SK Gas buys LPG overseas and sells it domestically, and beyond that distribution its center of gravity is shifting to overseas LPG trading and the 1.2GW Ulsan GPS combined-cycle power plant, which began commercial operation at the end of 2024. Its 2025 revenue is about ₩7.7 trillion, but what changes the quality of its profit is power generation and trading. In the first half of 2026 it sold a 49% stake in Ulsan GPS for about ₩1.2242 trillion (retaining the remaining 51%), securing funds for debt repayment and shareholder returns, and its quarterly report confirmed Q1 results. What stands out lately is that power generation and trading have lifted its earnings strength and, with a P/B of 0.68x, a 4.2% dividend, and an 18.6% FCF yield, it trades below net assets; the cautions are that 2026 net profit contains a large one-off gain from the stake sale that will not recur, and that generation profit can swing with the SMP and trading profit with international prices.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 8.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 44.2% higher than a year earlier.
- ROE is 8.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder SK Discovery 72.08% (corporate)
Controlling bloc incl. related parties 72.11%
With the controlling bloc holding 72%, control is very secure but the free float is thin.
🔎 In-depth analysis
- SK Gas is rooted in buying LPG (liquefied petroleum gas) overseas and selling it domestically.
- Two large pillars have been added to that.
- One is 'trading,' buying and selling LPG overseas.
- The other is the Ulsan GPS power plant.
- Ulsan GPS is a 1.2GW combined-cycle plant that can run on both LNG and LPG, and it began commercial operation at the end of 2024.
- In other words, today's SK Gas is a company whose center of gravity is shifting beyond 'a company that sells gas' toward 'a company that makes and sells electricity from gas.' LPG distribution is the larger part of revenue (about ₩7.7 trillion in 2025), but what changes the quality of its profit is power generation and trading.
- The latest close is ₩211,500 and the market cap is ₩2.0 trillion.
- The price sits below its 20-day line (₩216,000) and below its 60-day line (₩238,025).
- Trading beneath both its short- and medium-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 43.2, a neutral level.
- The one-month change is -1.9%, the three-month change is -18.0%, and the position versus the 52-week high is -28.5%.
- Relative strength versus the KOSPI is 17 (on a 1-99 scale that weights the past year's return against the index with more emphasis on recent performance; higher means stronger than the market).
- That places it in roughly the top 83% of all stocks by strength.
- Over the past three months it has lagged the index by 29.9%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Start with the valuation metrics.
- The P/E ratio (how many times one year's profit the share price represents) is 8.32x.
- The P/B (how many times book net assets the share price represents) is 0.67x, below 1x.
- In other words, the share price is set cheaper than the net assets the company records on its books.
- The dividend yield is 4.2% (₩9,000 per share) and the payout ratio is about 34.5%.
- Profitability is an ROE (how much it earns in a year on its equity) of 8.0% and an operating margin of 5.8%.
- On the balance sheet, the debt ratio (debt versus equity) of 166.9% is not low, because building the power plant took a great deal of money.
- Debt-inclusive metrics are also worth noting: EV/EBIT (enterprise value divided by operating profit, a debt-inclusive counterpart to the P/E) is 9.1x.
- Net debt (total borrowings minus cash) is about ₩2.0 trillion.
- In particular, the FCF yield (the ratio of cash actually earned to market cap; higher means more cash-generation appeal) is a high 18.6%.
- That means the cash it earns is close to a fifth of its market cap.
- Over five years, revenue rose modestly from ₩6.5 trillion in 2021 to ₩7.7 trillion in 2025.
- Profit swung year to year: operating profit recovered to ₩442.8 billion in 2025, up 54.2% from the prior year.
- The core of the change is the most recent quarter.
- Q1 2026 revenue was ₩2.64 trillion, up 44.2% year on year.
- Operating profit surged 101.7% to ₩227.7 billion.
- Net profit jumped 188.5% to ₩267.4 billion.
- Q1 net profit alone already exceeded full-year 2025 net profit.
- Two things overlapped in this surge.
- First, Ulsan GPS generation and overseas LPG trading both did well.
- Second, a large disposal gain was reflected from the sale of a 49% stake in Ulsan GPS in the first half.
- As the first year in which the power business runs fully year-round, this is a phase in which the earnings strength of the operating base itself has stepped up a level.
- The most important event for understanding this company is the sale of the Ulsan GPS stake.
- In the first half of 2026, SK Gas handed over a 49% stake in Ulsan GPS for about ₩1.2242 trillion.
- It still holds 51% after the sale, so the plant remains a subsidiary.
- The company said it would use the cash secured for debt repayment, new businesses, and shareholder returns.
- As a company that had carried heavy debt, this points toward reducing debt and widening dividend capacity.
- Beyond that, regular and ad hoc disclosures such as transactions with affiliates, debt guarantees, and the corporate governance report followed.
- The quarterly report (March 2026) officially confirmed Q1 results.
- The points to observe are clear.
- Earnings strength has stepped up as power generation and trading are added, and the stake sale has secured cash and financial headroom.
- A P/B of 0.68x, a 4.2% dividend, and an 18.6% FCF yield are signals that a company that earns cash well trades below net assets.
- The cautions must be weighed alongside.
- 2026 net profit contains a large one-off factor, the disposal gain from the stake sale.
- That gain will not recur next year.
- Also, the power business is affected by movements in the wholesale electricity price (SMP), and LPG trading profit can swing with international prices.
- In short, it is strong under conditions where the power base takes hold and finances improve.
- Conversely, looking only at recurring profit stripped of the one-off gain, it is weak if generation and trading margins waver.
🔎 Valuation vs peers Undervalued
Based on the substance of LPG import and distribution and gas and power businesses, we took the fellow LPG operator E1 and gas and power utilities as the peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| E1 | 5.44x | 0.28x | 5.18% |
| Korea Gas Corporation | 22.41x | 0.28x | 1.23% |
| Korea District Heating Corporation | 2.27x | 0.33x | 14.73% |
Direct competitor E1 is centered on pure LPG distribution, with a P/E of 5.3x and a P/B of 0.28x. SK Gas is priced higher than E1 at a P/E of 8.5x and a P/B of 0.68x, which can be seen as a premium reflecting the added growth pillars of power generation (Ulsan GPS) and trading. Its profitability is lower than the district-heating utility Korea District Heating (ROE of 14.7%) but well ahead of Korea Gas Corporation (ROE of 1.2%). On last year's P/E of 8.5x alone it may not look especially cheap, but in a phase where profit is rising sharply, the multiple on last year's results underestimates the company's current earnings strength. Reflecting a full year of generation and expanded trading, the multiple on this year's profit falls well below that. Viewing the discount to net assets, the high cash yield, and the improved finances together, we judge it to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩211,500 and the market capitalization is ₩2.0 trillion. The price sits below its 20-day moving average (₩216,000) and below its 60-day moving average (₩238,025). 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 43.2, a neutral level. The one-month change is -1.9%, the three-month change is -18.0%, and the position relative to the 52-week high is -28.5%. Relative strength versus the KOSPI is 17 (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 17% of all stocks. Over the past three months it lagged the index by 29.9%. 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 -29.91% / 6M -42.05% / 12M -68.29%
Key metrics vs sector median
Valuation
The P/E of 8.32x is in line with the sector median (9.68x). The P/B of 0.67x is below the sector median (0.80x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 8.0%, in line with the sector average (7.0%). The operating margin is 5.8%. The debt ratio is 166.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.6B | $4.7B | $5.1B | +8.18% ↑ faster |
| Operating profit | $201.2M | $190.3M | $293.5M | +54.20% ↑ faster |
| Net profit | $214.7M | $128.6M | $155.9M | +21.25% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.3B | $5.3B | $4.6B | $4.7B | $5.1B |
| Operating profit | $69.9M | $258.8M | $201.2M | $190.3M | $293.5M |
| Net profit | $165.2M | $170.4M | $214.7M | $128.6M | $155.9M |
| Revenue CAGR | 4-yr avg 4.27% | ||||
Revenue rose 8.2% year over year (2023 ₩7.0 trillion → 2024 ₩7.1 trillion → 2025 ₩7.7 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 54.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.3%. The two-year revenue CAGR is 4.8%. In the most recent quarter (Q1 2026), revenue was 44.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 4.3%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-29FilingDecision to transfer a 49% stake in Ulsan GPS. Retains 51% after the sale, keeping the plant as a subsidiary.About ₩1.2 trillion of cash inflow improves the financial structure and expands room for debt repayment and shareholder returns. The disposal gain sharply lifts 2026 net profit (a one-off). Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue of ₩2.64 trillion (up 44.2%), operating profit of ₩227.7 billion (up 101.7%), and net profit of ₩267.4 billion (up 188.5%).A full year of Ulsan GPS generation and overseas LPG trading performance greatly lift profit. Q1 net profit exceeds the prior full-year figure. Source
- 2026-06-04FilingDecision to acquire shares and equity securities of other companies (amended filing). Stake acquisition related to new and affiliate investment.Interpreted as part of a rebalancing that uses cash secured from the sale as funding for new businesses. Source
- 2026-05-29FilingCorporate governance report disclosure. A large-business-group status disclosure was filed together.A regular disclosure on governance and affiliate status, a transparency matter rather than a direct impact on results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩227.7 billion (+101.7% YoY) | ₩227.7 billion | Confirmed | link |
| Q1 2026 revenue | ₩2.64 trillion (+44.2% YoY) | ₩2.64 trillion | Confirmed | link |
| Ulsan GPS 49% stake sale amount | approx. ₩1.2 trillion | approx. 1₩224.2 billion | Confirmed | link |
| Estimated 2026 net profit (our own) | approx. ₩500.0 billion | — | Unverified | link |
Recent filings
- 2026-06-04Amended filing
- 2026-05-29Corporate governance report
- 2026-05-29Material-fact report (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Amended filing
- 2026-05-22Disclosure
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Amended filing
- 2026-05-14Amended filing
- 2026-05-14Disclosure
📖 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.