Financials LG Chem, Ltd.

Equities

A051910

KR7051910008

Commodity Chemicals

End-of-day quote Korea S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
373,500 ^KRW	+0.13%		+0.81%	-25.15%

Apr. 24	South Korean shares gain 2% as chip, battery stocks rally	RE
Apr. 24	LG Chem denies report it will merge naphtha business with Lotte Chemical	RE

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	23,215,757	60,124,057	45,386,506	44,266,854	37,614,917	28,352,233	-	-
Enterprise Value (EV) ²	29,709	67,036	56,391	51,733	50,458	44,561	48,181	48,562
P/E ratio	77.7 x	69.1 x	13.1 x	25.3 x	29.2 x	15.4 x	7.53 x	5.31 x
Yield	0.63%	1.21%	1.95%	1.67%	0.7%	1.6%	2.31%	4.48%
Capitalization / Revenue	0.81 x	2 x	1.06 x	0.85 x	0.68 x	0.5 x	0.4 x	0.35 x
EV / Revenue	1.04 x	2.23 x	1.32 x	1 x	0.91 x	0.78 x	0.68 x	0.59 x
EV / EBITDA	10.8 x	14.4 x	7.17 x	8.09 x	7.78 x	5.61 x	4.07 x	3.23 x
EV / FCF	-9.53 x	220 x	-214 x	-6.6 x	-9.3 x	-7.85 x	-15.8 x	14.2 x
FCF Yield	-10.5%	0.46%	-0.47%	-15.1%	-10.7%	-12.7%	-6.35%	7.06%
Price to Book	1.46 x	3.5 x	1.99 x	1.34 x	1.09 x	0.82 x	0.75 x	0.65 x
Nbr of stocks (in thousands)	76,612	77,086	77,891	77,908	78,275	78,275	-	-
Reference price ³	317,500	824,000	615,000	600,000	499,000	373,500	373,500	373,500
Announcement Date	2/2/20	1/27/21	2/8/22	1/31/23	1/19/24	-	-	-

¹KRW in Million²KRW in Billions³KRW

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	28,625	30,057	42,655	51,865	55,250	57,259	70,347	81,876
EBITDA ¹	2,754	4,665	7,866	6,392	6,487	7,948	11,839	15,042
EBIT ¹	895.6	2,353	5,025	2,996	2,529	3,238	6,541	10,013
Operating Margin	3.13%	7.83%	11.78%	5.78%	4.58%	5.65%	9.3%	12.23%
Earnings before Tax (EBT) ¹	560.6	1,503	4,891	2,813	2,498	2,910	5,985	8,391
Net income ¹	313.4	916.9	3,670	1,845	1,338	1,792	3,692	5,192
Net margin	1.09%	3.05%	8.6%	3.56%	2.42%	3.13%	5.25%	6.34%
EPS ²	4,085	11,926	47,108	23,670	17,086	24,235	49,617	70,295
Free Cash Flow ³	-3,117,102	305,041	-263,777	-7,836,408	-5,423,429	-5,678,581	-3,058,571	3,428,500
FCF margin	-10,889.42%	1,014.86%	-618.4%	-15,109.27%	-9,816.2%	-9,917.35%	-4,347.85%	4,187.42%
FCF Conversion (EBITDA)	-	6,538.93%	-	-	-	-	-	22,792.73%
FCF Conversion (Net income)	-	33,270.36%	-	-	-	-	-	66,036.88%
Dividend per Share ²	2,000	10,000	12,000	10,000	3,500	5,988	8,617	16,718
Announcement Date	2/2/20	1/27/21	2/8/22	1/31/23	1/19/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	10,610	10,949	11,608	12,240	14,178	13,852	14,486	14,542	13,495	13,135	12,187	13,423	14,853	16,357	17,899
EBITDA ¹	1,466	1,534	-	1,697	1,777	1,099	-	1,597	1,860	1,309	1,164	1,710	2,258	2,734	-
EBIT ¹	726.6	748.4	1,024	878.5	901.2	191.3	791	615.6	860.4	247.4	241	639.6	1,062	1,284	1,400
Operating Margin	6.85%	6.84%	8.82%	7.18%	6.36%	1.38%	5.46%	4.23%	6.38%	1.88%	1.98%	4.76%	7.15%	7.85%	7.82%
Earnings before Tax (EBT) ¹	737.5	511.7	1,024	942.8	925.8	-79.33	916	780.5	576.2	217.8	106.8	507.5	962.2	1,216	1,095
Net income ¹	610.1	262.7	688.2	659.3	614.4	-116.5	474.2	524.9	420.2	-81.44	82.44	385.8	602.9	735.7	740.2
Net margin	5.75%	2.4%	5.93%	5.39%	4.33%	-0.84%	3.27%	3.61%	3.11%	-0.62%	0.68%	2.87%	4.06%	4.5%	4.14%
EPS ²	7,832	3,369	8,853	8,462	7,885	-1,509	6,072	6,700	5,364	-1,087	2,121	6,259	9,665	10,188	12,601
Dividend per Share ²	-	12,000	-	-	-	10,000	-	-	-	3,500	-	-	-	5,123	-
Announcement Date	10/25/21	2/8/22	4/27/22	7/27/22	10/31/22	1/31/23	4/26/23	7/27/23	10/30/23	1/19/24	-	-	-	-	-

¹KRW in Billions²KRW

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	6,493	6,912	11,005	7,467	12,843	16,208	19,829	20,210
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.358 x	1.482 x	1.399 x	1.168 x	1.98 x	2.039 x	1.675 x	1.344 x
Free Cash Flow ²	-3,117,102	305,041	-263,777	-7,836,408	-5,423,429	-5,678,581	-3,058,571	3,428,500
ROE (net income / shareholders' equity)	2.2%	5.94%	18.8%	7.24%	5.24%	5.24%	10.1%	12.5%
ROA (Net income/ Total Assets)	1.2%	2.88%	7.9%	3.1%	1.84%	2.75%	5.18%	7.77%
Assets ¹	26,114	31,801	46,453	59,555	72,720	65,116	71,321	66,795
Book Value Per Share ³	217,230	235,644	308,946	447,618	456,035	457,067	495,971	571,904
Cash Flow per Share ³	33,940	76,003	78,467	8,111	96,274	96,213	126,025	166,523
Capex ¹	6,238	5,300	5,774	8,406	12,960	12,712	12,005	11,359
Capex / Sales	21.79%	17.63%	13.54%	16.21%	23.46%	22.2%	17.07%	13.87%
Announcement Date	2/2/20	1/27/21	2/8/22	1/31/23	1/19/24	-	-	-

¹KRW in Billions²KRW in Million³KRW

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for LG Chem, Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

373,500 KRW

Average target price

597,345 KRW

Spread / Average Target

+59.93%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Plastics

	1st Jan change	Capi.
LG CHEM, LTD.	-25.15%	20.6B
FORMOSA PLASTICS CORPORATION	-14.52%	13.21B
COVESTRO AG	-8.75%	9.69B
FORMOSA CHEMICALS & FIBRE CORPORATION	-13.48%	9.66B
THE SUPREME INDUSTRIES LIMITED	+8.30%	6.61B
HANGZHOU FIRST APPLIED MATERIAL CO., LTD.	+3.01%	6.42B
YUNNAN ENERGY NEW MATERIAL CO., LTD.	-30.31%	5.29B
ORBIA ADVANCE CORPORATION, S.A.B. DE C.V.	-21.00%	3.3B
LOTTE CHEMICAL CORPORATION	-34.73%	3.06B
KINGFA SCI. & TECH. CO., LTD.	-9.14%	2.68B

Plastics