Seoul City Gas (Seoul Dosi Gas) is a city-gas company that takes natural gas brought in by Korea Gas Corporation through its pipeline network and supplies it to households and commercial and industrial users in the southwestern Seoul region, collecting fees in return. Because the LNG raw-material cost is essentially passed through to consumers, the top line is large (around ₩1.8 trillion a year) but the supply margin is thin (operating margin 0.9%), and non-operating income from long-accumulated investment and financial assets supports net profit. Indeed, 2025 net profit of ₩30.9 billion exceeds operating profit of ₩17.4 billion, and on March 26, 2026 it voluntarily disclosed a corporate value-up plan and in February continued a dividend of ₩2,750 per share (about 4.9%). What stands out lately is that a high dividend yield of about 4.9%, a deep asset discount at 0.23x P/B, a stable balance sheet and the formalization of a value-up plan are strengths — while an ROE of 2.8% and an operating margin of 0.9% make core-business profitability low, net profit swings with non-operating results so earnings are hard to gauge from a single year's figure, and the core business slowed year on year in Q1.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 7.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 2.5% lower than a year earlier.
- ROE is 2.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.9%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2018-12-31
Largest shareholder Seoul Dosi Development 26.26% (corporate)
Controlling bloc incl. related parties 38.73%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Seoul City Gas (Seoul Dosi Gas) is a city-gas company that takes natural gas (LNG) brought in by Korea Gas Corporation through its pipeline network and supplies it to households and commercial and industrial users in the southwestern Seoul region (areas such as Gangseo, Yangcheon, Guro, Geumcheon, Yeongdeungpo, Dongjak and Gwanak), collecting fees in return.
- Most revenue is gas-sales proceeds, but because the LNG raw-material cost is essentially passed straight through to consumers, the top line is large (around ₩1.8 trillion a year) while the supply margin the company actually keeps is thin (operating margin 0.9%).
- So core-business operating profit is on the small side at ₩10-20 billion a year, and the non-operating income from investment and financial assets the company has long accumulated substantially supports net profit.
- Indeed, 2025 net profit of ₩30.9 billion exceeds operating profit (₩17.4 billion).
- It is a structure where a stable, rate-regulated supply business and a thick base of held assets together create corporate value.
- The latest close is ₩54,500 and the market cap is ₩269.8 billion.
- The price sits below the 20-day line (₩54,950) and below the 60-day line (₩58,745).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 44.6, a neutral level.
- The one-month change is -1.5%, the three-month change is -10.8%, and the position versus the 52-week high is -26.2%.
- Relative strength against the KOSPI is 21 (1-99, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 80% of all stocks by strength.
- Over the past three months it lagged the index by 29.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The heart of the valuation is a P/B (how many times net assets per share the price represents) of 0.24x.
- That means it trades at a quarter of the net assets the company holds, a result reflecting that the assets are thick but the profit those assets currently generate is thin.
- ROE (how much is earned in a year on equity) is low at 2.8% and the operating margin is 0.9%, so core-business profitability is a clear weakness.
- Conversely, the balance sheet is solid.
- A debt ratio (debt relative to equity) of 160.8% is not heavy for a utility, and a current ratio of 238% and interest coverage of 5.9x leave ample short-term liquidity and interest-servicing capacity.
- For a stock like this — where core-business profit is small and net profit swings with non-operating results — the forward figure is closer to the real picture than a single year's trailing number, and 9.2x is not heavy compared with peer gas utilities, while the 0.23x P/B is the lowest in the peer set.
- So on either a trailing or a forward basis, rather than being in a zone of heavy price burden, it is closer to a place priced cheaply relative to asset value.
- Revenue has grown around 9% a year on average over five years, but this is closer to a top-line change directly reflecting LNG-unit-price swings than to growth in the profit the company keeps.
- Core-business operating profit swung from losses in 2023-2024 to a ₩17.4 billion profit in 2025, and net profit reached ₩30.9 billion in 2025 as non-operating income from held investment and financial assets was added.
- The level of this year's earnings implied by the forward P/E is a picture made by the supply margin of the core business that turned to profit plus the dividend, interest and valuation gains that steadily come from the thick base of held assets.
- City gas is a seasonal business in which winter heating demand takes a large share, so the earnings flow through the year is uneven, and in the most recent quarter (Q1 2026) the core business slowed somewhat, with revenue -2.5%, operating profit -11.3% and net profit -14.7% (year on year).
- However, this is one quarter's year-on-year trend, and a feature of this stock's earnings structure is that income from non-operating assets substantially fills in the core-business swings.
- This year's most meaningful development is the 'corporate value-up plan' voluntarily disclosed on March 26, 2026.
- In that a company that has borne a deep asset discount at 0.23x P/B has put shareholder returns and capital efficiency on the official agenda, it could be a catalyst for re-valuation over the medium term.
- It held its annual general meeting around the same time, and in February decided a cash dividend, continuing returns of ₩2,750 per share (dividend yield about 4.9%).
- In May it filed a quarterly report and a corporate governance report, faithfully meeting its regular disclosure duties.
- Whether the value-up plan translates into numbers such as ROE improvement or expanded dividends is a matter to confirm through future results and disclosures.
- The strengths are clear.
- (1) A high dividend yield of about 4.9% and a deep P/B of 0.23x mean it is priced cheaply relative to asset value; (2) it has a solid balance sheet with stable debt and liquidity; and (3) it has formalized shareholder returns with a corporate value-up plan.
- This year's forward P/E is also not heavy compared with peer gas utilities.
- Points to review together are that (1) with ROE of 2.8% and an operating margin of 0.9%, core-business profitability is low; (2) net profit swings with non-operating results, so earnings are hard to gauge from a single year's figure; and (3) the core business slowed year on year in Q1.
- In sum, it is a stock that is strong in a phase where its thick asset value and high dividend are recognized by the market and the value-up plan leads to improved capital efficiency and dividends, and where the weakness of low ROE stands out in a phase where the core margin thins further or non-operating income declines.
🔎 Valuation vs peers Inconclusive
The same city-gas and gas-utility peer set (similar rate regulation and LNG wholesale/retail structure). Korea Gas Corporation is domestic gas wholesale and Daesung Energy is city-gas retail in the Daegu area, close in business texture.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Gas Corporation | 22.41x | 0.28x | 1.23% |
| Daesung Energy | 7.83x | 0.56x | 7.12% |
The P/E of 9.07x is lower than Korea Gas Corporation's (24x) and near Daesung Energy's (7.75x), a middle position, and the P/B of 0.25x is the lowest of the three. Relative to net assets it clearly looks cheap, but that discount is substantially explained by low profitability — ROE of 2.8% and an operating margin of 0.9% — and by earnings volatility that swings with non-operating results. Moreover, last year's trailing P/E is a single-year figure mixing in strongly one-off-like non-operating income, so it has low reliability in an earnings-inflection period, and this year's forward earnings are somewhat weak, reflecting the Q1 slowdown. So it is a stock that turns on whether 'the assets are cheap, but is profitability and earnings quality supporting it,' and rather than a firm undervalued or overvalued call, re-valuation is seen as depending on whether the corporate value-up plan is executed.
Price history Close · MA20 · MA60
The latest close is ₩54,500 and the market capitalization is ₩269.8 billion. The price sits below its 20-day moving average (₩54,950) and below its 60-day moving average (₩58,745). 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 44.6, a neutral level. The one-month change is -1.5%, the three-month change is -10.8%, and the position relative to the 52-week high is -26.2%. Relative strength versus the KOSPI is 21 (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 20% of all stocks. Over the past three months it lagged the index by 29.2%. 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 -29.21% / 6M -44.64% / 12M -61.18%
Key metrics vs sector median
Valuation
The P/E of 8.72x is above the sector median (5.77x). The P/B of 0.24x is below 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 2.8%, below the sector average (7.0%). The operating margin is 0.9%. The debt ratio is 160.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.1B | $1.2B | +7.29% ↑ faster |
| Operating profit | -$2.1M | -$6.8M | $11.5M | — |
| Net profit | $13.4M | $22.5M | $20.5M | -8.72% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $846.9M | $1.1B | $1.1B | $1.1B | $1.2B |
| Operating profit | -$3.3M | $2.2M | -$2.1M | -$6.8M | $11.5M |
| Net profit | $5.7M | $11.9M | $13.4M | $22.5M | $20.5M |
| Revenue CAGR | 4-yr avg 9.36% | ||||
Revenue rose 7.3% year over year (2023 ₩1.7 trillion → 2024 ₩1.7 trillion → 2025 ₩1.8 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.4%. The two-year revenue CAGR is 3.2%. In the most recent quarter (Q1 2026), revenue was 2.5% 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 5.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26FilingVoluntarily disclosed a corporate value-up plan, formalizing a direction of improving shareholder returns and capital efficiencyOver the medium term it could be a catalyst for resolving the deep P/B discount and for re-valuation, though whether it leads to actual ROE and dividend improvement figures needs later confirmation Source
- 2026-02-25DividendCash and stock dividend decision — continuing returns of ₩2,750 per share (dividend yield about 4.9%)A short-term positive maintaining the high-dividend appeal, but if core-business earnings decline the dividend capacity needs checking Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue, operating profit and net profit slowed year on yearThe Q1 core business, in which winter demand concentrates, weakened, so short-term earnings momentum is soft Source
- 2026-03-18EarningsFY2025 business report filed — operating profit swung to a profit (₩17.4 billion), with net profit of ₩30.9 billion confirmedConfirms the core business turned from a loss to a profit, though net profit was slightly lower year on year Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-02-25DividendCash/stock dividend decision
📖 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.