Daesung Energy supplies city gas to the Daegu and North Gyeongsang region, delivering gas to household, commercial, and industrial customers through pipelines and charging by usage as its core revenue source. As a living-infrastructure business, it is shaped more by household counts, temperature, and tariff structure than by the economic cycle. In February it disclosed annual results (revenue ₩1.0 trillion, operating profit ₩30.3 billion, net profit ₩24.6 billion) together with a cash-and-in-kind dividend decision, keeping the dividend yield in the 3.8% range and the payout ratio at 27.6%. The strengths worth noting are the low valuation of a 0.53x P/B and a P/E in the 7x range, rapidly rising annual earnings, a dividend yield around 3.8%, and near-monopoly regional stability; the offsets to watch are that thin margins can leave earnings swayed by tariffs and feedstock prices, and that the most recent quarter's results declined.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 2.3% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.4% lower than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.0%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Daesung Holdings 71.27% (corporate)
Controlling bloc incl. related parties 72.73%
With the controlling bloc holding 73%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Daesung Energy is a company that supplies city gas based in the Daegu and North Gyeongsang region.
- Its core revenue source is delivering city gas to household, commercial, and industrial customers through pipelines and charging by usage.
- In accounting terms as well, revenue is recognized when gas is actually delivered to the customer, while income from supplying and replacing gas meters is recognized separately from city-gas supply as a distinct item.
- The city-gas business has a strong living-infrastructure character with supply zones fixed by region, so it is shaped more by household counts, temperature, and tariff structure than by swings in the economic cycle.
- The latest close is ₩7,010 and market capitalization is ₩192.8 billion.
- The price sits above the 20-day line (₩6,828) and below the 60-day line (₩7,814).
- With the short- and mid-term trends diverging, the direction should be read separately.
- The RSI (an auxiliary gauge that scores the strength of gains against declines over the past 14 days on a 0-100 scale) is 48.5, a neutral level.
- The one-month change is +0.4%, the three-month change is -28.3%, and the position versus the 52-week high is -51.3%.
- Relative strength against the KOSPI is 16 (on a 1-99 scale, converted from the past year's return versus the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 84% of all stocks by strength.
- Over the past three months it has lagged the index by 37.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Recent annual revenue is about ₩1.0 trillion, operating profit is ₩30.3 billion, and net profit is ₩24.6 billion.
- The operating margin is 3.0%; given the nature of an infrastructure business with set tariffs, the margin itself is not thick.
- That said, the ROE (how much is earned in a year on equity) of 7.1% is above the industry average.
- On valuation, the P/E (how many times one year's earnings the price represents) is 7.83x and the P/B (how many times book value) is 0.56x.
- A P/B well below 1x means the market's price is roughly half of the company's net assets, so on absolute level alone the stock is closer to undervalued than expensive.
- Within the industry the P/E does look higher than some peers, but that reflects a mix in which those peer companies' earnings jumped sharply in one year, so it is hard to conclude the price is burdensome on that basis.
- The debt ratio is 128.9%, a common level for an infrastructure industry like city gas with heavy facility investment, and with an interest coverage ratio of 7.6x the company comfortably covers interest with the profit it earns.
- Looking at the annual trend, revenue grew steadily from ₩770.4 billion in 2021 to about ₩1.0 trillion in 2025, and over the same period operating profit rose from ₩16.0 billion to ₩30.3 billion.
- In the most recent year in particular, operating profit rose 48.2% and net profit 42.6% year over year, an acceleration in the pace of growth.
- That earnings jumped sharply while revenue grew only gently in the 2% range can be read as the result of feedstock prices and the supply-tariff structure combining to improve margins.
- In other words, it was a year in which the quality of earnings improved more than the top line.
- By contrast, the most recent quarter (cumulative first quarter of 2026) saw revenue fall 7.4% and operating profit 3.9% year over year.
- City gas is a business with pronounced seasonality, with heating demand concentrated in the cold first quarter, so rather than judging the full year from one quarter's figure, variables such as temperature and tariffs should be watched alongside.
- This year's revenue reference point is around ₩968.5 billion, and whether the large earnings increase of the prior year was a one-off or a continuing trend is something that will be confirmed as quarterly results accumulate.
- On February 3, 2026, a revenue and profit-structure change disclosure announced annual results (revenue ₩1.0 trillion, operating profit ₩30.3 billion, net profit ₩24.6 billion).
- On the same day a cash-and-in-kind dividend decision was also disclosed, showing that the company is continuing a policy of returning earned profit to shareholders.
- The dividend yield is in the 3.8% range and the payout ratio (the share of earned profit paid out as dividends) is 27.6%, a structure that maintains dividends comfortably within earnings capacity.
- With results and dividends disclosed on the same day, watching whether the increased profit translates into actual cash returns makes the picture clearer.
- The strong side is clear.
- The stock trades at about half of book value (0.53x P/B) and its P/E is in the 7x range, so the absolute valuation is low; annual earnings are rising quickly and there is a dividend yield in the 3.8% range, a structure that reads as an undervaluation signal.
- Near-monopoly city-gas supply is also not a business whose demand suddenly collapses.
- The cautious side is that the margin itself is thin, so earnings can be swayed by changes in tariffs and feedstock prices, and that the most recent quarter's results fell year over year.
- In short, this is a stock that is strong when the low valuation, dividends, and earnings improvement support it, and weak when quarterly results turn down again or the tariff environment turns unfavorable.
- Whether the prior year's earnings surge continues is the key point to confirm going forward.
🔎 Valuation vs peers Overvalued
Peers with adjacent market capitalization within the electricity and gas sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanjin Heavy Industries Holdings | 2.28x | 0.30x | 13.29% |
| Seoul City Gas | 8.72x | 0.24x | 2.77% |
| Samchully | 3.71x | 0.25x | 6.63% |
Within electricity and gas, the priority was on public-data peers with nearby market capitalization. The current P/E (how many times one year's earnings the price represents) is 7.83x and the P/B (how many times book value) is 0.56x. That said, for smaller-cap names, earnings volatility and financing disclosures have a large effect, so no firm conclusion was drawn from indicators based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩968.5 billion | — | — |
| Next quarter | Q2 2026 | ₩155.4 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩7,010 and the market capitalization is ₩192.8 billion. The price sits above its 20-day moving average (₩6,828) and below its 60-day moving average (₩7,814). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 48.5, a neutral level. The one-month change is +0.4%, the three-month change is -28.3%, and the position relative to the 52-week high is -51.3%. 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 16% of all stocks. Over the past three months it lagged the index by 37.6%. 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 -37.62% / 6M -45.96% / 12M -64.71%
Key metrics vs sector median
Valuation
The P/E of 7.83x is above the sector median (5.77x). The P/B of 0.56x 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 7.1%, in line with the sector average (7.0%). The operating margin is 3.0%. The debt ratio is 128.9%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $662.5M | $659.5M | $674.7M | +2.29% ↑ faster |
| Operating profit | $13.5M | $13.6M | $20.1M | +48.21% ↑ faster |
| Net profit | $9.9M | $11.4M | $16.3M | +42.63% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $510.6M | $676.7M | $662.5M | $659.5M | $674.7M |
| Operating profit | $10.6M | $622,172 | $13.5M | $13.6M | $20.1M |
| Net profit | $7.9M | -$500,669 | $9.9M | $11.4M | $16.3M |
| Revenue CAGR | 4-yr avg 7.21% | ||||
Revenue rose 2.3% year over year (2023 ₩999.5 billion → 2024 ₩995.1 billion → 2025 ₩1.0 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 48.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.2%. The two-year revenue CAGR is 0.9%. In the most recent quarter (Q1 2026), revenue was 7.4% 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 3.6%, is on the high side.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-03EarningsChange of 30% or more in revenue or profit structure (15% for large corporations): annual revenue ₩1.0 trillion, operating profit ₩30.3 billion, net profit ₩24.6 billion.This is recent confirmed or preliminary results data. Check whether it points in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-02-03Update[Amended] cash-and-in-kind dividend decision: confirm the return terms.This is a disclosure related to cash returns or a change in share count. Check whether earnings capacity and cash flow support it. Source
- 2026-02-03UpdateCash-and-in-kind dividend decision: confirm the return terms.This is a disclosure related to cash returns or a change in share count. Check whether earnings capacity and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,010 | ₩7,010 | Confirmed | link |
| Latest quarterly results | revenue ₩392.4 billion, operating profit ₩25.7 billion | revenue ₩392.4 billion, operating profit ₩25.7 billion | Confirmed | link |
| Annual results | revenue ₩1.0 trillion, operating profit ₩30.3 billion | revenue ₩1.0 trillion, operating profit ₩30.3 billion | Confirmed | link |
| Original results disclosure | revenue30%: revenue ₩1.0 trillion · operating profit ₩30.3 billion · net profit ₩24.6 billion | revenue30%: revenue ₩1.0 trillion · operating profit ₩30.3 billion · net profit ₩24.6 billion | Confirmed | link |
| Original shareholder-return disclosure | []ㆍ: | []ㆍ: | Confirmed | link |
| Original shareholder-return disclosure | ㆍ: | ㆍ: | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Disclosure
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' 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.