# Korea District Heating (071320.KO)

Canonical: https://gigainvestors.com/s/071320.KO

Analysis as of: 2026-10-16T07:45:44.761Z. Financial observations: FY2016–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 76,900.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 1.30×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.09×

- FY2017: 0.07×

- FY2018: 0.01×

- FY2019: 0.02×

- FY2020: 0.06×

- FY2021: 0.02×

- FY2022: -0.10×

- FY2023: 0.08×

- FY2024: 0.09×

- FY2025: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.6%

- ROIC, second-lowest year: 0.3%

- Typical minus recent gross margin: -1.2 pp

- Typical gross margin (annual median): 10.9%

- Recent gross margin (lower of latest and 3-year median): 12.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.5%

- ROIC including acquisitions, ten-year median: -3.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.0%

- FY2017: 2.2%

- FY2018: 0.3%

- FY2019: 0.7%

- FY2020: 2.9%

- FY2021: 0.6%

- FY2022: -6.1%

- FY2023: 4.4%

- FY2024: 4.0%

- FY2025: 6.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -0.24×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW -139B

- Net income, five-year total: KRW 586B

- Return on incremental invested capital: 12.8%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -3.8 pp

- Working capital / revenue, final three-year average: 7.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -0.09×

- FY2022: 1.13×

- FY2023: -0.76×

- FY2024: -0.61×

- FY2025: 1.03×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.2% vs 4.4%

- Per-share earnings: -2209.21 to 16850.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.8%

- Market cap gain: KRW 317B

- Cumulative retained earnings: KRW 225B

- Diluted shares, 5-year annual growth: 0.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 19K

- Per-share value, starting three-year median: KRW -2K

- Per-share value, ending three-year median: KRW 17K

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 3.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: KRW 558B

- ROIC, first three-year median: 2.2%

- ROIC, last three-year median: 4.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 6K

- FY2018: KRW -20K

- FY2019: KRW -2K

- FY2020: KRW 2K

- FY2021: KRW 2K

- FY2022: KRW -16K

- FY2023: KRW 17K

- FY2024: KRW 17K

- FY2025: KRW 28K

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 0.80×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.00×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -6.6%

- FY2018: -10.8%

- FY2019: -3.6%

- FY2020: -5.8%

- FY2021: -6.1%

- FY2022: -2.7%

- FY2023: 4.3%

- FY2024: -2.5%

- FY2025: -4.1%

## Holders

## Price story

Down 29% since Nov 2025 · sales +12%

Story as of 2026-10-16T10:00:13.499Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +12%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 1.72T 

- FY2017: KRW 1.83T 

- FY2018: KRW 2.49T 

- FY2019: KRW 2.37T 

- FY2020: KRW 2.10T 

- FY2021: KRW 2.54T 

- FY2022: KRW 4.17T 

- FY2023: KRW 3.95T 

- FY2024: KRW 3.57T 

- FY2025: KRW 4.00T 

### Gross margin · FY2025

gross margin 15.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.9% 

- FY2017: 11.4% 

- FY2018: 4.6% 

- FY2019: 6.1% 

- FY2020: 11.6% 

- FY2021: 6.0% 

- FY2023: 10.5% 

- FY2024: 12.1% 

- FY2025: 15.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities renewable; annual sales are KRW 4 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2025: revenue 3998187000000; grossProfit 637607000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 071320.KO: Korea District Heating Corp. engages in the district cooling and heating businesses in South Korea. It is also involved in the community energy system and electricity businesses. The company operates combined heat and power plants. In addition, it engages in the supply of new and renewable energy, such as photovoltaic, wind power, waste energy, woodchip, hydrogen energy and fuel cell, and others. It also offers public development assistance projects and loan program projects in various developing countries. The company was incorporated in 1985 and is headquartered in Seongnam-si, South Korea.

### Why customers stay

Margins ranged from 10.5% to 15.9% during 2023–25; it earns 2.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2023: grossProfit / revenue = 10.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2024: grossProfit / revenue = 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2025: grossProfit / revenue = 15.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); 10-year return on capital observations [[2016,0.030421096950616035],[2017,0.022460917535622023],[2018,0.0027016888888907182],[2019,0.0073891501325752135],[2020,0.02868585830778596],[2021,0.006162622658560914],[2022,-0.06128491090528019],[2023,0.04400089192383221],[2024,0.04005553030623312],[2025,0.06205608369122582]]; median 0.025573387921703994. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back KRW 31.4 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2025: growth capex 0; upkeep 333877000000; owner earnings 350600800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); Dividend observations: [[2016,41915053280],[2017,43999227200],[2018,32652058080],[2019,1736250000],[2020,1736250000],[2021,18118487960],[2022,16173258960],[2023,10740000000],[2024,19595000000],[2025,62464000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); FY2025: cash repurchases 31392913337.5 KRW.

### Are managers owners

Insiders own 77.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 071320.KO SharesStats.PercentInsiders = 77.45100000000001 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:44.761Z); Closing price 76900 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 331548.2146242245; price multiple 0.2319421327216561. FY2025 cash earnings/share 29073.44486033915. Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 69,000.00 per share

- 2016-11: KRW 69,600.00 per share

- 2016-12: KRW 68,100.00 per share

- 2017-01: KRW 66,500.00 per share

- 2017-02: KRW 66,500.00 per share

- 2017-03: KRW 66,900.00 per share

- 2017-04: KRW 70,600.00 per share

- 2017-05: KRW 73,700.00 per share

- 2017-06: KRW 78,200.00 per share

- 2017-07: KRW 77,400.00 per share

- 2017-08: KRW 76,500.00 per share

- 2017-09: KRW 73,600.00 per share

- 2017-10: KRW 71,800.00 per share

- 2017-11: KRW 73,800.00 per share

- 2017-12: KRW 73,000.00 per share

- 2018-01: KRW 77,200.00 per share

- 2018-02: KRW 83,000.00 per share

- 2018-03: KRW 84,200.00 per share

- 2018-04: KRW 80,500.00 per share

- 2018-05: KRW 67,800.00 per share

- 2018-06: KRW 66,600.00 per share

- 2018-07: KRW 65,300.00 per share

- 2018-08: KRW 65,000.00 per share

- 2018-09: KRW 64,100.00 per share

- 2018-10: KRW 56,900.00 per share

- 2018-11: KRW 60,000.00 per share

- 2018-12: KRW 57,000.00 per share

- 2019-01: KRW 57,600.00 per share

- 2019-02: KRW 59,700.00 per share

- 2019-03: KRW 61,000.00 per share

- 2019-04: KRW 57,500.00 per share

- 2019-05: KRW 51,800.00 per share

- 2019-06: KRW 52,100.00 per share

- 2019-07: KRW 54,200.00 per share

- 2019-08: KRW 50,200.00 per share

- 2019-09: KRW 49,900.00 per share

- 2019-10: KRW 49,100.00 per share

- 2019-11: KRW 48,400.00 per share

- 2019-12: KRW 47,300.00 per share

- 2020-01: KRW 41,700.00 per share

- 2020-02: KRW 38,200.00 per share

- 2020-03: KRW 31,000.00 per share

- 2020-04: KRW 38,600.00 per share

- 2020-05: KRW 39,150.00 per share

- 2020-06: KRW 32,450.00 per share

- 2020-07: KRW 34,150.00 per share

- 2020-08: KRW 33,950.00 per share

- 2020-09: KRW 35,050.00 per share

- 2020-10: KRW 36,300.00 per share

- 2020-11: KRW 39,950.00 per share

- 2020-12: KRW 40,350.00 per share

- 2021-01: KRW 37,650.00 per share

- 2021-02: KRW 36,950.00 per share

- 2021-03: KRW 38,350.00 per share

- 2021-04: KRW 42,500.00 per share

- 2021-05: KRW 43,750.00 per share

- 2021-06: KRW 43,750.00 per share

- 2021-07: KRW 42,350.00 per share

- 2021-08: KRW 40,400.00 per share

- 2021-09: KRW 44,100.00 per share

- 2021-10: KRW 41,300.00 per share

- 2021-11: KRW 36,500.00 per share

- 2021-12: KRW 38,750.00 per share

- 2022-01: KRW 35,500.00 per share

- 2022-02: KRW 35,600.00 per share

- 2022-03: KRW 36,450.00 per share

- 2022-04: KRW 36,200.00 per share

- 2022-05: KRW 34,900.00 per share

- 2022-06: KRW 31,150.00 per share

- 2022-07: KRW 32,100.00 per share

- 2022-08: KRW 31,700.00 per share

- 2022-09: KRW 29,300.00 per share

- 2022-10: KRW 26,150.00 per share

- 2022-11: KRW 28,000.00 per share

- 2022-12: KRW 28,500.00 per share

- 2023-01: KRW 31,550.00 per share

- 2023-02: KRW 28,150.00 per share

- 2023-03: KRW 26,900.00 per share

- 2023-04: KRW 27,800.00 per share

- 2023-05: KRW 26,300.00 per share

- 2023-06: KRW 26,300.00 per share

- 2023-07: KRW 25,300.00 per share

- 2023-08: KRW 25,550.00 per share

- 2023-09: KRW 24,650.00 per share

- 2023-10: KRW 23,150.00 per share

- 2023-11: KRW 24,100.00 per share

- 2023-12: KRW 24,450.00 per share

- 2024-01: KRW 33,000.00 per share

- 2024-02: KRW 46,150.00 per share

- 2024-03: KRW 36,600.00 per share

- 2024-04: KRW 40,300.00 per share

- 2024-05: KRW 44,800.00 per share

- 2024-06: KRW 49,100.00 per share

- 2024-07: KRW 47,700.00 per share

- 2024-08: KRW 49,050.00 per share

- 2024-09: KRW 47,900.00 per share

- 2024-10: KRW 45,800.00 per share

- 2024-11: KRW 59,100.00 per share

- 2024-12: KRW 41,400.00 per share

- 2025-01: KRW 42,250.00 per share

- 2025-02: KRW 49,550.00 per share

- 2025-03: KRW 49,550.00 per share

- 2025-04: KRW 52,900.00 per share

- 2025-05: KRW 78,900.00 per share

- 2025-06: KRW 83,800.00 per share

- 2025-07: KRW 86,500.00 per share

- 2025-08: KRW 76,900.00 per share

- 2025-09: KRW 90,300.00 per share

- 2025-10: KRW 95,700.00 per share

- 2025-11: KRW 107,900.00 per share

- 2025-12: KRW 96,400.00 per share

- 2026-01: KRW 99,800.00 per share

- 2026-02: KRW 93,200.00 per share

- 2026-03: KRW 72,200.00 per share

- 2026-04: KRW 76,500.00 per share

- 2026-05: KRW 71,500.00 per share

- 2026-06: KRW 64,600.00 per share

- 2026-07: KRW 67,100.00 per share

- 2026-08: KRW 76,400.00 per share

- 2026-09: KRW 78,700.00 per share

- 2026-10: KRW 77,200.00 per share

## Annual estimated value (KRW per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.