Financials LG Chem, Ltd. Korea S.E.

Equities

A051915

KR7051911006

Commodity Chemicals

End-of-day quote Korea S.E. Other stock markets 23:00:00 20/06/2024 BST			5-day change	1st Jan Change
244,500 ^KRW	-2.59%		-4.12%	-21.38%

06-13	LG Chem Company and AVEO Oncology Announce LG Chem's First Proprietary Anti-Cancer Compound Enters Phase 1 Clinical Study, Dosing Initiated in the U.S	CI
06-06	Companies invest in EV battery factories in Europe	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	26,974,013	-	-
Enterprise Value (EV) ²	29,709	67,036	56,391	51,733	50,458	44,166	47,888	48,834
P/E ratio	77.7 x	69.1 x	13.1 x	25.3 x	29.2 x	15.8 x	7.77 x	4.96 x
Yield	0.63%	1.21%	1.95%	1.67%	0.7%	1.18%	2.09%	2.41%
Capitalization / Revenue	0.81 x	2 x	1.06 x	0.85 x	0.68 x	0.49 x	0.4 x	0.35 x
EV / Revenue	1.04 x	2.23 x	1.32 x	1 x	0.91 x	0.81 x	0.71 x	0.63 x
EV / EBITDA	10.8 x	14.4 x	7.17 x	8.09 x	7.78 x	5.7 x	4.19 x	3.27 x
EV / FCF	-9.53 x	220 x	-214 x	-6.6 x	-9.3 x	-8.62 x	-16.2 x	19.7 x
FCF Yield	-10.5%	0.46%	-0.47%	-15.1%	-10.7%	-11.6%	-6.16%	5.09%
Price to Book	1.46 x	3.5 x	1.99 x	1.34 x	1.09 x	0.8 x	0.73 x	0.64 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	355,500	355,500	355,500
Announcement Date	02/02/20	27/01/21	08/02/22	31/01/23	19/01/24	-	-	-

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	54,797	67,077	77,680
EBITDA ¹	2,754	4,665	7,866	6,392	6,487	7,755	11,434	14,931
EBIT ¹	895.6	2,353	5,025	2,996	2,529	2,973	6,037	9,413
Operating Margin	3.13%	7.83%	11.78%	5.78%	4.58%	5.42%	9%	12.12%
Earnings before Tax (EBT) ¹	560.6	1,503	4,891	2,813	2,498	2,645	5,420	8,332
Net income ¹	313.4	916.9	3,670	1,845	1,338	1,642	3,364	5,143
Net margin	1.09%	3.05%	8.6%	3.56%	2.42%	3%	5.01%	6.62%
EPS ²	4,085	11,926	47,108	23,670	17,086	22,553	45,730	71,687
Free Cash Flow ³	-3,117,102	305,041	-263,777	-7,836,408	-5,423,429	-5,122,654	-2,951,759	2,483,767
FCF margin	-10,889.42%	1,014.86%	-618.4%	-15,109.27%	-9,816.2%	-9,348.46%	-4,400.53%	3,197.42%
FCF Conversion (EBITDA)	-	6,538.93%	-	-	-	-	-	16,635.26%
FCF Conversion (Net income)	-	33,270.36%	-	-	-	-	-	48,298.12%
Dividend per Share ²	2,000	10,000	12,000	10,000	3,500	4,189	7,413	8,573
Announcement Date	02/02/20	27/01/21	08/02/22	31/01/23	19/01/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	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	2025 Q2
Net sales ¹	10,949	11,608	12,240	14,178	13,852	14,486	14,542	13,495	13,135	11,609	12,887	14,455	15,882	15,905	16,388
EBITDA ¹	1,534	-	1,697	1,777	1,099	-	1,597	1,860	1,309	1,342	1,710	2,258	2,734	-	-
EBIT ¹	748.4	1,024	878.5	901.2	191.3	791	615.6	860.4	247.4	264.6	513.9	983.5	1,216	1,284	1,357
Operating Margin	6.84%	8.82%	7.18%	6.36%	1.38%	5.46%	4.23%	6.38%	1.88%	2.28%	3.99%	6.8%	7.66%	8.07%	8.28%
Earnings before Tax (EBT) ¹	511.7	1,024	942.8	925.8	-79.33	916	780.5	576.2	217.8	323.3	416.3	895.8	1,106	-	-
Net income ¹	262.7	688.2	659.3	614.4	-116.5	474.2	524.9	420.2	-81.44	136.7	231	534.4	626.6	657.3	698.5
Net margin	2.4%	5.93%	5.39%	4.33%	-0.84%	3.27%	3.61%	3.11%	-0.62%	1.18%	1.79%	3.7%	3.95%	4.13%	4.26%
EPS ²	3,369	8,853	8,462	7,885	-1,509	6,072	6,700	5,364	-1,087	1,742	3,446	8,617	10,136	10,541	10,336
Dividend per Share ²	12,000	-	-	-	10,000	-	-	-	3,500	-	-	-	4,638	-	-
Announcement Date	08/02/22	27/04/22	27/07/22	31/10/22	31/01/23	26/04/23	27/07/23	30/10/23	19/01/24	30/04/24	-	-	-	-	-

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	17,192	20,914	21,860
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.358 x	1.482 x	1.399 x	1.168 x	1.98 x	2.217 x	1.829 x	1.464 x
Free Cash Flow ²	-3,117,102	305,041	-263,777	-7,836,408	-5,423,429	-5,122,654	-2,951,759	2,483,767
ROE (net income / shareholders' equity)	2.2%	5.94%	18.8%	7.24%	5.24%	4.78%	9.27%	12.2%
ROA (Net income/ Total Assets)	1.2%	2.88%	7.9%	3.1%	1.84%	2.57%	4.91%	7.12%
Assets ¹	26,114	31,801	46,453	59,555	72,720	63,858	68,460	72,224
Book Value Per Share ³	217,230	235,644	308,946	447,618	456,035	446,356	484,674	553,296
Cash Flow per Share ³	33,940	76,003	78,467	8,111	96,274	98,612	125,280	168,595
Capex ¹	6,238	5,300	5,774	8,406	12,960	12,558	11,577	11,394
Capex / Sales	21.79%	17.63%	13.54%	16.21%	23.46%	22.92%	17.26%	14.67%
Announcement Date	02/02/20	27/01/21	08/02/22	31/01/23	19/01/24	-	-	-

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

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

355,500 KRW

Average target price

565,897 KRW

Spread / Average Target

+59.18%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Plastics

	1st Jan change	Capi.
DOW INC.	-1.55%	37.97B
FORMOSA PLASTICS CORPORATION	-23.99%	11.83B
COVESTRO AG	-2.73%	10.33B
FORMOSA CHEMICALS & FIBRE CORPORATION	-15.89%	9.46B
THE SUPREME INDUSTRIES LIMITED	+29.09%	8.91B
HANGZHOU FIRST APPLIED MATERIAL CO., LTD.	-8.08%	5.72B
YUNNAN ENERGY NEW MATERIAL CO., LTD.	-39.11%	4.61B
LOTTE CHEMICAL CORPORATION	-24.93%	3.52B
ORBIA ADVANCE CORPORATION, S.A.B. DE C.V.	-26.48%	2.9B

Plastics