Kyungdong City Gas경동도시가스

Kyungdong City Gas is a small, low-margin gas distributor whose shares trade near the bottom of their 52-week range, with profitability roughly stable.

The company distributes natural gas in Ulsan and Yangsan, mostly to large industrial customers, and earned about ₩37B net income on ₩1.72T revenue over the twelve months to H1 2026. Revenue has fallen over recent years while operating margin has edged up to 2.3%. The shares closed at ₩20,700, down 3.9% over one month and about flat over one year.

What stands out

• Trailing operating margin is 2.3% and net margin 2.2%, slightly above the 2025 full-year level of 1.9% operating margin.
• Revenue fell 1.8% in 2025 and 21.9% in 2023 after a 58.2% jump in 2022, so top-line results are volatile.
• Valuation is low on the data given: P/E about 3.3 and P/B about 0.2, with no dividend yield shown.
• The company reports cash of ₩48.4B against borrowings of ₩5.0B, and liabilities at 88% of equity.
• Foreign ownership eased from 8.4% to 8.0% over 60 days, while the 20-day flows show net foreign selling.

What to watch

• The fair value model gives a base of ₩103,726 against the ₩20,700 close, but the bear case is ₩41,097; the data does not explain the gap, so treat the model with caution.
• Upcoming filings, since the recent list shows a new representative director appointed in August and an IR event on 19 October, with no results date given.
• Industrial customer concentration and gas procurement from Korea Gas Corporation, which are named in the profile as core exposures.