PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,375 per share · Prices as of the 2026-10-02 close
Incheon City Gas posted consolidated revenue of KRW 963.0 billion and owner net income of KRW 19.2 billion in 2025, extending gradual top-line growth while its debt ratio has declined for four consecutive years.
2025 consolidated revenue reached KRW 963.0 billion, rising for a fourth straight year, with owner net income of KRW 19.2 billion.
After a seasonal operating loss in Q3 2025, the company swung back to profit in Q4 2025 and Q1 2026, reconfirming a clear seasonal earnings pattern.
The debt ratio fell from 111.6% in 2022 to 88.4% in 2025, declining for four consecutive years and strengthening financial stability.
The Incheon city government reviewed a retail city gas rate increase from August 2026 to reflect rising international LNG feedstock costs.
The company is at an early stage of developing a cold-heat business for the Songdo Bio Cluster using LNG regasification waste heat from KOGAS's Incheon terminal.
Incheon City Gas is a fuel gas manufacturing and pipeline supply company covering Incheon and western Gyeonggi, listed on the KOSPI in November 2006.
Residential customers represent the largest demand segment, accounting for roughly half of total sales volume, while commercial and industrial demand is expanding through large-building gas heat pumps, absorption chillers, and cogeneration.
City gas rates consist of a wholesale rate set by KOGAS and a retail supply charge approved by the Incheon city government, with a raw-material cost pass-through mechanism that directly reflects international LNG prices and exchange-rate movements into costs.
The company previously co-founded Cheongna Energy with Lotte Construction and Korea Western Power to participate in district energy supply for the Cheongna and Gimpo areas, but exited the business in 2014 when GS Energy acquired its 30% stake in Cheongna Energy for KRW 35 billion upon final payment.
The company stated the stake sale was part of efforts to reduce debt. Since then it has focused on its core city gas supply business while pursuing a new cold-heat business that uses waste LNG regasification heat from KOGAS's Incheon terminal to replace electric cooling at the Songdo Bio Cluster.
The Incheon city government has also worked to expand supply and secure fuel-cell power generation supply contracts to support revenue growth.
The competitive landscape consists of regional monopoly city gas operators each serving their own franchise areas, so the company does not directly compete with peers such as Samchully or Seoul City Gas, though it shares similar industry and policy conditions.
The largest shareholder is the founding family led by Chairman Lee Jong-hoon, which maintains a stable controlling stake.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩222.2B | ₩5.7B | 2.6% |
| 2025Q3 | ₩139B | -₩1.6B | −1.1% |
| 2025Q4 | ₩251.2B | ₩11.1B | 4.4% |
| 2026Q1 | ₩319.5B | ₩6.9B | 2.2% |
| 2026Q2 | ₩196.5B | ₩3.3B | 1.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩728.5B | ₩8.1B | ₩12.2B | 1.1% | 6.1% | 111.6% |
| 2023 | ₩781.3B | ₩16.5B | ₩17.5B | 2.1% | 8.3% | 109.8% |
| 2024 | ₩943.6B | ₩19.4B | ₩19.3B | 2.1% | 8.6% | 103.0% |
| 2025 | ₩963B | ₩19.1B | ₩19.2B | 2.0% | 8.0% | 88.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
2025 consolidated revenue rose to KRW 962.99 billion from KRW 943.61 billion in 2024, marking a fourth consecutive year of growth.
Over the same period, operating profit edged down to KRW 19.15 billion from KRW 19.42 billion a year earlier, and owner net income also slipped slightly to KRW 19.17 billion from KRW 19.27 billion.
The operating margin, which had fallen to 1.1% in 2022, recovered to and has since held in the low-2% range from 2023 onward.
Quarterly results show pronounced seasonality: in Q3 2025 revenue was KRW 139.0 billion with an operating loss of KRW 1.58 billion and an owner net loss of KRW 0.52 billion, reflecting the summer off-season slump.
The company then returned to profit in Q4 2025 with revenue of KRW 251.2 billion, operating profit of KRW 11.12 billion, and net income of KRW 9.41 billion, and Q1 2026 revenue hit a quarterly record of KRW 319.5 billion, generating operating profit of KRW 6.95 billion and net income of KRW 6.58 billion.
In Q2 2026, revenue moderated to KRW 196.5 billion and operating profit to KRW 3.30 billion, yet net income of KRW 4.17 billion exceeded operating profit, suggesting a contribution from non-operating items.
As a result, owner net income over the most recent four quarters (Q3 2025 through Q2 2026) totaled KRW 19.65 billion.
Annual operating cash flow grew from KRW 14.74 billion in 2022 to KRW 39.09 billion in 2025, demonstrating cash generation more stable than reported earnings, while the debt ratio declined from 111.6% in 2022 to 88.4% in 2025, indicating improving financial soundness.
South Korea's city gas industry is a regulated business in which operators holding regional monopoly supply rights set retail rates by adding a retail supply charge to a wholesale rate under a raw-material cost pass-through mechanism.
The wholesale rate is determined by KOGAS subject to Ministry of Trade, Industry and Energy approval, while the retail supply charge requires approval from a local government price stabilization committee, which can create a lag before cost increases are reflected in consumer rates.
Recently, LNG feedstock costs rose along with international oil prices and exchange-rate swings, sharply pushing up wholesale city gas rates, and Incheon city has maintained a rate freeze since 2023 but assessed that an increase would be unavoidable from August 2026, prompting a cost-calculation study.
This potential shift away from the multi-year rate freeze has drawn broader industry attention.
Residential demand remains stagnant despite new housing supply, weighed down by population decline and improved energy efficiency, while commercial and industrial demand is growing on the back of gas heat pumps in large buildings, absorption chillers, and carbon-neutrality policy.
Incheon City Gas operates under a regional monopoly across Incheon and western Gyeonggi, so it faces limited direct competitive pressure, but it shares the industry-wide structural characteristic of earnings being heavily influenced by rate regulation and policy direction.
The Incheon city government conducted a study on retail city gas supply costs for 2026, comprehensively considering gas companies' sales performance, expected sales volume, appropriate capital expenditure, and inflation to calculate an appropriate total cost, and is reported to use this as the basis for deciding whether and by how much to raise rates in August.
This follows the wholesale rate already reflecting higher international LNG feedstock costs, and the outcome could affect the retail margin structure going forward.
On the new-business front, the company began consultations and signed a letter of intent for its cold-heat business in June 2023, and once KOGAS completes selection of a cold-heat business operator, it plans to proceed with detailed design and begin initial cold-water supply to bio-manufacturing plants.
To diversify heat sources, the company has also secured heat produced by Horang Energy's fuel cells and begun heat trading. It is also monitoring progress on the incinerator at the Songdo Resource Recycling Center to secure incineration heat once installed.
The company has added an electrical construction business line to its articles of incorporation in response to carbon-neutrality policy and K-RE100 trends, preparing to expand into renewable-energy-related businesses.
However, these new initiatives remain at an early stage with limited revenue contribution so far, meaning the core city gas supply business and rate policy continue to dominate results.
The price-to-earnings ratio was observed in the low single digits around six times as of March-April 2026, while the price-to-book ratio during the same period stood below 0.5 times, indicating the stock has traded at a discount to net asset value in that period.
Earnings, after bottoming in 2022, have held stable at roughly KRW 19 billion annually over 2023-2025, reflecting continued earnings recovery.
The company has maintained a practice of resolving a year-end cash dividend at its annual general meeting every March, and this regular dividend-payment history is a factor that can be considered alongside earnings trends.
That said, quarterly volatility exists, including a seasonal Q3 operating loss, so annual and quarterly results should be examined together, and assessments of valuation levels may vary depending on each investor's own criteria.
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 2026-08-23
Annual operating cash flow rose from KRW 14.7 billion in 2022 to KRW 39.1 billion in 2025, demonstrating cash generation more stable than reported earnings. The debt ratio also fell from 111.6% in 2022 to 88.4% in 2025, a fourth consecutive year of decline that has markedly strengthened financial stability. This improved cash flow could support dividend capacity and funding for new-business investment.
The company is developing a cold-heat business for the Songdo Bio Cluster using waste LNG regasification heat from KOGAS's Incheon terminal, exploring new businesses based on unused energy.
It has also added an electrical construction business line to its articles of incorporation to prepare for expansion into renewable-energy-related areas. However, these new businesses remain at an early stage with limited revenue contribution so far.
The company has maintained a practice of resolving a year-end cash dividend at its annual general meeting every March. Because the founding family holds a substantial stake as the largest shareholder, there is a possibility that consistency in shareholder return policy could be maintained. That said, dividend size and policy can vary each year depending on board and shareholder meeting resolutions.
Retail city gas rates require local government approval, and there can be a lag before rising raw-material costs are reflected in consumer rates.
Incheon city has stated it intends to maintain a rate freeze as much as possible out of concern for vulnerable households, raising the possibility that cost increases could be reflected later than expected. This is a structural factor that can temporarily compress margins during periods of rising feedstock costs.
Residential customers account for the largest share of sales volume, but demand has been stagnant due to population decline and improved energy efficiency. In contrast, commercial and industrial demand is growing on expanded cooling equipment adoption, driving a shift in the revenue mix. A long-term slowdown in residential demand could constrain overall city gas sales volume growth.
In Q3 2025, revenue was KRW 139.0 billion with an operating loss of KRW 1.58 billion, repeating the summer off-season loss pattern. Conversely, revenue and profit are heavily concentrated in the winter quarters of Q4 and Q1. This seasonality is a factor that warrants caution when evaluating results on a quarterly basis.
Retail rates require local government approval, and reflection of cost increases can be delayed or limited by political and social factors. If public-interest demands such as heating subsidies for vulnerable groups intensify, the scope of rate increases could be constrained. This can widen the timing gap between costs and rates, affecting margins.
LNG import prices, the core input cost for city gas, are directly exposed to international oil prices and exchange-rate movements. If geopolitical risks such as Middle East tensions persist, upward pressure on wholesale rates could continue, potentially affecting retail margins.
Even under the cost pass-through mechanism, adjustment lags exist that can heighten short-term earnings volatility.
Under a governance structure where the founding family holds a large stake as the largest shareholder, minority shareholder proportion and liquidity can be relatively limited. As a small-cap stock with modest average daily trading volume, price volatility can be amplified. It cannot be ruled out that governance-related decisions may not fully reflect minority shareholder views.
It is worth checking whether the retail city gas rate increase under review by the Incheon city government is finalized and disclosed, and by how much.
It is worth checking for any wholesale rate change under the regular odd-month raw-material cost adjustment, typically effective on the 1st.
When the Q3 2026 quarterly report (provisional) is disclosed, the size of the summer off-season loss and the pace of recovery can be assessed.
At the annual general meeting, approval of the FY2026 year-end dividend and financial statements can indicate whether the shareholder return policy remains consistent.
Incheon City Gas posted 2025 revenue of KRW 963.0 billion and owner net income of KRW 19.2 billion, continuing gradual top-line growth over the past four years, while its debt ratio fell markedly from 111.6% to 88.4%, improving its financial structure.
Quarterly results show pronounced seasonality, with a recurring pattern of summer off-season losses and winter peak-season profits, and the operating loss in Q3 2025 followed by a return to profit in Q4 2025 and Q1 2026 was reconfirmed in the most recent quarters.
On the business side, the company remains centered on its core city gas supply operations while pursuing early-stage new businesses such as a cold-heat business using LNG regasification waste heat.
The Incheon city government's review of a city gas rate increase is a key variable tied to the lag in cost pass-through, and whether and by how much a rate hike is actually implemented could affect future margin trends.
Under a governance structure centered on the founding family, the company has a history of paying regular cash dividends each year, though shareholding concentration and liquidity are factors that warrant consideration alongside this.
Overall, the company can be characterized as a regional monopoly utility exhibiting stable cash flow and improving financial soundness alongside the structural characteristics of seasonality and rate regulation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.