LS (006260) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
LS is a holding company that controls its group by owning stakes in subsidiaries, including LS Cable & System (power cables), LS Electric (power equipment) and LS MnM (copper smelting). Consolidated revenue for the first quarter of 2026 was ₩9.5044 trillion, up 37.5% from a year earlier, and net profit rose 71.4% to ₩241.9 billion — already achieving most of last year's full-year net profit in a single quarter. What stands out recently is that while demand for submarine cables and power grids persists, subsidiary earnings grow alongside it, so a valuation that looked expensive on last year's figures becomes far lower on this year's earnings; at the same time, listed subsidiary LS Electric, which makes up a large part of the stake value, is itself already richly valued, and this must be considered when looking at net asset value.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Holding Companies”, a type typically read first through discount to NAV.
A holding company is less a maker of products than a vessel that holds stakes in several subsidiaries. So rather than an earnings multiple, the first lens is the discount to NAV — the market value against the summed worth of everything it owns.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 15.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 37.5% higher than a year earlier.
- ROE is 7.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.5%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2016-12-31
Largest shareholder Koo Cha-yeol 2.5% (individual)
Controlling bloc incl. related parties 30.51%
With the controlling bloc holding 31%, the ownership structure is stable.
Net asset value (NAV) assessment 30% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| LS ELECTRIC | 48.46% |
🔎 In-depth analysis Reading
LS is not a company that makes things directly; it is a holding company that owns stakes in its subsidiaries and controls the entire group. It earns money in two ways. The profits its subsidiaries generate come in as dividends and equity-method income, to which is added royalty fees for using the 'LS' brand. There are three core subsidiaries. First, LS Cable & System makes power cables, especially submarine cables laid on the seabed. Second, LS Electric makes power equipment such as transformers and circuit breakers, plus automation gear, and is the only one that is listed. Third, LS MnM smelts copper. So LS's earnings improve together with the cable, power and copper industries when they are strong.
The latest close is ₩328,500 and the market capitalization is ₩10.2 trillion. The price sits above its 20-day moving average (₩291,150) and below its 60-day moving average (₩381,283). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.3, a neutral level. The one-month change is -3.7%, the three-month change is -38.1%, and the position relative to the 52-week high is -40.6%. Relative strength versus the KOSPI is 69 (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 69% of all stocks. Over the past three months it lagged the index by 22.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
A holding company's financial metrics must be read differently from those of a typical manufacturer. The debt ratio (debt relative to equity) is high at 346%, but this is because the large capital expenditures and borrowings of the subsidiaries are all captured in the consolidated financial statements. ROE (how much the company earns in a year on its equity) is an ordinary 5.4%. One point to watch here: the P/B (how many times net assets the price represents) appears to be 1.9x, but a holding company's book equity records its subsidiary stakes at their low historical acquisition cost, so it comes out smaller than the actual value of those stakes. In other words, there is an illusion that makes the P/B look higher than it really is. EV/EBITDA (enterprise value, including debt, divided by operating profit before depreciation) is 12.7x, and EV/Sales (enterprise value divided by revenue) is 0.63x. Net debt (total borrowings minus cash) is ₩8 trillion, reflecting an active investment phase in which subsidiaries are expanding.
The top line has grown steadily. Over the past five years revenue grew at an average 25.5% a year, and last year's revenue rose 15.7% from the prior year to ₩31.87 trillion. The earnings path, however, has had bumps. Last year's operating profit was ₩1.0525 trillion, down slightly, and net profit was ₩270.8 billion. The inflection point is the first quarter of this year: revenue jumped 37.5% from a year earlier, operating profit 56.4%, and net profit 71.4%. On net profit alone, it earned ₩241.9 billion in a single quarter, equal to 89% of last year's full-year net profit. The reason for the step-change in earnings is clear: LS Cable & System's submarine-cable orders are building up on European offshore wind and domestic grid expansion, and the spread of AI data centers is boosting demand for long-distance, high-capacity power transmission. If this trend continues through the year, last year's earnings no longer serve as a yardstick for explaining this year's results.
This year's disclosures center on the subsidiaries' growth activity. In May a filing reported that a subsidiary signed a single supply contract, in line with the ongoing flow of power-cable orders. Around the same time, a decision by a subsidiary to increase short-term borrowings was disclosed — funding to expand facilities and meet orders, a typical signal of a growth phase. In June, the corporate governance report and the large-business-group status were disclosed, the routine procedure by which a holding company periodically discloses its governance and affiliate status. The first-quarter results were confirmed via the May quarterly report. There was no separate disclosure changing the dividend policy; based on last year, the dividend per share was ₩2,500 and the dividend yield was 0.82%.
The key to looking at LS is 'what yardstick you use.' On last year's earnings alone it looks expensive at a 35x P/E. But this year's earnings flow is completely different: first-quarter net profit filled most of last year's full year, and submarine-cable demand supports this trend. On this year's earnings, the valuation is far lower. The favorable condition is clear: as long as grid investment and submarine-cable orders continue, subsidiary earnings grow and the holding company's share grows with them. There is also a cautionary condition. A holding company's true value must be seen through the market value of the stakes it holds — that is, net asset value (NAV) — and a large part of that NAV is listed subsidiary LS Electric, which is itself already richly valued. Earnings can also be uneven from quarter to quarter because they hinge on subsidiary results. That said, with the share price down 28% over the past month, the discount to NAV has in fact widened. In sum, this is a company whose earnings and value grow together when the cable and power industries are strong, and whose subsidiary valuation and earnings volatility need to be watched together.
🔎 Valuation vs peers Inconclusive
Because it is not a company that makes things directly but a holding company that controls its group through subsidiary stakes, it is compared with Korea's representative holding companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Corp. | 21.86x | 0.53x | 1.69% |
| SK Inc. | 23.10x | 1.25x | 26.75% |
| CJ Corporation | 29.70x | 0.80x | 3.47% |
| LS ELECTRIC | 105.98x | 14.69x | 16.36% |
A holding company records its subsidiary stakes on the books at low acquisition cost, so simply comparing metrics such as a 35x P/E and 1.9x P/B with other holding companies (LG, SK, CJ) creates a misunderstanding. The proper yardstick is net asset value (NAV), the sum of the market value of the listed and unlisted stakes it holds. On last year's earnings a 35x P/E looks expensive, but earnings have stepped up so much that first-quarter net profit reached 89% of last year's full year. Projecting the first-quarter trend to a full year makes the valuation far lower. However, listed subsidiary LS Electric, which makes up a large part of NAV, is already richly valued at a 105x P/E and 14.6x P/B, so even though the discount to NAV looks wide, one must also consider that an expensive asset is already embedded within it. With the share price down 28% over the past month, the discount to NAV has widened. Because of this two-sidedness, we judge it Inconclusive rather than leaning one way.
Price history Close · MA20 · MA60
The latest close is ₩328,500 and the market capitalization is ₩10.2 trillion. The price sits above its 20-day moving average (₩291,150) and below its 60-day moving average (₩381,283). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.3, a neutral level. The one-month change is -3.7%, the three-month change is -38.1%, and the position relative to the 52-week high is -40.6%. Relative strength versus the KOSPI is 69 (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 69% of all stocks. Over the past three months it lagged the index by 22.9%. 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 -22.92% / 6M +31.29% / 12M +0.35%
Key metrics Computed vs whole-market median
Valuation
The P/E of 37.85x is above the whole-market median (12.97x). The P/B of 2.03x is above the whole-market median (0.84x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.3%, above the whole-market average (3.0%). The operating margin is 3.5%. The debt ratio is 392.8%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $17.2B | $19.4B | $22.4B | +15.70% ↑ faster |
| Operating profit | $632.0M | $753.7M | $739.4M | -1.90% ↓ slower |
| Net profit | $306.3M | $166.7M | $190.2M | +14.11% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.0B | $12.3B | $17.2B | $19.4B | $22.4B |
| Operating profit | $404.2M | $471.3M | $632.0M | $753.7M | $739.4M |
| Net profit | $195.1M | $317.2M | $306.3M | $166.7M | $190.2M |
| Revenue CAGR | 4-yr avg 25.54% | ||||
Revenue rose 15.7% year over year (2023 ₩24.5 trillion → 2024 ₩27.5 trillion → 2025 ₩31.9 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 1.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 25.5%. The two-year revenue CAGR is 14.1%. In the most recent quarter (Q1 2026), revenue was 37.5% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 15.7% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-14UpdateA subsidiary disclosed that it signed a single supply contract, linked to the ongoing flow of power-cable orders.Over the medium term this flows into subsidiary revenue and profit, with the holding company's share rising along with it. Source
- 2026-05-14FilingDisclosure of a subsidiary's decision to increase short-term borrowings. Funding to expand facilities and meet orders.A signal of a growth-investment phase, though the wider group borrowing is a factor that adds to the financial burden. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report disclosed. Consolidated revenue ₩9.5044 trillion, operating profit ₩476.1 billion, net profit ₩241.9 billion.Revenue, operating profit and net profit all rose sharply, confirming an earnings inflection. Source
- 2026-06-01FilingCorporate governance report disclosed. As a holding company, it periodically discloses its governance status.Direct impact on earnings is limited; this is information related to governance transparency. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-27PeriodicQuarterly report (amended)
- 2026-05-18Amended filing
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-14Disclosure
- 2026-05-14Single supply/sales contract (amended)
📖 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.