Daesung Energy대성에너지

Daesung Energy is a small Daegu city gas distributor with thin margins, modest profit recovery, and a shares price well below its 52-week high.

The company supplies city gas to households and businesses in Daegu and nearby areas, with city gas making up over 97% of revenue. On a trailing twelve-month basis to H1 2026 it reported revenue of ₩977B, operating income of ₩31B and net income of ₩29B, with a 3.2% operating margin. The share price closed at ₩7,100 on 21 October 2026, about 56% below its 52-week high of ₩16,150, and the 1-year return is -14.6%.

What stands out

• Profitability has improved from very thin levels: operating margin was 0.1% in 2022 and 3.0% in 2025, and net income rose from ₩1.2B in 2022 to ₩24.6B in 2025.
• 2025 revenue was ₩1.02T, up 2.4%, after a 0.5% decline in 2024 and a 2.1% decline in 2023.
• Leverage is meaningful: liabilities are 84.5% of equity and borrowings are ₩60B against cash of ₩40B, while trailing free cash flow was ₩33B.
• Valuation metrics are low on the data provided: P/E of 6.6, P/B of 0.5 and a 3.5% dividend yield, while the filed DCF-based fair value estimate of ₩9,626 sits above the current price but the bear case is shown as ₩0.
• Filings in 2026 include a cash dividend decision, the AGM results and the half-year report for June 2026; no news headlines were included in the data.

What to watch

• The next quarterly and annual filings, to see whether the margin and profit improvement holds.
• Debt levels relative to cash and free cash flow, given the high liabilities-to-equity ratio.
• Foreign ownership fell from 1.9% to 1.5% over the last 60 days, and the 20-day investor flows show retail and institutional net selling while foreign investors were net buyers; the data does not explain the cause.