Korea Gas Corporation buys LNG abroad under long-term contracts, converts it back to gas at nationwide receiving terminals, and sells it wholesale to city-gas companies and power plants through a pipeline network. Most of its roughly ₩33 trillion in annual revenue comes from this, and it effectively holds a monopoly on domestic import and wholesale. The heart of the model is the raw-material cost pass-through: gas costs it has not yet recovered pile up as 'receivables' and are collected when tariffs are raised. In the first quarter of 2026 operating profit of ₩910 billion and net profit of ₩548.3 billion (+49%) confirmed the improvement, and the dividend is set through a government dividend consultation body. What stands out lately is that the stability of its wholesale monopoly, a low share price at a P/B of 0.28x, and the direction of profit and debt ratio improving together as receivables are recovered are strengths, while roughly ₩13.3 trillion of receivables still outstanding, a debt ratio in the high 300% range, and the policy variable that tariffs require government approval could cap the pace of recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 496.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 79.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 5.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.9% higher than a year earlier.
- ROE is 1.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 59337.8%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Government of the Republic of Korea 26.15% (individual)
Controlling bloc incl. related parties 53.97%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Korea Gas Corporation buys liquefied natural gas (LNG) from overseas sources under long-term contracts, converts it back to gas at nationwide receiving terminals in Incheon, Pyeongtaek, Tongyeong, Samcheok, and elsewhere, and then sells it wholesale to city-gas companies and power plants through a nationwide pipeline network.
- Annual revenue is about ₩33 trillion, most of it from this gas wholesale, and it effectively holds a monopoly on domestic natural-gas import and wholesale.
- The heart of the earnings model is the 'raw-material cost pass-through': when the cost of gas bought at a high price cannot be immediately recovered in full through tariffs, the unrecovered amount piles up on the books as 'receivables' and comes back as profit later when tariffs rise.
- That is why revenue and profit often move in opposite directions.
- Beyond this there are overseas gas-field development in Mozambique and Australia and new hydrogen and LNG-bunkering businesses, but gas wholesale is overwhelmingly dominant.
- The latest close is ₩32,300 and the market cap is ₩3.0 trillion.
- The price sits below both its 20-day moving average (₩33,622) and its 60-day line (₩35,729).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 37.6, a neutral reading.
- The stock is down 8.1% over one month and 7.2% over three months, and it stands 31.8% below its 52-week high.
- Its relative strength versus the KOSPI is 13 (on a 1-99 scale that converts one-year return against the index, weighting recent performance more heavily; higher means stronger than the market), placing it in roughly the top 88% by strength across all stocks.
- Over the past three months it has lagged the index by 28.0%.
- Chart signals are best read alongside trading volume and disclosure dates.
- At a P/B of 0.28, the share price is under a third of book net asset value (₩117,019 per share).
- The P/E, by contrast, looks high at 22.41x, an illusion arising because 2025 controlling-interest net profit (₩133 billion) was temporarily and heavily depressed by summer off-season losses and receivable accrual.
- In other words, the P/E on last year's earnings overstates this company's normal earning power.
- The core financial burden is a very high debt ratio (debt relative to equity): about 496% at end-2025, though it fell to about 372% by the end of the first quarter of 2026 as receivables were recovered and earnings improved.
- ROE (how much is earned on equity in a year) is low at 1.2%, but this results from a regulated-tariff structure that has held down profit, with room to improve as receivables are recovered.
- The dividend-to-net-profit ratio (payout ratio) is about 76%, returning much of profit to shareholders, and the dividend yield is 3.5% (₩1,154 per share).
- Revenue is gentle, as befits a regulated utility (+5.5% year over year in 2025, about ₩33 trillion consolidated).
- The real thing to watch is the turn in profit.
- Controlling-interest net profit rode a roller coaster: a loss of -₩761.2 billion in 2023, a turn to a +₩1,149.0 billion profit in 2024, then +₩133 billion in 2025, all owing to the swings of receivable accounting created by surging LNG import prices and delayed tariff pass-through.
- Cumulative first-quarter 2026 results improved clearly, with operating profit of ₩910 billion (+9.1%) and net profit of ₩548.3 billion (+49.3%).
- That said, gas demand is heavily seasonal, concentrated in winter (the first quarter) and plunging in summer (the second and third quarters), so simply multiplying first-quarter results by four to view the year greatly overstates it.
- We see this year's annual net profit well above last year's ₩133 billion, as winter-peak strength and receivable recovery offset summer off-season weakness.
- Reflecting this recovery, the forward P/E is about 7x, a completely different picture from last year's trailing 22.6x, converging toward the low P/E band of energy-utility peers.
- Recent disclosures center on the first-quarter 2026 earnings improvement and governance/general-meeting procedures.
- On May 13-14, first-quarter provisional results on both a consolidated and a standalone basis (operating profit of ₩910 billion, net profit of ₩548.3 billion) were confirmed in fair disclosure, and on May 15 the quarterly report was filed, disclosing details such as the receivables balance.
- On May 8 there was a pre-notice of settlement results and a notice of an IR (investor briefing).
- Rather than one-off large orders, this company's real events are its quarterly results and the tariff and receivable flows that shape them, and a distinctive feature is that the dividend is decided through a government dividend consultation body, so it is not set by the company's own judgment alone.
- The strengths are the stability of a domestic natural-gas wholesale monopoly, a low share price under a third of book value (P/B 0.28, on the low side even among the peer group), and the direction of profit and debt ratio improving together as receivables are recovered.
- The first-quarter 2026 net profit gain of +49% underpins this improvement, and a forward P/E of about 7x on recovered earnings plus a 3.5% dividend yield add to the case for holding.
- The caution is roughly ₩13.3 trillion of receivables still outstanding and a high debt ratio in the high 300% range, which cap the pace of ROE recovery until a structure where tariffs fully reflect cost is established.
- Tariffs are also subject to government approval, so it is directly exposed to policy variables.
- In sum, in a phase where receivable recovery proceeds smoothly and tariff normalization continues, undervaluation stands out on both assets and earnings, while if tariff pass-through is delayed or international LNG prices surge again, receivables build up again and the improvement slows.
- The first-quarter flow and the forward earnings point to the former, that is, the earnings-recovery side.
🔎 Valuation vs peers Undervalued
Domestic government-linked energy utilities and gas suppliers (a real peer set that shares the regulated-tariff, raw-material cost, and tariff-normalization cycle).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea District Heating Corporation | 2.27x | 0.33x | 14.73% |
| Korea Electric Power | 2.64x | 0.47x | 17.74% |
| Samchully | 3.71x | 0.25x | 6.63% |
Among the regulated energy-utility peers (Korea District Heating with a P/B of 0.33 and ROE of 14.7%, Korea Electric Power with a P/B of 0.5 and ROE of 17.7%, and Samchully with a P/B of 0.25), Korea Gas Corporation's P/B of 0.28 is among the lowest, marking a clear discount on asset value. The trailing P/E of 22.6x on last year's earnings is an illusion arising because 2025 net profit was temporarily depressed by summer off-season losses and receivable accrual, overstating the company's normal earning power. Reflecting the earnings recovery confirmed by the first-quarter 2026 net profit gain of +49%, the forward P/E is about 7x, converging toward the low P/E band of peers. In other words, given the earnings inflection, on a forward basis it is actually a cheap zone. That its ROE is lower than peers is because roughly ₩13.3 trillion of receivables and the high debt ratio structurally hold down return on capital, so the pace of tariff normalization and receivable recovery is the key to closing the discount.
Price history Close · MA20 · MA60
The latest close is ₩32,300 and the market capitalization is ₩3.0 trillion. The price sits below its 20-day moving average (₩33,622) and below its 60-day moving average (₩35,729). 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 37.6, a neutral level. The one-month change is -8.1%, the three-month change is -7.2%, and the position relative to the 52-week high is -31.8%. Relative strength versus the KOSPI is 13 (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 12% of all stocks. Over the past three months it lagged the index by 28.0%. 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 -28.04% / 6M -48.53% / 12M -68.48%
Key metrics vs sector median
Valuation
The P/E of 22.41x is above the sector median (5.77x). The P/B of 0.28x is in line with 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 1.2%, below the sector average (7.0%). The operating margin is 59337.8%. The debt ratio is 496.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.9M | $2.2M | $2.3M | +5.45% ↓ slower |
| Operating profit | $1.0B | $2.0B | $1.4B | -30.04% ↓ slower |
| Net profit | -$504.5M | $760.0M | $88.2M | -88.40% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $18.2B | $34.3B | $1.9M | $2.2M | $2.3M |
| Operating profit | $821.6M | $1.6B | $1.0B | $2.0B | $1.4B |
| Net profit | $630.1M | $989.6M | -$504.5M | $760.0M | $88.2M |
| Revenue CAGR | 4-yr avg -89.35% | ||||
Revenue rose 5.5% year over year (2023 ₩2.8 billion → 2024 ₩3.4 billion → 2025 ₩3.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 30.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -89.3%. The two-year revenue CAGR is 12.6%. In the most recent quarter (Q1 2026), revenue was 11.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.6%, is on the high side.
Points to watch
- Debt far exceeds equity (debt ratio 496.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 79.1%).
- Revenue rose 5.5% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsFirst-quarter 2026 consolidated operating (provisional) results disclosure - operating profit of ₩910 billion (+9.1%), net profit of ₩548.3 billion (+49.3%)Profit improved clearly as the winter peak and receivable recovery overlapped. The debt ratio also fell to about 372% at quarter-end, a signal of easing financial burden. Source
- 2026-05-14EarningsFirst-quarter 2026 standalone operating (provisional) results disclosureConfirms an improving trend on a standalone basis alongside the consolidated results. Reaffirms peak-season earning power under the regulated-tariff structure. Source
- 2026-05-15FilingMarch (first-quarter) 2026 quarterly report filed - discloses details such as the receivables balance and debt structureA regular disclosure that officially confirms the receivables (about ₩13.3 trillion) and debt structure. Baseline material for judging the durability of the earnings improvement. Source
- 2026-05-08IRIR (investor briefing) held and pre-notice of settlement resultsSets up an investor-communication channel ahead of results. A forum where receivable-recovery plans and tariff direction are addressed. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2024 annual results (revenue, operating profit, net profit) | revenue ₩34 trillion / ₩3.00 trillion / ₩1.15 trillion(base 2024) | revenue 38 ₩388.7 billion / 3 ₩3.4 billion / 1 ₩149.0 billion | Confirmed | link |
| First-quarter 2026 results (operating profit and net profit, year over year) | ₩910.0 billion(+9.1%) / ₩548.3 billion(+49.3%) | ₩910.0 billion(+9.1%) / ₩548.3 billion(+49.3%) | Confirmed | link |
| Annual revenue (consolidated, actual scale) | base ₩3.5 billion | approx. ₩33 trillion') | Mismatch | link |
| FY2026 net profit estimate | approx. ₩430.0 billion(self-estimate) | — | Unverified | — |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-27Disclosure
- 2026-05-26Shareholders' meeting notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-14EarningsFair-disclosure notice
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-11Disclosure
- 2026-05-11Shareholders' meeting notice
- 2026-05-08Disclosure
- 2026-05-08EarningsEarnings disclosure
- 2026-05-06Disclosure
- 2026-05-06Shareholders' meeting notice
📖 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.