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Photo = Korea Gas Corporation |
[Alpha Biz= Reporter Kim Sangjin] Hana Securities raised its target price for Korea Gas Corporation (KOGAS) from 35,000 KRW to 55,000 KRW on the 11th.
The brokerage stated, "Considering the slowdown in cumulative rate after the August 2024 civilian gas rate hike and the government's fiscal shortfall, there is a significant possibility that dividends will resume."
Starting from August 1, 2024, residential gas rates will increase by 6.8%, excluding supply costs of 0.3647 won/MJ, with a raw material cost increase of 1.0453 won/MJ. This is similar to May 2023's level of 1.0356 won/MJ.
According to Hana Securities, "With this increase, residential gas raw material costs are approaching cost levels, but considering interest costs, overall accounts receivable are still accumulating." They added, "Future fluctuations in oil prices and exchange rates will determine the increase or decrease."
Hana Securities further commented, "Future attention may be drawn to domestic E&P projects, but due to the regulatory nature of the business, meaningful increases in tariff bases and medium to long-term profit momentum need to be monitored."
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
