Buy Or Sell Opportunity • Jul 22
Now 28% overvalued Over the last 90 days, the stock has fallen 37% to ₩43,550. The fair value is estimated to be ₩34,034, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 6.7% in a year. Earnings are forecast to grow by 68% in the next year. Buy Or Sell Opportunity • Jun 29
Now 21% overvalued Over the last 90 days, the stock has fallen 28% to ₩41,250. The fair value is estimated to be ₩34,034, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 6.7% in a year. Earnings are forecast to grow by 68% in the next year. Buy Or Sell Opportunity • May 21
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 6.5% to ₩49,100. The fair value is estimated to be ₩40,402, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 89% in the next 2 years. Reported Earnings • Mar 18
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: ₩4,260 loss per share (down from ₩4,513 profit in FY 2024). Revenue: ₩2.46t (up 4.5% from FY 2024). Net loss: ₩61.4b (down 194% from profit in FY 2024). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 174%. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Mar 10
Now 32% overvalued after recent price rise Over the last 90 days, the stock has risen 143% to ₩57,500. The fair value is estimated to be ₩43,634, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 7.6% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 7.8% in 2 years. Earnings are forecast to grow by 59% in the next 2 years. Announcement • Mar 04
SGC Energy Co.,Ltd., Annual General Meeting, Mar 20, 2026 SGC Energy Co.,Ltd., Annual General Meeting, Mar 20, 2026, at 10:00 Tokyo Standard Time. Location: auditorium, 246, yangjae-daero, seocho-gu, seoul South Korea New Risk • Feb 27
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,700 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 20 April 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 7.2%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (3.3%). Declared Dividend • Nov 08
Dividend of ₩1,700 announced Dividend of ₩1,700 is the same as last year. Ex-date: 29th December 2025 Payment date: 20th April 2026 Dividend yield will be 7.7%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is not covered by earnings (366% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 22% per year over the past 8 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 307% to bring the payout ratio under control. However, EPS has declined by 23% over the last 5 years so the company would need to reverse this trend. Announcement • Nov 07
SGC Energy Co.,Ltd. announces Annual dividend, payable on April 20, 2026 SGC Energy Co.,Ltd. announced Annual dividend of KRW 1700.0000 per share payable on April 20, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Oct 15
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 366% Paying a dividend despite having no free cash flows. Earnings have declined by 13% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). New Risk • Aug 24
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 366% The company is paying a dividend despite having no free cash flows. Dividend yield: 7.3% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.1x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 366% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). New Risk • Mar 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 9.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.3x net interest cover). Earnings are forecast to decline by an average of 9.6% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Reported Earnings • Mar 15
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: ₩4,513 (up from ₩2,953 in FY 2023). Revenue: ₩2.35t (down 22% from FY 2023). Net income: ₩65.0b (up 54% from FY 2023). Profit margin: 2.8% (up from 1.4% in FY 2023). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 28%. Revenue is forecast to grow 5.7% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Mar 05
SGC Energy Co.,Ltd., Annual General Meeting, Mar 20, 2025 SGC Energy Co.,Ltd., Annual General Meeting, Mar 20, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 246, yangjae-daero, seocho-gu, seoul South Korea New Risk • Feb 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 13% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,700 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 14 April 2025. Payout ratio is a comfortable 29% but the company is not cash flow positive. Trailing yield: 6.6%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (3.6%). Declared Dividend • Nov 29
Dividend of ₩1,700 announced Shareholders will receive a dividend of ₩1,700. Ex-date: 27th December 2024 Payment date: 14th April 2025 Dividend yield will be 6.7%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is covered by earnings (29% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 25% per year over the past 7 years and payments have been stable during that time. EPS is expected to decline by 8.4% over the next 2 years. However, it would need to fall by 68% to increase the payout ratio to a potentially unsustainable range. Announcement • Oct 30
Korea GP Holdings Co., Ltd. signed a letter of intent to acquire SMG Energy Co., Ltd. from SGC Energy Co.,Ltd. (KOSE:A005090) for KRW 322.2 billion. Korea GP Holdings Co., Ltd. signed a letter of intent to acquire SMG Energy Co., Ltd. from SGC Energy Co.,Ltd. (KOSE:A005090) for KRW 322.2 billion on October 30, 2024. A cash consideration will be paid by Korea GP Holdings Co., Ltd. Korea GP Holdings Co., Ltd. will acquire 11 million shares of SMG Energy Co., Ltd. The transaction is subject to approval by regulatory board / committee. The expected completion of the transaction is December 20, 2024. New Risk • Aug 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Earnings are forecast to decline by an average of 1.7% per year for the foreseeable future. Minor Risk Paying a dividend despite having no free cash flows. Announcement • Jul 18
SGC Energy Co.,Ltd. to Report Q2, 2024 Results on Jul 23, 2024 SGC Energy Co.,Ltd. announced that they will report Q2, 2024 results on Jul 23, 2024 Major Estimate Revision • Apr 27
Consensus EPS estimates increase by 1,427%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from ₩2.68b to ₩2.56b. EPS estimate rose from ₩276 to ₩4,216. Net income forecast to grow 43% next year vs 8.5% growth forecast for Electric Utilities industry in South Korea. Consensus price target of ₩37,250 unchanged from last update. Share price rose 14% to ₩25,800 over the past week. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩26,350, the stock trades at a forward P/E ratio of 95x. Average forward P/E is 12x in the Electric Utilities industry in Asia. Total loss to shareholders of 33% over the past three years. Price Target Changed • Apr 04
Price target decreased by 8.4% to ₩37,250 Down from ₩40,667, the current price target is an average from 4 analysts. New target price is 72% above last closing price of ₩21,700. Stock is down 27% over the past year. The company is forecast to post earnings per share of ₩276 for next year compared to ₩2,953 last year. Reported Earnings • Mar 16
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: ₩2,953 (down from ₩8,093 in FY 2022). Revenue: ₩3.02t (up 7.1% from FY 2022). Net income: ₩42.1b (down 63% from FY 2022). Profit margin: 1.4% (down from 4.0% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 6.7%. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,700 per share at 6.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 6.1%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (3.9%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩2,330 (vs ₩1,603 in 3Q 2022) Third quarter 2023 results: EPS: ₩2,330 (up from ₩1,603 in 3Q 2022). Revenue: ₩800.5b (up 13% from 3Q 2022). Net income: ₩33.6b (up 50% from 3Q 2022). Profit margin: 4.2% (up from 3.2% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 1.1% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 8% per year. New Risk • Nov 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Earnings are forecast to decline by an average of 6.8% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buying Opportunity • Nov 17
Now 21% undervalued Over the last 90 days, the stock is up 10%. The fair value is estimated to be ₩35,870, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 58% over the last 3 years. Earnings per share has grown by 6.4%. Revenue is forecast to decline by 0.8% in 2 years. Earnings is forecast to grow by 15% in the next 2 years. Buying Opportunity • Sep 21
Now 21% undervalued Over the last 90 days, the stock is up 2.1%. The fair value is estimated to be ₩33,696, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 58% over the last 3 years. Earnings per share has grown by 6.4%. Revenue is forecast to decline by 4.8% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Buying Opportunity • Sep 05
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 7.8%. The fair value is estimated to be ₩32,065, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 58% over the last 3 years. Earnings per share has grown by 6.4%. Revenue is forecast to decline by 3.1% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Buying Opportunity • Jul 26
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 17%. The fair value is estimated to be ₩31,296, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 65% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 2.2% in 2 years. Earnings is forecast to grow by 36% in the next 2 years. Buying Opportunity • Jul 06
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be ₩31,296, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 65% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 2.2% in 2 years. Earnings is forecast to grow by 36% in the next 2 years. Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ₩606 (vs ₩2,582 in 1Q 2022) First quarter 2023 results: EPS: ₩606 (down from ₩2,582 in 1Q 2022). Revenue: ₩741.9b (up 20% from 1Q 2022). Net income: ₩8.44b (down 77% from 1Q 2022). Profit margin: 1.1% (down from 5.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 1.5% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 12
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: ₩8,093 (up from ₩4,270 in FY 2021). Revenue: ₩2.82t (up 49% from FY 2021). Net income: ₩112.8b (up 88% from FY 2021). Profit margin: 4.0% (up from 3.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is expected to decline by 3.3% p.a. on average during the next 2 years, while revenues in the Electric Utilities industry in Asia are expected to grow by 2.3%. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jan 31
SGC Energy Co.,Ltd. to Report Q4, 2022 Results on Jan 30, 2023 SGC Energy Co.,Ltd. announced that they will report Q4, 2022 results on Jan 30, 2023 Upcoming Dividend • Dec 21
Upcoming dividend of ₩1,500 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 4.4%. Within top quartile of South Korean dividend payers (3.3%). In line with average of industry peers (4.4%). Reported Earnings • Nov 20
Third quarter 2022 earnings released: EPS: ₩1,603 (vs ₩720 in 3Q 2021) Third quarter 2022 results: EPS: ₩1,603 (up from ₩720 in 3Q 2021). Revenue: ₩707.6b (up 79% from 3Q 2021). Net income: ₩22.3b (up 122% from 3Q 2021). Profit margin: 3.2% (up from 2.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target decreased to ₩47,000 Down from ₩130,000, the current price target is provided by 1 analyst. New target price is 36% above last closing price of ₩34,600. Stock is down 26% over the past year. The company is forecast to post earnings per share of ₩6,632 for next year compared to ₩4,270 last year. Valuation Update With 7 Day Price Move • May 24
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩38,550, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 17x in the Electric Utilities industry in Asia. Total returns to shareholders of 9.2% over the past three years. Reported Earnings • Mar 13
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: ₩4,270 (down from ₩10,752 in FY 2020). Revenue: ₩1.90t (up 197% from FY 2020). Net income: ₩59.9b (down 62% from FY 2020). Profit margin: 3.2% (down from 25% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 9.0%, compared to a 3.4% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,500 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 26 April 2022. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.3%. Within top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (4.1%). Announcement • Mar 12
SGC Energy Co.,Ltd., Annual General Meeting, Mar 26, 2021 SGC Energy Co.,Ltd., Annual General Meeting, Mar 26, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Feb 19
New 90-day high: ₩44,350 The company is up 23% from its price of ₩35,950 on 20 November 2020. The South Korean market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 8.0% over the same period. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 20% share price gain to ₩43,200, the stock is trading at a trailing P/E ratio of 42.1x, up from the previous P/E ratio of 35.2x. This compares to an average P/E of 15x in the Electric Utilities industry in Asia. Total return to shareholders over the past three years is a loss of 3.2%. Is New 90 Day High Low • Jan 04
New 90-day high: ₩42,800 The company is up 10.0% from its price of ₩39,000 on 06 October 2020. The South Korean market is up 21% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Electric Utilities industry, which is up 8.0% over the same period. Valuation Update With 7 Day Price Move • Nov 25
Market pulls back on stock over the past week After last week's 17% share price decline to ₩33,100, the stock is trading at a trailing P/E ratio of 18.9x, down from the previous P/E ratio of 22.8x. This compares to an average P/E of 12x in the Electric Utilities industry in Asia. Total return to shareholders over the past three years is a loss of 21%. Is New 90 Day High Low • Nov 24
New 90-day low: ₩33,250 The company is down 4.0% from its price of ₩34,500 on 26 August 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electric Utilities industry, which is up 1.0% over the same period.