LS Networks is a diversified holding-style company that runs several very different businesses together: the sports brand Pro-Specs, distribution of bicycles and imported cars, a real-estate rental business that leases out its buildings and land, and, since acquiring about 61% of LS Securities in 2024, a securities operation as well. A large share of the revenue and assets on its financial statements comes from that securities subsidiary. Through 2026 a turn to profit was confirmed in stages: a February disclosure of a change in earnings structure flagged a 2025 net loss of ₩31.9 billion, then the May first-quarter report showed a swing to a net profit of ₩26.4 billion, and a March shareholder meeting and CEO change reorganized management. What stands out lately is that the low valuation (a P/B of 0.24x and a forward P/E of about 4.3x) and revenue diversified across brands, real estate, and finance are strengths, while much of the profit comes from securities trading and fees, so quarterly results can swing with equity markets, and a current ratio of 97% means short-term liquidity is not especially ample.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 1309.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 97.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 35.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 283.8% higher than a year earlier.
- ROE is -3.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.9%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder E1 81.79% (corporate)
Controlling bloc incl. related parties 81.8%
With the controlling bloc holding 82%, control is very secure but the free float is thin.
🔎 In-depth analysis
- LS Networks is not a single-business company but a diversified group running several operations of different character together.
- First, it directly runs the sports brand Pro-Specs and imports and sells bicycles, Toyota and Lexus cars, and motorcycles, a brand and distribution business.
- Second, it leases out its buildings and land and collects rent, a real-estate business that generates steady cash.
- Third, by securing about 61% of LS Securities in 2024, it added a securities (finance) business to its consolidated results.
- As a result, a large share of the revenue and assets shown on its statements comes from the securities subsidiary, and these three pillars ride different economic cycles to balance the company's results.
- The latest close is ₩2,790 and the market cap is ₩219.9 billion.
- The price sits below its 20-day line (₩2,940) and below its 60-day line (₩3,412).
- Trading below both its short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (an auxiliary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 39.0, a neutral level.
- The one-month change is -9.8%, the three-month change is -10.0%, and the price sits -39.7% from its 52-week high.
- Relative strength versus the KOSPI is 9 (on a 1-99 scale, computed from the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 91% of all stocks by strength.
- Over the past three months it has trailed the index by 29.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The P/B (share price divided by net assets per share) is 0.25x, meaning it trades at just over a quarter of its book net assets (₩11,325 per share).
- Because 2025 carried a net loss of ₩31.9 billion, the trailing P/E (share price divided by one year's earnings) cannot be calculated, and the ROE (annual return on equity) on the same basis was -3.6%.
- But the company had already swung to profit in the first quarter of 2026, so judging value on the loss numbers alone risks missing the picture.
- On the post-turnaround forward earnings, the P/E is around 4.3x, low even against similar operating-holding names.
- A debt ratio (debt to equity) of 1,309% looks very high, but that is an optical distortion created when the securities subsidiary is consolidated.
- The securities industry inherently carries large customer deposits and trading-related liabilities in the normal course of business, so applying a manufacturer's or distributor's debt-ratio yardstick makes the risk look greater than it actually is.
- The top line has grown quickly.
- 2025 revenue rose 35.2% year on year to ₩2.6 trillion, and the five-year revenue CAGR reaches 60.9%.
- Operating profit held positive at ₩22.3 billion in 2025, but net profit had been in the red for two straight years, and the clear turn came in the first quarter of 2026.
- Cumulative revenue was ₩1.7 trillion (+283.8% versus the same period a year earlier), operating profit ₩43.3 billion, and net profit ₩26.4 billion, a swing to profit, with a single quarter's net profit more than covering the full prior year's loss.
- This year's earnings reach this level because LS Securities' fee and trading income is recovering and lifting the consolidated result, while brands and real estate add stable cash.
- In other words, it is not a single-segment rebound but a structure supported by all three pillars together.
- Since the loss numbers of last year cannot show the size of profit, this year is best viewed on post-turnaround forward earnings.
- Through 2026 the turn to profit was confirmed in stages.
- In February a disclosure of a change in earnings structure flagged the 2025 loss (net loss of ₩31.9 billion), which was finalized in the March annual report.
- Then the May first-quarter report showed a swing to a net profit of ₩26.4 billion in the numbers.
- A March shareholder meeting and CEO change reorganized management, and June disclosures of a corporate-governance report and large-business-group status updated the governance and affiliation picture.
- Rather than any large new order or dividend disclosure, the story here is that the securities-subsidiary consolidation and the business structure itself lifted results.
- The strengths are clear.
- On top of a very low P/B relative to net assets (0.24x), the swing to profit in the first quarter of 2026 has brought the forward P/E down to around 4.3x, cheap even against similar operating holding companies.
- With revenue diversified across brands, real estate, and finance, the whole does not collapse at once even if one segment wobbles.
- Points to watch: much of the profit is securities trading and fee income, so quarterly results can swing with equity markets, and a consolidated current ratio of 97% means short-term liquidity is not especially ample.
- In sum, this is a stock whose undervaluation appeal is pronounced when securities conditions are favorable and brands and real estate provide support, and one whose profit can turn choppy again if finance income cools.
- Because the starting point of a low P/B and forward-earnings undervaluation is relatively firm, watching whether the profit carries into the next quarter would sharpen the picture.
🔎 Valuation vs peers Inconclusive
The peer set was chosen around its character as an operating-holding, diversified company that owns subsidiaries on a brand-distribution base.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| F&F Holdings | 4.64x | 0.25x | 5.44% |
| Hansae Yes24 Holdings | 0.00x | 0.37x | -7.23% |
At a P/B of 0.25x it is lower than peers F&F Holdings (0.28x) and Hansae Yes24 Holdings (0.39x), the cheapest relative to net assets. But because last year was a loss there is no trailing P/E for an earnings-based comparison, a limitation common at an earnings inflection. On a forward view reflecting the first-quarter 2026 turn to profit the assessment could differ, but since much of the profit is securities trading and fees, its durability needs further confirmation. So rather than declaring it flatly 'cheap,' it is more appropriate to defer judgment and watch whether profit carries through on a cumulative quarterly basis.
Price history Close · MA20 · MA60
The latest close is ₩2,790 and the market capitalization is ₩219.9 billion. The price sits below its 20-day moving average (₩2,940) and below its 60-day moving average (₩3,412). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.0, a neutral level. The one-month change is -9.8%, the three-month change is -10.0%, and the position relative to the 52-week high is -39.7%. Relative strength versus the KOSPI is 9 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 9% of all stocks. Over the past three months it lagged the index by 29.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -29.34% / 6M -50.95% / 12M -70.30%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.25x is below the sector median (0.80x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -3.6%, below the sector average (7.0%). The operating margin is 0.9%. The debt ratio is 1309.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $251.6M | $1.3B | $1.7B | +35.24% ↓ slower |
| Operating profit | $7.7M | $20.0M | $14.8M | -26.17% ↓ slower |
| Net profit | $6.4M | -$19.7M | -$21.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $258.8M | $240.5M | $251.6M | $1.3B | $1.7B |
| Operating profit | $2.9M | $5.3M | $7.7M | $20.0M | $14.8M |
| Net profit | $40.0M | -$1.2M | $6.4M | -$19.7M | -$21.2M |
| Revenue CAGR | 4-yr avg 60.87% | ||||
Revenue rose 35.2% year over year (2023 ₩379.6 billion → 2024 ₩1.9 trillion → 2025 ₩2.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 26.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 60.9%. The two-year revenue CAGR is 162.5%. In the most recent quarter (Q1 2026), revenue was 283.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 35.2% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 1309.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 97.1%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-15EarningsFirst-quarter 2026 report filed. Consolidated cumulative revenue of ₩1.7 trillion, operating profit ₩43.3 billion, and net profit ₩26.4 billion, a swing to profit (net profit up sharply from the same period a year earlier).Near term: an earnings inflection confirmed as it moved from two straight years of loss to profit. Medium term: shows that the securities-subsidiary consolidation is the central axis of results. Source
- 2026-02-06FilingDisclosure of a change in earnings structure of 30% or more (15% for large corporations). Flagged a change versus the prior year, with consolidated revenue of ₩2.6 trillion, operating profit ₩22.3 billion, and net profit of -₩31.9 billion.Near term: pre-notice of the 2025 loss. Medium term: suggests the rapid top-line growth alongside the loss is entangled with the securities consolidation and one-off factors. Source
- 2026-03-18Filing2025 annual report and audit report filed. Consolidated revenue of ₩2.6 trillion (+35.2% year on year), operating profit ₩22.3 billion, and net profit of -₩31.9 billion finalized.Near term: last year's loss finalized, exposing the limits of trailing metrics. Medium term: confirms in the financials that the rapid top-line growth stems from the securities consolidation. Source
- 2026-03-26FilingResults of the regular shareholder meeting and a change of the representative director (representative executive officer). Includes a filing on outside-director changes, reorganizing management.Near term: governance and management changes call for a check on operational continuity. Medium term: the direction of the business portfolio under the new management structure is worth observing. Source
- 2026-06-01FilingCorporate-governance report and large-business-group status disclosure filed (individual company as of the first quarter).Near term: an update of governance and group-affiliation status. Medium term: reference material on its position within the group and governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B | 0.27x | — | Confirmed | link |
| First-quarter 2026 net profit (swing to profit) | ₩26.4 billion, +850% | ₩26.4 billion | Confirmed | link |
| 2025 consolidated revenue and net profit | revenue ₩2.6 trillion(+35.2%), net profit -₩31.9 billion | — | Confirmed | link |
| 2026 forward earnings estimate | self-estimate forward PER | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18Audit report
- 2026-03-18PeriodicAnnual business report
- 2026-03-06Disclosure
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.