- September 28, 2021
- Posted by: Stratford Team
- Category: Business
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 firstname.lastname@example.org