Corporate Logo(source: kogas.or.kr)
NH Investment & Securities said on September 24 that Korea Gas Corp.(036460) is currently in a range where its dividend appeal stands out. The brokerage maintained its “Buy” rating and target price of 50,000 won.
As of 10:26 a.m., the stock was trading at 38,700 won, up 0.13% from the previous session.
With winter approaching, a peak demand season, a city gas tariff hike within the year appears unlikely. Under President Lee Jae-myung’s policy stance, overseas resource development expansion also remains limited. However, given favorable external factors and a high payout ratio, NH estimated this year’s dividend yield at 6.7%.
Analyst Lee Min-jae explained, “We are maintaining our rating and target price as dividend visibility based on stable earnings remains high. In particular, if the largest shareholder, Korea Electric Power Corp., raises the payout ratio in light of its urgent need to secure funds, dividend attractiveness could further increase.”
Lee projected that cumulative net income on a separate basis, the benchmark for dividends, would reach 612 billion won. Based on a 40% payout ratio, the dividend yield at the target price was estimated at 5.4%.
Still, concerns linger as the potential for active recovery of overdue receivables worth over 1 trillion won annually has diminished, following the failure to raise city gas rates in the first half.
“However, with crude oil and natural gas prices stabilizing, the likelihood of additional large-scale receivables is low,” Lee added. “Given the current government’s stance, significant new overseas resource development projects are also unlikely, meaning the company’s financial structure is not expected to deteriorate further.” Korea Gas Corp.’s outstanding receivables stood at 14.2 trillion won in the first half.
*[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 3.568 trillion won (as of September 23, 2025, closing price).
Corporate Logo(source: kogas.or.kr)
NH Investment & Securities said on September 24 that Korea Gas Corp.(036460) is currently in a range where its dividend appeal stands out. The brokerage maintained its “Buy” rating and target price of 50,000 won.
As of 10:26 a.m., the stock was trading at 38,700 won, up 0.13% from the previous session.
With winter approaching, a peak demand season, a city gas tariff hike within the year appears unlikely. Under President Lee Jae-myung’s policy stance, overseas resource development expansion also remains limited. However, given favorable external factors and a high payout ratio, NH estimated this year’s dividend yield at 6.7%.
Analyst Lee Min-jae explained, “We are maintaining our rating and target price as dividend visibility based on stable earnings remains high. In particular, if the largest shareholder, Korea Electric Power Corp., raises the payout ratio in light of its urgent need to secure funds, dividend attractiveness could further increase.”
Lee projected that cumulative net income on a separate basis, the benchmark for dividends, would reach 612 billion won. Based on a 40% payout ratio, the dividend yield at the target price was estimated at 5.4%.
Still, concerns linger as the potential for active recovery of overdue receivables worth over 1 trillion won annually has diminished, following the failure to raise city gas rates in the first half.
“However, with crude oil and natural gas prices stabilizing, the likelihood of additional large-scale receivables is low,” Lee added. “Given the current government’s stance, significant new overseas resource development projects are also unlikely, meaning the company’s financial structure is not expected to deteriorate further.” Korea Gas Corp.’s outstanding receivables stood at 14.2 trillion won in the first half.
*[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 3.568 trillion won (as of September 23, 2025, closing price).