Corporate Logo(source: kogas.or.kr)
On April 24, Hana Securities stated that Korea Gas Corp. (036460) is expected to see reduced volatility in its quarterly earnings this year, projecting more stable performance compared to recent years. The brokerage maintained its “Buy” rating and a target price of 55,000 KRW. The stock closed at 38,750 KRW in the previous session.
Yoo Jae-sun, an analyst at Hana Securities, noted, “Earnings over the past few years were significantly affected by one-off items, leading to high quarterly volatility. However, there appear to be no major issues impacting this year’s performance.”
While the company’s annual earnings capacity is likely to decline year-on-year due to base effects from non-recurring costs in 2024, the analyst pointed to a gradual reduction in uncollected receivables amid falling raw material prices. “This reduces concerns over dividend payouts compared to previous years,” he added.
Regarding gas tariff adjustments, Yoo said, “Last year, public utility rates were frozen in the first half, and the comprehensive cost settlement, which usually occurs in May, was postponed to July. We expect civilian gas rates to see a slight increase in July, aligning with this year’s settlement timeline.”
He further explained, “If the current decline in oil prices and the strength of the Korean won against the U.S. dollar persist, the company may begin recovering principal from uncollected receivables as early as the fourth quarter. Although earnings from resource development are expected to decline, we do not foresee large-scale impairment losses.”
Yoo also highlighted the potential upside from foreign exchange gains, stating, “Given the high exchange rates last year, the current levels may positively affect net income on a standalone basis. Should receivables decrease materially, the company could slightly normalize its dividend payout ratio.”
Korea Gas Corp.’s first-quarter sales are projected to reach 12.9 trillion KRW with operating profit of 925.2 billion KRW, broadly in line with market expectations.
*[KOSPI]Korea Gas Corporation(KOGAS)(036460) is a company that imports LNG from overseas to supply domestic power plants and city gas operators. The government is the major shareholder of KOGAS. Market capitalization stands at 3.58 trillion won(as of April 23, 2025, closing price).
Corporate Logo(source: kogas.or.kr)
On April 24, Hana Securities stated that Korea Gas Corp. (036460) is expected to see reduced volatility in its quarterly earnings this year, projecting more stable performance compared to recent years. The brokerage maintained its “Buy” rating and a target price of 55,000 KRW. The stock closed at 38,750 KRW in the previous session.
Yoo Jae-sun, an analyst at Hana Securities, noted, “Earnings over the past few years were significantly affected by one-off items, leading to high quarterly volatility. However, there appear to be no major issues impacting this year’s performance.”
While the company’s annual earnings capacity is likely to decline year-on-year due to base effects from non-recurring costs in 2024, the analyst pointed to a gradual reduction in uncollected receivables amid falling raw material prices. “This reduces concerns over dividend payouts compared to previous years,” he added.
Regarding gas tariff adjustments, Yoo said, “Last year, public utility rates were frozen in the first half, and the comprehensive cost settlement, which usually occurs in May, was postponed to July. We expect civilian gas rates to see a slight increase in July, aligning with this year’s settlement timeline.”
He further explained, “If the current decline in oil prices and the strength of the Korean won against the U.S. dollar persist, the company may begin recovering principal from uncollected receivables as early as the fourth quarter. Although earnings from resource development are expected to decline, we do not foresee large-scale impairment losses.”
Yoo also highlighted the potential upside from foreign exchange gains, stating, “Given the high exchange rates last year, the current levels may positively affect net income on a standalone basis. Should receivables decrease materially, the company could slightly normalize its dividend payout ratio.”
Korea Gas Corp.’s first-quarter sales are projected to reach 12.9 trillion KRW with operating profit of 925.2 billion KRW, broadly in line with market expectations.
*[KOSPI]Korea Gas Corporation(KOGAS)(036460) is a company that imports LNG from overseas to supply domestic power plants and city gas operators. The government is the major shareholder of KOGAS. Market capitalization stands at 3.58 trillion won(as of April 23, 2025, closing price).