Major Estimate Revision • May 12
Consensus EPS estimates increase by 36% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from ₩3.65b to ₩3.87b. EPS estimate increased from ₩15,988 to ₩21,702 per share. Net income forecast to shrink 23% next year vs 6.3% growth forecast for Electric Utilities industry in South Korea . Consensus price target of ₩127,500 unchanged from last update. Share price fell 3.3% to ₩73,800 over the past week. Announcement • May 07
Korea District Heating Corp. to Report Q1, 2026 Results on May 08, 2026 Korea District Heating Corp. announced that they will report Q1, 2026 results on May 08, 2026 Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩75,100, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Electric Utilities industry in Asia. Total returns to shareholders of 224% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩43,152 per share. Reported Earnings • Mar 18
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: ₩28,102 (up from ₩16,850 in FY 2024). Revenue: ₩4.00t (up 12% from FY 2024). Net income: ₩338.9b (up 61% from FY 2024). Profit margin: 8.5% (up from 5.9% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) also missed analyst estimates by 3.9%. Revenue is expected to decline by 3.4% p.a. on average during the next 2 years, while revenues in the Electric Utilities industry in Asia are expected to grow by 5.7%. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 50% per year, which means it is significantly lagging earnings growth. Declared Dividend • Feb 28
Dividend increased to ₩6,157 Dividend of ₩6,157 is 59% higher than last year. Ex-date: 27th March 2026 Payment date: 1st January 1970 Dividend yield will be 6.6%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has increased by an average of 4.7% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to decline by 49% over the next 2 years. However, it would need to fall by 85% to increase the payout ratio to a potentially unsustainable range. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩93,100, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 13x in the Electric Utilities industry in Asia. Total returns to shareholders of 240% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩44,046 per share. Announcement • Feb 12
Korea District Heating Corp., Annual General Meeting, Mar 26, 2026 Korea District Heating Corp., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 368, bundang-ro, bundang-gu, gyeonggi-do, seongnam South Korea Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: ₩3,928 (vs ₩2,486 in 3Q 2024) Third quarter 2025 results: EPS: ₩3,928 (up from ₩2,486 in 3Q 2024). Revenue: ₩758.2b (up 30% from 3Q 2024). Net income: ₩49.0b (up 51% from 3Q 2024). Profit margin: 6.5% (up from 5.6% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Asia are expected to grow by 7.4%. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 56% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩112,050, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 14x in the Electric Utilities industry in Asia. Total returns to shareholders of 343% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩63,680 per share. Announcement • Nov 05
Korea District Heating Corp. to Report Nine Months, 2025 Results on Nov 07, 2025 Korea District Heating Corp. announced that they will report nine months, 2025 results on Nov 07, 2025 Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩101,700, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Electric Utilities industry in Asia. Total returns to shareholders of 320% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩62,934 per share. Reported Earnings • Aug 15
Second quarter 2025 earnings released: ₩2,188 loss per share (vs ₩3,054 loss in 2Q 2024) Second quarter 2025 results: ₩2,188 loss per share (improved from ₩3,054 loss in 2Q 2024). Revenue: ₩623.1b (up 17% from 2Q 2024). Net loss: ₩21.6b (loss narrowed 32% from 2Q 2024). Revenue is forecast to stay flat during the next 3 years compared to a 9.1% growth forecast for the Electric Utilities industry in Asia. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. New Risk • Aug 07
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 8.3% 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 Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.3% average weekly change). Profit margins are more than 30% lower than last year (7.6% net profit margin). Announcement • Aug 05
Korea District Heating Corp. to Report First Half, 2025 Results on Aug 07, 2025 Korea District Heating Corp. announced that they will report first half, 2025 results on Aug 07, 2025 Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩87,400, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 13x in the Electric Utilities industry in Asia. Total returns to shareholders of 205% over the past three years. New Risk • May 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% 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 (13% operating cash flow to total debt). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.6% net profit margin). Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩63,000, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 14x in the Electric Utilities industry in Asia. Total returns to shareholders of 99% over the past three years. New Risk • Mar 13
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 7.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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 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 24% 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. Announcement • Feb 22
Korea District Heating Corp., Annual General Meeting, Mar 31, 2025 Korea District Heating Corp., Annual General Meeting, Mar 31, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 368, bundang-ro, bundang-gu, gyeonggi-do, seongnam South Korea New Risk • Dec 19
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 24% 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 24% per year for the foreseeable future. New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. New Risk • Dec 07
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 41% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings are forecast to decline by an average of 25% per year for the foreseeable future. High level of non-cash earnings (41% accrual ratio). Minor Risk Less than 3 years of financial data is available. Major Estimate Revision • Nov 20
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ₩16,816 to ₩18,617. Revenue forecast steady at ₩3.69b. Net income forecast to shrink 48% next year vs 11% growth forecast for Electric Utilities industry in South Korea . Consensus price target of ₩78,000 unchanged from last update. Share price rose 7.8% to ₩50,900 over the past week. Buy Or Sell Opportunity • Aug 26
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 5.0% to ₩48,500. The fair value is estimated to be ₩39,640, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to decline by 52% in the next 2 years. Announcement • Jul 18
Samchully Co.,Ltd (KOSE:A004690) acquired remaining 49% stake in Human Community Energy System from Korea District Heating Corp. (KOSE:A071320) for KRW 28.9 billion. Samchully Co.,Ltd (KOSE:A004690) acquired remaining 49% stake in Human Community Energy System from Korea District Heating Corp. (KOSE:A071320) for KRW 28.9 billion on July 16, 2024. Samchully acquired 4.9 million shares for KRW 5910 per share.
Samchully Co.,Ltd (KOSE:A004690) completed the acquisition of remaining 49% stake in Human Community Energy System from Korea District Heating Corp. (KOSE:A071320) on July 16, 2024. New Risk • Jul 01
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 7.6% 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 Debt is not well covered by operating cash flow (6.7% operating cash flow to total debt). Earnings are forecast to decline by an average of 23% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (7.6% average weekly change). New Risk • Jun 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 23% 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 (6.7% operating cash flow to total debt). Earnings are forecast to decline by an average of 23% per year for the foreseeable future. New Risk • May 25
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 28% 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 (6.7% operating cash flow to total debt). Earnings are forecast to decline by an average of 28% per year for the foreseeable future. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩45,600, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 12x in the Electric Utilities industry in Asia. Total returns to shareholders of 7.7% over the past three years. New Risk • Mar 28
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (12% average weekly change). New Risk • Feb 19
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 Less than 1 year of cash runway based on free cash flow trend (-₩744b free cash flow). 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). Reported Earnings • May 20
First quarter 2023 earnings released: ₩7,227 loss per share (vs ₩10,404 loss in 1Q 2022) First quarter 2023 results: ₩7,227 loss per share (improved from ₩10,404 loss in 1Q 2022). Revenue: ₩1.66t (up 20% from 1Q 2022). Net loss: ₩82.3b (loss narrowed 31% from 1Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 24
Full year 2022 earnings released: ₩16,347 loss per share (vs ₩1,399 profit in FY 2021) Full year 2022 results: ₩16,347 loss per share (down from ₩1,399 profit in FY 2021). Revenue: ₩4.17t (up 65% from FY 2021). Net loss: ₩183.9b (down ₩205.3b from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 97 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 21
Upcoming dividend of ₩797 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 02 May 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (4.4%). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. No independent directors (8 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. No independent directors (8 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩965 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 April 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.5%. Within top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (4.1%). Is New 90 Day High Low • Feb 26
New 90-day low: ₩36,950 The company is down 8.0% from its price of ₩40,050 on 27 November 2020. The South Korean market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electric Utilities industry, which is up 8.0% over the same period. Announcement • Feb 25
Korea District Heating Corp., Annual General Meeting, Mar 30, 2021 Korea District Heating Corp., Annual General Meeting, Mar 30, 2021, at 10:00 Korea Standard Time. Announcement • Feb 04
Korea District Heating Corp. to Report Fiscal Year 2020 Results on Feb 15, 2021 Korea District Heating Corp. announced that they will report fiscal year 2020 results on Feb 15, 2021 Is New 90 Day High Low • Dec 17
New 90-day high: ₩40,950 The company is up 14% from its price of ₩35,800 on 18 September 2020. The South Korean market is also up 14% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Electric Utilities industry, which is up 3.0% over the same period. Is New 90 Day High Low • Nov 13
New 90-day high: ₩40,350 The company is up 13% from its price of ₩35,600 on 14 August 2020. The South Korean market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 2.0% over the same period. Announcement • Nov 07
Korea District Heating Corp. to Report Nine Months, 2020 Results on Nov 11, 2020 Korea District Heating Corp. announced that they will report nine months, 2020 results on Nov 11, 2020 Is New 90 Day High Low • Oct 19
New 90-day high: ₩39,600 The company is up 9.0% from its price of ₩36,400 on 21 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electric Utilities industry, which is up 1.0% over the same period. Announcement • Aug 09
Korea District Heating Corp. to Report First Half, 2020 Results on Aug 11, 2020 Korea District Heating Corp. announced that they will report first half, 2020 results on Aug 11, 2020