Samchully삼천리

Samchully's first-half 2026 profit is thin but positive, and the shares trade at low multiples after a weak year.

Samchully is a Korean city gas distributor in Gyeonggi and Incheon, with side businesses in power generation, BMW car sales, district energy and construction. For the twelve months to H1 2026 it reported revenue of ₩5.3T, operating income of ₩172B and net income of ₩134B, with liabilities at about 120% of equity. The shares closed at ₩123,300 on 2026-10-21, down 6.1% over one month and 3.1% over one year, and sit well below their 52-week high of ₩161,900.

What stands out

• Margins are slim: the operating margin is 3.2% and the net margin 2.5% on a trailing basis, compared with 3.0% and 2.1% (operating and net) for 2025 as a whole, so the business is low-margin but improving.
• Valuation looks low on the data given: P/E 3.3, P/B 0.2 and a 2.4% dividend yield, while the DCF-based fair value in the pack is ₩366,089 (base case), well above the current price; the bear case shows ₩0 and the bull case ₩1,207,912, so the range is very wide and the model is not a forecast.
• Debt is significant: borrowings of ₩383B against cash of ₩298B, and liabilities at 119.6% of equity.
• Free cash flow was ₩106B on a trailing basis, which covers a good part of net income.
• Filings in the last few months include a rights offering (paid-in capital increase) decision and an amendment, a share acquisition in another company, several related-party transactions, and 5%+ holding reports. Recent news is mostly corporate and safety-related, with an award for the annual report.

What to watch

• Details and timing of the rights offering (paid-in capital increase), including share count, price and use of proceeds, which the pack does not provide.
• Foreign ownership has eased from 12.6% to 11.9% over 60 days and foreign investors were net sellers over the last 20 days, so watch whether these flows continue.
• Upcoming full-year 2026 results and any change to the debt level or the margin trend, since the pack contains no forward earnings estimates.