Korea Gas Shares Rally on Hydrogen Business Initiative

By Kwanwoo Jun

Korea Gas Corp. shares rallied on Tuesday after it unveiled a hydrogen business initiative which improved its earnings outlook.

Shares of the South Korean state-run natural gas supplier surged as much as 18% to 49,400 South Korean won in early trade before the gain was pared to 13%. In comparison, the benchmark Kospi stock index declined 0.9%.

The sharp rise came a day after the company outlined a plan to expand its business into hydrogen energy.

The firm, under its “KOGAS Vision 2030” initiative, aims to produce and supply 835,000 tons of hydrogen a year to South Korea and build 152 hydrogen charging stations by 2030.

Meritz Securities expects Korea Gas’s revenue from its hydrogen business will top KRW4 trillion ($3.4 billion) by 2030 and raised its stock target price by 11% to KRW51,000 while maintaining its buy rating.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

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