Seoul City Gas서울가스

Seoul City Gas is barely profitable on thin margins, and its shares have fallen about 19% over the past year.

Seoul City Gas is a city gas distributor serving households and businesses in parts of Seoul and Gyeonggi Province, with city gas supply making up nearly all revenue. For the trailing twelve months to H1 2026 it reported revenue of about ₩1.79T, operating income of about ₩9.9B and net income of about ₩22.4B, with free cash flow negative at about ₩-1.7B. The shares closed at ₩51,700 on 2026-10-28, near the bottom of their 52-week range of ₩50,700 to ₩84,200.

What stands out

• Operating margin is about 0.6% and net margin about 1.3% on a trailing basis, so profitability is very thin.
• Net income in 2025 was about ₩30.9B against operating income of about ₩17.4B, meaning non-operating items played a large role; the filings in the data do not explain the drivers.
• Revenue grew 7.3% in 2025 after falling slightly in 2024 and 2023, and the trailing figure is about ₩1.79T.
• Valuation metrics are low, with a P/E of 11.4 and P/B of 0.2, but ROE is only about 2% and no dividend yield is listed.
• Foreign ownership is small at 2.8%, and the 20-day flows show institutions net sellers and retail net buyers.

What to watch

• The full-year 2026 results and the next quarterly report, which will show whether the trailing margins hold.
• Free cash flow, which was negative on a trailing basis, and the balance of about ₩4.9B in borrowings against about ₩32.9B in cash.
• Ongoing changes in the largest shareholder's holdings, reported in June and May 2026; the data contains no news headlines to add context.