SGC Energy is rooted in district energy and combined heat and power, supplying steam and electricity to industrial complexes and selling RECs, carbon credits, and liquefied carbon dioxide; on top of that, construction subsidiary SGC E&C handles EPC and public works and SGC Solution makes glass products, so the group earns steady cash from power together with revenue from construction and glass that rises and falls with the economy. Preliminary results on April 21 and the first-quarter report on May 15 confirmed that first-quarter operating profit doubled, followed by decisions to acquire shares in other entities and provide debt guarantees, a large-business-group status disclosure, and IR events. What stands out is that on top of the stable cash flow from power and energy, first-quarter operating profit doubled and net profit turned positive, and with a P/B of 0.81x the price sits below net assets, all strengths; the caution is that with a 475.5% debt ratio, a 67.2% current ratio, and interest coverage around 1x, profit could be eroded by interest and guarantee burdens if rates or costs move, and in 2025 the company did in fact post a net loss.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 475.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 4.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.1% lower than a year earlier.
- ROE is -8.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.9%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Woo-sung 19.59% (individual)
Controlling bloc incl. related parties 54.76%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Despite its name, SGC Energy is not a single-business company.
- Its root is district energy and combined heat and power: one leg is an energy division that supplies steam and electricity to and around industrial complexes and, through biomass co-firing and CCU (carbon capture and utilization) facilities, sells renewable-energy certificates (RECs), carbon credits, and liquefied carbon dioxide.
- Added to this are construction subsidiary SGC E&C, which handles EPC (engineering, procurement, and construction) and domestic public works, and SGC Solution, which makes glass products such as door glass.
- In short, it earns steady cash from power and revenue that rises and falls with the economy from construction and glass, and it also has the character of a business holding company that manages subsidiary stakes.
- The latest close is ₩41,000 and the market cap is ₩590.8 billion.
- The price sits below its 20-day line (₩45,582) and below its 60-day line (₩51,267).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 41.1, a neutral level.
- The one-month change is -20.4%, the three-month change is -20.4%, and the position versus the 52-week high is -40.2%.
- Relative strength versus the KOSPI is 75 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 25% of all stocks by strength.
- Over the past three months it lagged the index by 36.9%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The P/B (how many times net assets the share price is) is 0.84x, meaning the market cap is smaller than the company's net assets.
- The confirmed annual (2025) P/E (how many times a year's earnings the share price is) cannot be calculated because of that year's net loss, but this reflects an accounting result driven by non-operating losses rather than a broken core business.
- The debt ratio (debt against equity) is 475.5%; running an asset-heavy business like power plants alongside construction means funding facilities and works through borrowing, so this level is natural for the sector.
- Still, with a current ratio of 67.2% and interest coverage around 1x, short-term funding and interest flows are worth checking each quarter.
- In short, it is hard to judge cheap or expensive from last year's empty P/E alone; the substance comes into focus only when the below-net-assets P/B is viewed together with this year's recovering profit.
- Five-year revenue ran ₩1.9 trillion in 2021 → ₩2.8 trillion in 2022 → ₩3.0 trillion in 2023 → ₩2.4 trillion in 2024 → ₩2.5 trillion in 2025, peaking once and then recovering slightly.
- 2025 operating profit fell year on year, but on a quarterly basis the trend clearly turned.
- First-quarter 2026 revenue of ₩611.5 billion was similar to the prior year, yet operating profit of ₩35.7 billion was up more than 103.6%, more than doubling from the same quarter a year earlier.
- This goes beyond a simple base effect: core profitability turned as the stable margins of power and energy were joined by a recovery in construction and glass, and in the first quarter net profit had already turned positive at ₩6.2 billion.
- The forecast P/E for this year simply carries forward this quarterly-confirmed profit recovery.
- As long as power demand, construction volume, and glass utilization hold up together, it is natural for this year's profit to move out of last year's weakness.
- Recent disclosures read in two threads.
- The first is earnings confirmation: the April 21 consolidated preliminary operating results via fair disclosure and the May 15 first-quarter report officially confirmed that first-quarter operating profit doubled.
- The second is the capital activity typical of a holding company and conglomerate: an April 1 decision to acquire shares in another entity (relating to subsidiary and affiliate stakes) and debt-guarantee decisions on March 30 and May 6.
- These support and grow group affiliates but can also add to investment and guarantee burdens, so they must be viewed from both sides.
- In addition, the May 29 large-business-group status disclosure reaffirmed that the company is part of a large business group, and the June 1 and April 16 IR disclosures show it communicates steadily with the market.
- There are two strengths.
- One is that the core recovery has been confirmed in quarterly results: on top of the stable cash flow from power and energy, first-quarter operating profit doubled and net profit turned positive.
- The other is the price position: with the share below net assets at a P/B of 0.81x, there is room in the valuation if the recovering profit continues steadily.
- The caution is the financial structure.
- With a 475.5% debt ratio, a 67.2% current ratio, and interest coverage around 1x, profit could be eroded by interest and guarantee burdens if rates or costs move, and in 2025 the company did post a net loss.
- The conclusion comes down to conditions: if margin recovery across the power, construction, and glass divisions continues quarter by quarter and borrowing and guarantee burdens stay controlled, the below-net-assets price is a strong position; conversely, if quarterly profit proves one-off or funding and interest burdens grow again, it is a weak one.
- Because this is a volatile stock, follow-up confirmation from quarterly results and disclosures is key.
🔎 Valuation vs peers Overvalued
Taking power and district energy, the root of the business, as the basis, energy utilities such as gas and heat suppliers are used as the peer set, on the premise that SGC is a diversified company also doing construction and glass, so direct comparison with pure utilities has limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Gas Corporation | 22.41x | 0.28x | 1.23% |
| Korea District Heating Corporation | 2.27x | 0.33x | 14.73% |
| Samchully | 3.71x | 0.25x | 6.63% |
| Seoul City Gas | 8.72x | 0.24x | 2.77% |
(a) Position versus peers: energy utilities such as Korea Gas, Korea District Heating, Samchully, and Seoul City Gas trade at P/Bs of 0.24-0.35x, while SGC is higher than the peer set at 0.81x (though still below net assets). (b) Nature of the premium: this gap looks less like simple overvaluation than a partial reflection of the diversification from adding construction and glass and expectations of the first-quarter profit rebound. Still, because the peers are pure utilities, they do not fully represent SGC's composite structure. (c) Limits of trailing and the forward basis: 2025 was a net loss, so there is no confirmed trailing P/E for last year, and that figure alone does not make it expensive. Viewing the doubling of first-quarter 2026 operating profit together with a DART seasonality approximation (annual operating profit of about ₩144.5 billion), profit is on a recovery path; but the forecast P/E reflecting the in-progress profit exceeds the sector median, and adding the 475% debt ratio and the net-loss history, the current price is judged to be a phase where expectations run ahead. No official future target figures from the company are confirmed in disclosures.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩646.2 billion | approx. ₩35.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩41,000 and the market capitalization is ₩590.8 billion. The price sits below its 20-day moving average (₩45,582) and below its 60-day moving average (₩51,267). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.1, a neutral level. The one-month change is -20.4%, the three-month change is -20.4%, and the position relative to the 52-week high is -40.2%. Relative strength versus the KOSPI is 75 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 75% of all stocks. Over the past three months it lagged the index by 36.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -36.87% / 6M +17.53% / 12M -31.95%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.84x is above the sector median (0.30x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -8.8%, below the sector average (7.0%). The operating margin is 3.9%. The debt ratio is 475.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.0B | $1.6B | $1.6B | +4.49% ↑ faster |
| Operating profit | $70.8M | $125.7M | $63.5M | -49.46% ↓ slower |
| Net profit | $27.9M | $43.1M | -$40.7M | -194.40% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.9B | $2.0B | $1.6B | $1.6B |
| Operating profit | $100.9M | $138.8M | $70.8M | $125.7M | $63.5M |
| Net profit | $39.7M | $74.8M | $27.9M | $43.1M | -$40.7M |
| Revenue CAGR | 4-yr avg 6.70% | ||||
Revenue rose 4.5% year over year (2023 ₩3.0 trillion → 2024 ₩2.4 trillion → 2025 ₩2.5 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 49.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.7%. The two-year revenue CAGR is -9.8%. In the most recent quarter (Q1 2026), revenue was 1.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.2%, is on the high side.
Points to watch
- Debt far exceeds equity (debt ratio 475.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.2%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-21EarningsFirst-quarter 2026 consolidated preliminary operating results via fair disclosure — operating profit roughly doubled year on yearShort term: a signal of core profitability recovering. Even allowing for the base effect from a weak year-earlier first quarter, the company officially confirmed a margin rebound. Source
- 2026-05-15FilingFiling of the first-quarter 2026 report — revenue ₩611.5 billion, operating profit ₩35.7 billion confirmedMedium term: the preliminary results are confirmed in a formal report. A first source for checking whether margins by segment (energy, construction, glass) will persist. Source
- 2026-04-01FilingDecision to acquire shares and equity securities in another entity — investment relating to affiliate and related-company stakesMedium term, two-sided: activity to increase subsidiary stakes as a business holding company, but the investment burden could add to the balance sheet, so follow-up confirmation is needed. Source
- 2026-05-06UpdateDecision to provide a debt guarantee to a third party (a same-type disclosure was also made on March 30)Medium-term caution: a guarantee that props up group affiliates, but with the debt ratio already high at 475%, it can increase contingent liabilities and interest burden. Source
- 2026-05-29FilingLarge-business-group status disclosure — reaffirms that SGC is part of a large business groupFor reference: a disclosure that supports its character as a diversified company and business holding entity with many affiliates rather than a single operating company. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-06Disclosure
- 2026-04-21EarningsFair-disclosure notice
- 2026-04-16Disclosure
- 2026-04-16Disclosure
- 2026-04-16Disclosure
- 2026-04-01Disclosure
- 2026-04-01Disclosure
- 2026-03-30Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.