PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩3,000 per share · Prices as of the 2026-10-02 close
Samchully, the leading city gas supplier in the Seoul metropolitan area, is using its stable cash flow and improving balance sheet to expand into food, dining, and mobility businesses, most recently through the acquisition of Sungkyung Foods.
Holds a 16.3% share of domestic city gas supply by heat volume, the largest single operator, and turned net-cash on a consolidated basis in Q1 2026
2025 consolidated operating profit reached KRW 159.6 billion, up roughly 40% year-on-year, the highest of the past four fiscal years
Q1 2026 operating profit of KRW 110.1 billion reflected strong heating-season seasonality, while Q4 2025 net profit briefly turned negative due to a lag between selling price and cost adjustments
Completed full acquisition of seasoned-seaweed maker Sungkyung Foods in 2026, diversifying into the food (F&B) business
Hana Securities initiated coverage with a price target in June 2026 (source and date specified)
Samchully's core business is city gas supply across 13 cities in Gyeonggi Province and 5 districts in Incheon, and the company holds a 16.3% share of domestic city gas supply by heat volume, the largest of any single operator.
Through subsidiaries, it also engages in resource development, plant engineering, renewable energy, asset management, and water businesses, and in July 2024 it acquired the remaining 49% stake in district-energy subsidiary Husys from Korea District Heating Corporation, making Husys a wholly owned unit.
Its power generation operations run through subsidiaries such as S-Power, with earnings tied to the wholesale System Marginal Price (SMP).
In its lifestyle segment, Samchully operates an automobile dealership business covering brands such as BMW and BYD, along with a restaurant business run through subsidiary SL&C across multiple dining brands.
In 2026, the company entered the food (F&B) business by acquiring full ownership of seasoned-seaweed maker Sungkyung Foods, which ranks third in the domestic seasoned-seaweed market behind Dongwon and CJ.
Because city gas supply rights are regionally exclusive, Samchully does not compete directly with other regional gas suppliers such as Seoul City Gas, Incheon City Gas, or Daesung Energy, and instead benefits from steady new demand tied to residential development and industrial complexes in the metropolitan area.
Overall, Samchully is pursuing a strategy of leveraging the stable cash generation of its core energy business to expand into non-energy areas including food, dining, and mobility.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩1.1T | ₩29.2B | 2.7% |
| 2025Q3 | ₩914.8B | ₩22.8B | 2.5% |
| 2025Q4 | ₩1.4T | ₩10.7B | 0.7% |
| 2026Q1 | ₩1.8T | ₩110.2B | 6.1% |
| 2026Q2 | ₩1.2T | ₩28.1B | 2.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩5.8T | ₩91.2B | ₩66.7B | 1.6% | 4.7% | 226.3% |
| 2023 | ₩5.7T | ₩174.5B | ₩120.2B | 3.1% | 7.9% | 164.6% |
| 2024 | ₩5.1T | ₩114.3B | ₩101.4B | 2.2% | 6.4% | 156.6% |
| 2025 | ₩5.3T | ₩159.6B | ₩111.5B | 3.0% | 6.6% | 136.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
Consolidated revenue declined from KRW 5.789 trillion in 2022 to KRW 5.664 trillion in 2023 and KRW 5.121 trillion in 2024, before rising again to KRW 5.275 trillion in 2025.
Operating profit jumped from KRW 91.2 billion (a 1.6% margin) in 2022 to KRW 174.5 billion (3.1%) in 2023, eased to KRW 114.3 billion (2.2%) in 2024, then rose to KRW 159.6 billion (3.0%) in 2025, the highest level of the past four fiscal years.
Net profit attributable to owners also fluctuated, moving from KRW 66.7 billion in 2022 to KRW 120.2 billion in 2023, KRW 101.4 billion in 2024, and KRW 111.5 billion in 2025, showing an overall recovery trend.
Operating cash flow fell to KRW 110.2 billion in 2023 before climbing to KRW 210.5 billion in 2024 and KRW 306.5 billion in 2025, while the debt ratio declined for four consecutive years from 226.3% in 2022 to 164.6% in 2023, 156.6% in 2024, and 136.9% in 2025, reflecting a steadily strengthening balance sheet.
On a quarterly basis, Q2 2025 revenue was KRW 1.1002 trillion with operating profit of KRW 29.2 billion and owner net profit of KRW 21.0 billion; Q3 2025 revenue fell to KRW 914.8 billion with operating profit of KRW 22.8 billion and net profit of KRW 9.3 billion; and Q4 2025 revenue rose to KRW 1.4463 trillion with operating profit of KRW 10.7 billion, yet owner net profit turned slightly negative at roughly negative KRW 0.1 billion.
This Q4 earnings softness reflects a recurring seasonal pattern tied to the lag between city gas selling prices and cost recognition.
By contrast, Q1 2026 showed strong heating-season effects with revenue of KRW 1.8095 trillion, operating profit of KRW 110.2 billion, and net profit of KRW 94.2 billion, while Q2 2026 posted revenue of KRW 1.1573 trillion, operating profit of KRW 28.1 billion, and net profit of KRW 30.6 billion.
Summing the most recent four quarters (Q3 2025 through Q2 2026), owner net profit totaled approximately KRW 134.1 billion, a level close to the full-year 2025 result.
South Korea's city gas industry operates under a de facto regional monopoly structure in which supply rights are allocated by area, and Samchully holds the largest supply volume of any single operator in the southwestern Seoul metropolitan area and parts of Incheon.
Gas tariffs are linked to a raw-material cost pass-through system, so international LNG prices and the won-dollar exchange rate feed into wholesale prices, and a recurring lag between wholesale and retail price adjustments has periodically compressed year-end quarterly earnings.
Industrial gas demand is expected to rise on the back of expanded mandatory clean-energy usage zones and greater interest in eco-friendly energy, and district-energy penetration is expected to expand through 2028 under the government's sixth district-energy supply plan.
The district-energy (combined heat and power) segment is exposed to the spread between heat tariffs set by Korea District Heating Corporation and the price of natural gas used for power generation, so periods combining heat-tariff cuts with strong gas prices can pressure profitability.
Power-generation subsidiaries tend to benefit from higher revenue when the System Marginal Price (SMP) is strong, partially offsetting seasonal softness in the core gas business.
Meanwhile, the newly entered seasoned-seaweed market has benefited from the K-food export boom, with domestic seaweed export value growing at roughly a 14% annual average over the past five years and demand from the United States rising notably.
Samchully completed the process of securing full ownership of Sungkyung Foods in the first half of 2026.
In February, it acquired the 100% stake previously held by private equity firm Affinity Equity Partners (Appalma Capital) for approximately KRW 119.5 billion, and in July it participated alone in a Sungkyung Foods rights offering aimed at securing mid- to long-term growth funding, injecting an additional roughly KRW 50 billion.
Sungkyung Foods derives a substantial portion of its revenue from overseas exports, with a notably high share going to the United States, positioning it to benefit from the broader K-food export growth trend.
In the automobile sales segment, sales of brands such as BMW and BYD continue, while the dining segment operates multiple restaurant brands through subsidiary SL&C.
On the shareholder-return side, in March 2026 the company retired 428,248 previously acquired treasury shares, reducing total shares outstanding to 3,626,777.
Hana Securities initiated coverage on Samchully on June 11, 2026 with a buy rating and a price target, explaining that the target was derived by applying a target price-to-book multiple of 0.3x to its 2026 book-value-per-share forecast, a discount reflecting the company's lower dividend yield relative to peer city gas companies.
The same report noted that if dividend policy were to become more explicitly based on consolidated earnings or dividend-per-share metrics, it could become a factor affecting shareholder value going forward.
In the fourth quarter, the lag in reflecting city gas selling prices against costs, along with the spread between district heating tariffs and gas prices, is expected to remain a key swing factor for annual results.
Samchully shares trade at a level well below book value per share, indicating a discount to net asset value. Over the past five years, the price-to-earnings ratio has averaged around 7.8x and the price-to-book ratio around 0.4x, providing a historical band for comparison with current multiples.
On the earnings side, operating margins have shown a gradual improving trend since 2022, and while quarterly profits fluctuate with seasonal factors, the sum of the most recent four quarters approached the full prior-year level.
The dividend yield has remained relatively low in recent years, which reflects a dividend policy that has stayed largely stable over an extended period. Hana Securities noted in its June 2026 report that it applied a discount reflecting the company's lower dividend yield relative to peer city gas companies.
Taken together, these valuation signals suggest the importance of weighing net asset value, the earnings recovery trend, and dividend policy jointly.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-22
The core gas business generates steady cash flow underpinned by a regionally exclusive supply structure, and the company turned net-cash on a consolidated basis in Q1 2026.
Operating cash flow rose from KRW 110.2 billion in 2023 to KRW 306.5 billion in 2025, while the debt ratio fell for four straight years from 164.6% to 136.9% over the same period. This financial strength supports capacity for new acquisitions or shareholder returns.
In 2026 the company entered the seasoned-seaweed business by acquiring full ownership of Sungkyung Foods, which derives a substantial share of revenue from overseas exports, particularly to the United States.
The BMW and BYD automobile dealerships and the restaurant brand business also form growth pillars separate from the core energy business. This diversification could reduce reliance on gas tariff regulation and seasonal earnings swings.
In March 2026, the company retired 428,248 previously acquired treasury shares, reducing total shares outstanding. Hana Securities noted that if dividend policy becomes more explicitly tied to consolidated earnings or dividend-per-share metrics, it could become a factor supporting shareholder value going forward. This move can serve as a reference point for the direction of shareholder-return policy.
A recurring lag between city gas selling prices and cost recognition has periodically compressed fourth-quarter results, and owner net profit briefly turned negative at roughly negative KRW 0.1 billion in Q4 2025. This seasonal volatility is a factor to watch when assessing annual earnings trends.
The district-energy (combined heat and power) segment is exposed to the spread between heat tariffs set by Korea District Heating Corporation and the price of natural gas used for power generation.
Market commentary has flagged that periods combining heat-tariff cuts with strong gas prices could pressure this segment's profitability.
Sungkyung Foods reported 2024 revenue of KRW 123.5 billion, up from the prior year, but operating profit fell to KRW 8.2 billion from KRW 10.0 billion the year before, suggesting the acquisition's contribution to overall group earnings may remain modest in its early stages. The seasoned-seaweed market also remains competitive against larger players such as Dongwon and CJ.
City gas and district energy tariffs are set subject to government and local authority approval, and when price-stability policy takes priority, cost increases may not be fully passed through to tariffs. This is a structural risk that can narrow the price-cost spread and pressure earnings.
City gas wholesale prices are linked to international LNG prices and the won-dollar exchange rate, so a sharp rise in energy prices or increased currency volatility could raise cost burdens. Continued strength in natural gas prices for power generation could also affect profitability in the district energy segment.
The acquisition of Sungkyung Foods and expansion into non-energy businesses such as automobile sales and dining introduce business risks that differ from the core energy operations into the broader group.
There is also a possibility that synergies from integrating newly acquired subsidiaries fall short of expectations or require additional investment.
Q3 earnings and the quarterly report filing should be checked to see whether the anticipated price-cost spread pressure for Q4 materializes in actual results.
Winter heating-season sales volumes and the monthly city gas unit price adjustment disclosures can be tracked to gauge the earnings impact of the price-cost timing lag.
This period marks the first full-period consolidation of Sungkyung Foods, allowing a check on overseas export performance, particularly in the United States, and its contribution to group earnings.
The 2026 full-year results and year-end dividend disclosure will show whether dividend policy becomes more explicit, as noted by Hana Securities, whether based on consolidated earnings or dividend-per-share metrics.
Korea District Heating Corporation's tariff adjustment outcome should be checked alongside natural gas price trends for power generation to assess changes in the district energy segment spread.
Samchully, as the leading city gas supplier in the Seoul metropolitan area, maintains stable cash flow underpinned by a regionally exclusive business structure, and its 2025 operating profit was the highest of the past four fiscal years while its debt ratio improved for four consecutive years.
However, seasonal earnings softness in the fourth quarter caused by the lag between gas selling prices and costs, along with volatility in the district energy segment's heat tariff-gas price spread, remain factors that can move results.
In 2026, the company entered the food business by bringing seasoned-seaweed maker Sungkyung Foods fully under its umbrella, expanding its non-energy portfolio alongside automobile sales and dining.
The treasury share retirement and Hana Securities' buy rating and price target issued in June 2026 reflect market attention, but these are that securities firm's own judgment, which investors should evaluate independently.
The earnings contribution from newly acquired subsidiaries remains in an early stage, warranting continued monitoring of integration progress and overseas export performance.
Overall, the company can be understood as combining core-business financial stability and diversification efforts with seasonal and regulatory factors that continue to influence results.
Report written 2026-09-05 · Data as of 2026-09-04
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