Samchully(004690) is speeding up business expansion by injecting an additional 50 billion won into subsidiary Sung Gyung Food, known for "Jidopyo Seonggyeong Gim." It is broadening its reach from dining and car sales to investment in a seasoned seaweed manufacturer. Still, some noted that dividends stuck in place for a long time are deepening the undervaluation of the corporations' worth.
On the 28th, according to the electronic disclosure system, Samchully has maintained a cash dividend of 3,000 won per share for an extended period. Retained earnings and the retention ratio have steadily increased, but shareholder return policies have not changed much. Because of this, as Samchully recently additionally secured 2,384,359 shares of Sung Gyung Food for about 50 billion won, voices are growing that, before investing in new businesses, it should strengthen shareholder return measures such as increasing dividends.
With a 70-year history, Samchully has expanded beyond its core business of supplying city gas in the Seoul metropolitan area to dining and car sales. It is rolling out mobility operations through dining brands such as "Chai 797" and "Bareun Gogi Butcher Shop," Samchully Motors, an official BMW dealer, and Samchully EV, an official BYD seller. Based on its stable core business, revenue has hovered around 5 trillion won over the past three years. Net profit was 145.2 billion won in 2023, 121.7 billion won in 2024, and 131.3 billion won last year.
Despite a solid financial structure, the market cap is not much different from the past. In the 2010s, the market cap was around 400 billion won, and it remains in the 420 billion to 430 billion won range now. Samchully's current price-earnings ratio (PER) is about 3.8, and its price-to-book ratio (PBR) is about 0.2. These are indicators showing the current share price is low compared with earnings and net worth. It is below the PBR 0.8 level commonly cited in the market as undervalued.
Even with stable earnings and net worth, the market's low valuation of the corporations is attributed to insufficient shareholder returns such as dividends. Samchully's retention ratio rose from 7,539% in 2023 to 7,960% in 2024 and 8,473% last year. That means the amount of surplus accumulated in-house has grown relative to capital. Depending on shareholder return policies, there is room for the corporations' value to rise.
Yoo Jae-seon, an analyst at Hana Securities, said, "Dividends have stayed at 3,000 won per share for a long time, and because dividends are based on separate net profit, the payout ratio can vary depending on conditions," adding, "If dividends are made on a consolidation basis or if dividend policy is specified based on DPS (dividend per share), the share price is likely to be re-rated going forward."
Instead of increasing dividends with revenue, Samchully is focusing on expanding its businesses. The aim is to change the structure in which about 70% of revenue comes from supplying city gas in the Seoul metropolitan area. Beyond dining and mobility, it is pursuing carbon credit development, eco-friendly vehicle charging, and asset management through Samchully Asset Management focused on alternative investments in energy, renewable energy, and real estate.
Growth-focused investing is expected to continue. A Samchully official noted, "Given high volatility in the energy market, as the corporations' size and profitability grow, the benefits returning to shareholders can increase over the long term." The official added, "We have steadily paid dividends since listing," and explained, "We plan to continue a stable dividend policy while maintaining a balance between investment for future growth and shareholder returns."