PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Daesung Energy, which supplies city gas to Daegu, Gyeongsan and nearby areas, posted consolidated revenue above KRW 1 trillion in 2025 with operating profit and net income expanding together, and the seasonal peak effect was clearly visible again in early 2026.
2025 consolidated revenue reached KRW 1,017.9 billion with operating profit of KRW 30.3 billion (3.0% operating margin), the strongest level in the recent four-year window.
After a net loss of about KRW 0.76 billion in 2022, net income expanded for three straight years through 2025, while the debt ratio declined from 165.9% to 128.9%.
The city gas segment accounts for more than 97% of revenue and operates under a government-notified tariff structure that provides a stable revenue base, according to financial data providers.
First-quarter 2026 revenue of KRW 392.4 billion and operating profit of KRW 25.7 billion reflected a strong winter peak, but revenue fell sharply to KRW 161.0 billion in the second quarter, underscoring the business's pronounced quarterly seasonality.
City gas tariffs are periodically adjusted under a raw-material cost pass-through mechanism, meaning earnings are directly linked to swings in international LNG prices and the won-dollar exchange rate.
Daesung Energy traces its roots to a 1947 coal briquette supplier in Daegu and is part of the Daesung Group; the city gas business was spun off from Daesung Holdings in 2009 and the company listed on the KOSPI market in 2010.
It is the regional monopoly city gas supplier for Daegu Metropolitan City and the surrounding Gyeongsan, Goryeong and Chilgok areas, supplying gas for cooking, heating, air-conditioning, commercial and industrial use after purchasing natural gas from Korea Gas Corporation.
According to financial data providers, the city gas segment accounts for more than 97% of revenue, and because purchase prices are set under a government-notified tariff, the company maintains a stable revenue base.
The company also operates 12 compressed natural gas (CNG) charging stations near major city bus depots, supporting the conversion of diesel city buses to natural gas vehicles.
In the Jukgok district of Daegu, it operates a combined heat and power plant that is cited as Korea's first new-town-type community energy system (CES), burning natural gas to produce electricity and heat for nearby apartment complexes, schools and commercial facilities.
In renewable energy, the company has participated in solar-related projects and a Power-to-Gas (P2G) technology development project led by the Korea Electric Power Research Institute.
Given that city gas supply territories are legally demarcated by region, direct in-territory competition is limited within Daegu and southern North Gyeongsang, and earnings variability mainly stems from temperature-driven demand swings and the timing lag in raw-material-cost tariff adjustments. Headcount is reported to be in the high 300s.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩171B | ₩1.3B | 0.7% |
| 2025Q3 | ₩128.3B | -₩4.7B | −3.6% |
| 2025Q4 | — | — | — |
| 2026Q1 | ₩392.4B | ₩25.7B | 6.6% |
| 2026Q2 | ₩161B | ₩2.7B | 1.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1T | ₩900M | -₩800M | 0.1% | −0.2% | 165.9% |
| 2023 | ₩999.5B | ₩20.4B | ₩14.9B | 2.0% | 4.7% | 151.3% |
| 2024 | ₩995.1B | ₩20.5B | ₩17.3B | 2.1% | 5.2% | 142.5% |
| 2025 | ₩1T | ₩30.3B | ₩24.6B | 3.0% | 7.1% | 128.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Consolidated revenue rose to KRW 1,017.9 billion in 2025 from KRW 995.1 billion in 2024, while operating profit expanded to KRW 30.3 billion (3.0% margin) from KRW 20.5 billion (2.1% margin) a year earlier.
Net income attributable to owners reached KRW 24.6 billion in 2025, extending a third consecutive year of growth after KRW 17.3 billion in 2024 and KRW 14.9 billion in 2023.
Compared with 2022, when the company posted revenue of KRW 1,020.9 billion but only KRW 0.94 billion in operating profit and a net loss of about KRW 0.76 billion, the three-year run of expanding earnings represents a clear directional turnaround.
On the balance sheet side, the debt ratio declined every year from 165.9% in 2022 to 151.3% in 2023, 142.5% in 2024 and 128.9% in 2025, reflecting simultaneous capital accumulation and earnings retention.
Operating cash flow fell from KRW 53.0 billion in 2022 to KRW 20.2 billion in 2023 before recovering to KRW 45.4 billion in 2024 and KRW 49.6 billion in 2025.
Quarterly results show pronounced seasonality: the second quarter of 2025 was profitable with revenue of KRW 171.0 billion, operating profit of KRW 1.3 billion and net income of KRW 1.9 billion, while the seasonally weak third quarter of 2025 swung to an operating loss of KRW 4.7 billion and a net loss of KRW 3.2 billion on revenue of KRW 128.3 billion.
Fourth-quarter 2025 figures were not disclosed on a standalone quarterly basis and are therefore not addressed in this report.
In the first quarter of 2026, the winter peak effect pushed revenue up to KRW 392.4 billion with operating profit surging to KRW 25.7 billion, but by the second quarter revenue contracted to KRW 161.0 billion and operating profit fell back to roughly KRW 2.7 billion, reconfirming the recurring seasonal swing pattern.
Korea's city gas industry is a regulated business with legally demarcated regional supply territories, where raw-material costs are linked to LNG import prices set by Korea Gas Corporation and the exchange rate, while distribution fees require approval from provincial price-stabilization committees.
As a result, individual city gas companies' margins depend heavily on how quickly cost increases are passed through to tariffs, and margins can be temporarily squeezed in quarters where there is a lag in adjustment.
Industry sources note that under the government's Green New Deal policy, natural gas is gaining prominence as a bridge fuel complementing coal and nuclear power.
Some analyses point out that how Korea Gas Corporation recovers accumulated receivables—built up when the government kept tariffs below cost during the 2022–2023 energy price spike—has become a key variable in future wholesale fee adjustments.
Daegu and North Gyeongsang, given stagnant population and industrial structure, are unlikely to see structurally high growth in city gas demand, but the region shows characteristics of a mature market capable of generating stable cash flow through its existing pipeline network.
In terms of competitive structure, regional supply territories form regional monopolies, so the company does not directly compete with operators in other regions such as Seoul City Gas or Kyungdong City Gas, and Daesung Energy retains its exclusive position in the Daegu, Gyeongsan, Goryeong and Chilgok territories.
The company held its 17th annual general meeting on March 26, 2026, addressing agenda items including the year-end dividend with a record date of December 31, 2025, and in April it announced a city gas cashback program in response to a resource security crisis alongside intensive safety inspections of heat transport pipelines.
Because city gas tariffs are periodically adjusted under the raw-material cost pass-through mechanism, primarily on odd-numbered months, the extent of future cost and margin swings will hinge on the trajectory of international LNG prices and the won-dollar exchange rate.
The Jukgok district combined heat and power plant, a community energy system supplying electricity and heat to roughly 11,000 households across apartments, schools and commercial facilities, continues to operate, and the company runs solar and other renewable and clean energy initiatives in parallel.
On the safety front, the company has strengthened on-site safety management, including special inspections of shared exhaust flues in aging apartment complexes in cooperation with Daegu Metropolitan City and the Korea Gas Safety Corporation.
At the group level, the company has completed construction of an integrated HR system, pursuing management efficiency across affiliated companies.
On the earnings side, winter peak-season demand and the timing lag in tariff adjustments are likely to remain the key variables shaping quarter-to-quarter results, and this will need to be confirmed through each quarterly disclosure.
The recent multi-year pattern of earnings moving from a net loss to a steadily expanding profit is a useful backdrop when assessing valuation.
The price-to-book ratio tends to trade at a discount to net asset value, which can be interpreted as reflecting the stable but modest-growth characteristics of a regional monopoly city gas business.
Where the current price-to-earnings level sits relative to past multi-year trading bands can continue to shift depending on the pace of earnings recovery and the timing lag in tariff adjustments.
On the dividend side, the company has a history of paying a year-end dividend annually, and the relative level is worth comparing against other regional city gas peers in the sector. Given the company's relatively small market capitalization, price swings tied to trading volume changes are also worth keeping in mind.
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 2026-09-04
Owner net income expanded every year, from KRW 14.9 billion in 2023 to KRW 17.3 billion in 2024 and KRW 24.6 billion in 2025. Operating margin also improved over the same period, from 2.0% to 2.1% to 3.0%. Compared with the net loss recorded in 2022, the recovery in overall profitability is clear.
The company holds a legally demarcated city gas supply territory across Daegu Metropolitan City, Gyeongsan, Goryeong and Chilgok, limiting direct in-territory competition.
City gas sales account for more than 97% of total revenue, and the government-notified tariff system that passes through cost changes further supports stability.
The debt ratio declined for four consecutive years, from 165.9% in 2022 to 128.9% in 2025. Owners' equity also rose over the same period, from KRW 313.8 billion to KRW 345.7 billion, reflecting ongoing balance sheet improvement through earnings accumulation.
The company posted an operating loss of KRW 4.7 billion and a net loss of KRW 3.2 billion in the third quarter of 2025, while operating profit reached KRW 25.7 billion in the first quarter of 2026.
The gap between the winter peak and summer trough seasons is large, making it difficult to judge the annual trend from any single quarter.
Annual revenue moved within a narrow range of KRW 995.1 billion to KRW 1,020.9 billion between 2022 and 2025. Given the population and industrial structure of the Daegu and North Gyeongsang region, structurally high growth in city gas demand appears difficult to expect, reflecting a mature market characteristic.
While city gas tariffs are adjusted periodically under the cost pass-through mechanism, a sudden move in international LNG prices or the exchange rate can compress margins during the adjustment lag.
The 2022 episode, when operating profit shrank to about KRW 0.94 billion during the energy price spike, illustrates this risk.
Retail city gas tariffs require approval from provincial price-stabilization committees, and government policies prioritizing price stability can delay the timing of cost pass-through. Some analyses suggest that how Korea Gas Corporation recovers accumulated receivables could affect future wholesale fee adjustments.
The purchase price of natural gas, the company's raw material, is linked to international LNG prices and the won-dollar exchange rate. A geopolitical shock or a sharp currency move could increase cost burdens during the adjustment lag.
City gas sales volume is heavily dependent on temperature, so an unusually warm winter or shifts in summer cooling demand can directly affect results. The earnings gap between the third quarter of 2025 and the first quarter of 2026 underscores this seasonal dependency.
Check the disclosure timing and content of third-quarter 2026 results to see whether summer off-season margins improved versus the year-earlier operating loss.
Check whether and by how much tariffs are adjusted around the odd-month cost pass-through cycle, to assess how changes in international LNG prices and the exchange rate have been reflected in costs.
Check whether an announcement sets a shareholder record date for the fiscal 2026 year-end dividend, to monitor whether the dividend policy continues.
Check the fiscal 2026 full-year earnings disclosure and the annual general meeting schedule, to see whether the multi-year earnings recovery extends to a fourth consecutive year.
Check for any additional disclosures or news regarding progress on the Jukgok district combined heat and power plant and related renewable energy projects.
Backed by an exclusive city gas supply franchise across the Daegu, Gyeongsan, Goryeong and Chilgok territories, Daesung Energy has shown a clear earnings recovery, moving from a net loss in 2022 to three consecutive years of expanding net income through 2025.
Over the same period, the debt ratio declined every year, accompanying an improving balance sheet.
However, because revenue remains concentrated in the city gas segment, the structural characteristics of tariff-adjustment timing lags and temperature-driven seasonal demand swings continue to sway quarterly results significantly.
The operating loss in the third quarter of 2025 followed by the large operating profit in the first quarter of 2026 reconfirmed this seasonality.
On growth, given the region's population and industrial structure, an approach of tracking stable cash flow and gradual earnings improvement through each quarterly disclosure appears more relevant than expecting structurally high growth.
Going forward, the key points to watch are the cadence of raw-material cost pass-through tariff adjustments, whether the dividend policy continues, and progress on the Jukgok district combined heat and power and renewable energy projects.
Report written 2026-09-05 · Data as of 2026-09-04
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