LS Marine Solution is a specialist in marine construction that lays and maintains submarine power and communication cables on the seabed. It wins contracts from clients and books revenue on a project basis, with revenue heavily dependent on how many days a year its cable-laying vessels are working on site. In 2024, consolidating a subsidiary lifted revenue from the ₩70 billion range to ₩244.2 billion, and it won a ₩17.52 billion order to bury Phase 2 of the Taiwan TPC submarine cable; however, in April 2026 Anma Offshore Wind gave notice of terminating a ₩94.0 billion contract (72.2% of recent revenue) — but that applies to future revenue recognition and does not reverse the recovery in working days already under way. What stands out lately is a split between a strength and a caution: as one of only a few domestic cable-laying and construction operators, it sits directly in the path of expanding offshore wind and grid build-out, with a completed cable-vessel upgrade (end of June) and a double-digit Q1 rebound supporting normalization; against that, revenue is concentrated in a small number of large projects, so individual contract cancellations or delays raise volatility.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 87.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 18.7% higher than a year earlier.
- ROE is 1.3% (total-net basis). It is below the sector average.
- Operating margin is 2.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder LS Cable & System 67.82% (corporate)
Controlling bloc incl. related parties 68.25%
With the controlling bloc holding 68%, control is very secure but the free float is thin.
🔎 In-depth analysis
- LS Marine Solution is a specialist in marine construction that lays (installs and buries) and maintains submarine power and communication cables on the seabed.
- It also handles onshore underground cable installation.
- It makes money by winning contracts from clients (utilities and offshore-wind developers) to install cables on the seabed and booking revenue on a project basis, with the size of that revenue heavily dependent on how many days a year its cable-laying vessels are actually working on site (project working days).
- Consolidating a subsidiary in 2024 sharply increased the scale of revenue (from the ₩70 billion range per year to ₩244.2 billion), and its recent growth driver is demand for submarine-cable construction at offshore wind farms at home and abroad.
- It won a trenching and burial contract for submarine cables at the Changhua County offshore wind project in Taiwan (TPC Phase 2), and at the Sinan Haesong offshore wind project (about 1GW) in South Jeolla Province it was selected, together with LS Cable, as the preferred bidder for submarine-cable supply and installation.
- The latest close is ₩26,950 and market capitalization is ₩1.4 trillion.
- The price sits below its 20-day moving average (₩27,562) and below its 60-day average (₩32,986).
- Trading beneath both the short- and mid-term averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 46.0, a neutral level.
- The one-month change is -7.9%, the three-month change is -6.9%, and the position versus the 52-week high is -46.2%.
- Relative strength against the KOSDAQ is 78 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 21% of all stocks by strength.
- Over the past three months it led the index by 22.9%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On last year's (2025) confirmed results, the P/E ratio (how many times one year's earnings the share price represents) is 168.44x and the P/B (how many times book net assets the share price represents) is 2.24x.
- A P/E of 177.5x looks very high on the surface, but this is because 2025 was a trough year in which upgrading the main cable-laying vessel reduced working days and temporarily suppressed profit.
- Net profit indeed fell from ₩13.2 billion in 2024 to ₩8.4 billion in 2025, and a P/E calculated on that low profit makes the burden look exaggerated.
- ROE (how much is earned in a year on equity) is 1.3%, low, but this too is a result of the suppressed profit.
- The balance sheet is very stable.
- The debt ratio (debt against equity) is a low 17.7%, and the current ratio (assets readily convertible to cash against debt due within a year) is 7.18x, leaving ample cash.
- The dividend yield is 0.56% (₩160 per share).
- So rather than declaring the stock overvalued on last year's trailing figures alone, it is closer to reality to view it on this year's (forward) basis, when profit normalizes.
- Revenue grew explosively over five years, from ₩29.9 billion (2021) to ₩244.2 billion (2025), accelerating again last year at +87.5% year over year.
- That said, after turning profitable in 2022-2024, operating profit fell from ₩13.1 billion (2023) to ₩12.4 billion (2024) to ₩7.0 billion (2025) — not because the business worsened, but because upgrading the main cable-laying vessel GL2030 to expand its load capacity (from 4,000 tons to about 7,000 tons) reduced on-site operating days.
- This drag unwinds from 2026.
- Q1 2026 revenue was ₩52.8 billion (+18.7%), operating profit ₩4.22 billion (+39.6%), and net profit ₩6.11 billion (+127.8%), a strong rebound.
- Q1 net profit alone already reached about 73% of last year's full-year net profit (₩8.4 billion).
- The vessel upgrade is due to complete at the end of June 2026, and once the expanded cable-laying vessel enters service on site in the second half, working days rise further.
- New offshore-wind orders in Taiwan, Sinan, and elsewhere add to this.
- Reflecting this trajectory, this year's profit is expected to recover sharply from last year.
- As a result, valuation on a forward basis (market cap divided by this year's normalized profit) falls to a far lower level than last year's trailing 177.5x — a textbook earnings-inflection stock where last year's P/E looks high but the shares are already much cheaper on this year's earnings.
- Recent disclosures carry both growth and risk.
- On the positive side, the board resolved in March 2025 to invest ₩19.83 billion (16.2% of equity) to upgrade the main cable-laying vessel GL2030 for greater load capacity, adjusting completion to end of June 2026; this investment is the key trigger for the second-half earnings recovery.
- In May 2026 it also won a ₩17.52 billion contract (13.4% of recent revenue) to bury submarine cables for Phase 2 of the Taiwan TPC offshore wind project.
- On the risk side, in April 2026 the client (Anma Offshore Wind) gave notice of terminating a ₩94.0 billion contract (72.2% of recent revenue).
- That, however, applies to future revenue recognition and does not reverse the recovery in working days already under way.
- In March, a voluntary corporate-value enhancement plan set out goals of improving profitability by expanding working days, winning more offshore-wind orders, and maintaining a stable dividend.
- Watch points: the company is one of only a few operators with the capability to lay cables directly on the seabed domestically, placing it squarely in line to benefit from the structural demand of offshore wind and grid build-out.
- 2025 was a trough year in which the vessel upgrade suppressed profit, and from Q1 2026 both operating and net profit rebounded by double digits or more, marking the start of normalization.
- The balance sheet is solid — low debt, high liquidity — and the completed upgrade (end of June) plus the second-half deployment of the expanded vessel support improving results.
- Last year's trailing P/E of 177.5x is an illusion driven by suppressed profit, and on this year's normalized earnings the valuation falls sharply.
- Cautions: because revenue is concentrated in a few large projects, individual contract cancellations or delays — like the ₩94.0 billion Anma termination — can raise earnings volatility.
- And with capital spending continuing on new and upgraded vessels, capital allocation and the actual pace of new order execution determine the strength of the recovery.
- In sum, it is strong when offshore-wind orders fill in smoothly and the vessels run as planned, and weaker when large contract cancellations and order gaps coincide.
🔎 Valuation vs peers Inconclusive
A listed comparison set growing with submarine and power cables and grid infrastructure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 64.70x | 3.40x | 5.26% |
| LS Electric | 99.12x | 13.73x | 13.85% |
(a) Grid and power-cable comparison names such as Taihan Cable & Solution (P/E 78.4) and LS ELECTRIC (P/E 123.8) also carry high trailing P/E ratios owing to earnings inflection and demand premiums, so LS Marine Solution's 177.5x cannot be viewed as overvalued in isolation. (b) The company's last-year P/E of 177.5x is an illusion, calculated on 'trough-year' profit temporarily suppressed by the vessel upgrade, which makes the burden look exaggerated. (c) Given that net profit rebounded by double digits or more from Q1 and that working days recover in the second half after the upgrade completes (end of June), forward valuation falls sharply versus trailing. However, the concentration of revenue in a few large projects and pipeline volatility such as the ₩94.0 billion contract termination determine the pace of profit normalization, so with the recovery trajectory not yet confirmed in results, the verdict at this point is set to inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩26,950 and the market capitalization is ₩1.4 trillion. The price sits below its 20-day moving average (₩27,562) and below its 60-day moving average (₩32,986). 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 46.0, a neutral level. The one-month change is -7.9%, the three-month change is -6.9%, and the position relative to the 52-week high is -46.2%. Relative strength versus the KOSDAQ is 78 (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 79% of all stocks. Over the past three months it outpaced 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 +22.90% / 6M +9.44% / 12M -10.24%
Key metrics vs whole-market median
Valuation
The P/E of 168.44x is above the whole-market median (13.81x). The P/B of 2.24x is above the whole-market median (1.15x). 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.
Profitability & financials
Return on equity (ROE) is 1.3%, below the whole-market average (5.0%). The operating margin is 2.9%. The debt ratio is 17.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $46.9M | $86.3M | $161.9M | +87.45% ↑ faster |
| Operating profit | $8.7M | $8.2M | $4.6M | -43.44% ↓ slower |
| Net profit | $7.7M | $8.8M | $5.5M | -36.71% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $19.8M | $28.4M | $46.9M | $86.3M | $161.9M |
| Operating profit | -$3.4M | -$4.4M | $8.7M | $8.2M | $4.6M |
| Net profit | -$2.1M | -$8.0M | $7.7M | $8.8M | $5.5M |
| Revenue CAGR | 4-yr avg 69.09% | ||||
Revenue rose 87.5% year over year (2023 ₩70.8 billion → 2024 ₩130.3 billion → 2025 ₩244.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 43.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 69.1%. The two-year revenue CAGR is 85.8%. In the most recent quarter (Q1 2026), revenue was 18.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 87.5% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-19UpdateWon a trenching and burial contract for submarine cables at Phase 2 of the Taiwan Changhua County TPC offshore wind project. Contract value ₩17.52 billion (13.4% of recent consolidated revenue), counterparty FOXWELL ENERGY, contract-period end extended to 2026-08-29.Positive for short- to mid-term revenue and working days. Securing an overseas offshore-wind construction reference strengthens the base for further orders. Source
- 2026-04-27UpdateTermination of the submarine and onshore export-cable supply, transport, installation, and commissioning contract with Anma Offshore Wind. Termination value ₩93.99 billion (72.2% of recent consolidated revenue), following the client's notice of termination.Mid-term risk of a shrinking revenue pipeline. However, it does not reverse the recovery in working days on projects already under way. Source
- 2026-03-24FilingInvestment of ₩19.83 billion (16.2% of equity) to upgrade the main cable-laying vessel GL2030 for greater cable load capacity, investment-period end adjusted to 2026-06-30. Aimed at addressing demand for larger and longer-distance offshore-wind installations.The reduction in working days during the upgrade is the cause of the temporary drop in 2025 profitability and, once complete, the key trigger for the second-half recovery in working days and results. Source
- 2026-03-24IRCorporate-value enhancement plan (voluntary disclosure). Sets out goals of improving profitability by expanding project working days, winning more new offshore-wind orders, and maintaining a stable dividend. Cites the reduction in working days from the vessel upgrade as the cause of lower 2025 profitability.Confirms the direction of mid-term earnings improvement and the intent on shareholder returns. Source
- 2026-07-01IRStarted construction of a next-generation newbuild cable-laying vessel (about ₩345.8 billion). Steel cutting has begun at a Turkish shipyard, targeting delivery in the first half of 2028.Long-term capacity expansion. Following the upgraded GL2030 (deployed in the second half), it grows the cable-vessel fleet to meet structural demand, with results starting in earnest after 2028. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 net profit YoY | +127.8% (net profit ₩6.1 billion) | (2026.03) — | Confirmed | link |
| 2025 consolidated revenue | ₩244.2 billion (YoY +87.5%) | (2025.12) approx. ' revenue 130,279(2024)' | Confirmed | link |
| GL2030 cable-vessel upgrade investment and completion date | ₩19.8 billion, 2026-06-30 | — | Confirmed | link |
| 2026 normalized net profit (internal estimate) | approx. ₩23.0 billion (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-19Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Single supply/sales contract (amended)
- 2026-04-27Single supply/sales contract
- 2026-03-24Amended filing
- 2026-03-24Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
📖 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.