Deokyang Energen덕양에너젠

Deokyang Energen is a small industrial hydrogen supplier whose shares have fallen sharply since listing, while earnings are thin and valuation is high.

The company refines by-product and other hydrogen into high-purity industrial gas and sells it to refining and petrochemical customers from plants in Yeosu and Gunsan. On trailing figures to H1 2026 it reported revenue of ₩143.2B, operating income of ₩6.7B and a 4.7% operating margin, but free cash flow was negative at about -₩1.2B. The share price is ₩6,880, down 18.3% over one month and 14.7% over three months, and well below its 52-week high of ₩42,800.

What stands out

• Trailing revenue is ₩143.2B with a 4.7% operating margin and 3.2% net margin, and the filings show a 2025 annual revenue figure equal to the trailing figure, so no year-on-year growth rate is available.
• Valuation is high relative to earnings: the trailing P/E is about 38.8 and P/B about 1.5, while the listed utility peers in the data show P/E ratios mostly between 2 and 6 and P/B ratios of 0.2 to 0.6.
• The company pays no dividend (0% yield), though a cash dividend decision and an interim dividend record date appear in the July 2026 filings; the amounts are not in the data.
• Foreign ownership fell from 2.2% to 1.8% over 60 days, and institutions and retail investors were net sellers over the last 20 days while foreign investors were slightly net buyers.
• The company's own DCF-based fair value estimates are ₩3,768 (bear), ₩5,756 (base) and ₩9,271 (bull), all below or near the current price in the base and bear cases only; these are model outputs, not forecasts or targets.
• Recent filings include a half-year report, an amended half-year report, a share acquisition and asset merger completion in May 2026, and a conversion right notice for a second series; no news headlines are in the data.

What to watch

• The next results and any further amendments to the half-year report, along with the amount and timing of the interim cash dividend.
• Free cash flow, which was negative on a trailing basis, and the company's ₩10.0B in borrowings against ₩27.7B in cash.
• Details of the second-series conversion right, which could affect the share count; the data does not say how many shares are involved.