LB Semicon is a semiconductor back-end (OSAT) specialist: it attaches bumps to finished chips (bumping), runs electrical probe testing, and handles packaging. Its main line is bumping and testing for display driver ICs (DDIs), so it does not sell its own chips but processes customer volumes for a fee, which ties its results directly to customer shipment levels and utilization. On May 15, 2026 the company approved a roughly ₩49.8 billion rights issue (₩30 billion for facilities, ₩19.8 billion for operations), where the 12 million new shares equal about 20.7% of the existing 58.08 million shares and represent a dilution factor. On June 9 it disclosed and amended debt guarantees for a subsidiary at levels equal to 14.6% and 7.4% of shareholders' equity. What stands out lately is that the core back-end business swung to a double-digit sales gain and to both operating and net profit in Q1, and that a forward P/E of 8.0x and P/B of 0.90x (0.81x on a forward basis) sit below peers — strengths weighed against a debt ratio pushed up by last year's large loss, a current ratio below 100%, roughly 20.7% dilution, and the guarantee burden, so whether the low multiples are an opportunity hinges on how durable the turn to profit proves to be.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 257.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.0%).
- The most recent full-year net result was a loss.
- Revenue rose 6.4% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 14.9% higher than a year earlier.
- ROE is -56.7% (controlling-interest basis). It is below the sector average.
- Operating margin is -8.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2022-12-31
Largest shareholder LB 11.02% (corporate)
Controlling bloc incl. related parties 36.01%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- LB Semicon is a semiconductor back-end (OSAT) specialist.
- Rather than the front-end work of etching circuits, its core business is attaching bumps — tiny protruding terminals that let a finished chip connect to the outside — (bumping), running current through the chip to check that it works (probe testing), and handling final packaging.
- Its main line is bumping and testing for display driver ICs (DDIs) that drive smartphone and TV screens.
- It does not design and sell its own chips; instead it processes volumes entrusted by customers (semiconductor and display makers) for fee-based revenue.
- As a result, its sales move directly with customer set shipments and utilization.
- The latest close is ₩3,955 and market cap is ₩229.7 billion.
- The price sits below the 20-day line (₩4,647) and the 60-day line (₩5,099).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge of upward versus downward momentum over the past 14 days on a 0–100 scale) is 39.1, a neutral level.
- It is down 7.8% over one month and up 2.1% over three months, and sits 42.5% below its 52-week high.
- Relative strength versus the KOSDAQ is 77 (on a 1–99 scale that weights the past year's return versus the index toward the most recent period; higher means stronger than the market), placing it in roughly the top 22% of all stocks by strength.
- Over the past three months it outpaced the index by 29.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On a confirmed full-year (2025) basis, the P/E cannot be computed at all because that year was a net loss.
- That does not mean the company's earning power has vanished; rather, it reflects a bottom-of-the-cycle loss into which items such as impairments were booked all at once.
- The P/B is 0.86x, so the shares trade below net asset value, and on a forward-earnings basis that net-asset multiple falls to 0.81x.
- ROE of -56.7% and an operating margin of -8.3% both reflect last year's large loss and are hard to read as normal earning power.
- The key point is that this is a stock passing through an earnings inflection: metrics built on the trailing twelve months mirror the loss bottom, while the forward P/E of about 8.0x sits well below same back-end peers (in the tens of x), pointing to a cheap price relative to earnings if the recovery holds.
- A debt ratio of 257.2% and a current ratio of 67.0% worsened as last year's loss reduced equity, so it is worth watching whether accumulating profit refills that equity.
- Five-year revenue ran ₩496.2 billion (2021) → ₩524.6 billion (2022) → ₩416.9 billion (2023) → ₩450.9 billion (2024) → ₩479.8 billion (2025), a two-year recovery off the 2023 trough.
- Earnings were in the red for three straight years (2023–2025), and the 2025 net loss widened to -₩150.9 billion on impairments and similar items, but the inflection shows clearly in the most recent quarter.
- Q1 2026 revenue was ₩134.3 billion, up 14.9% year on year, with operating profit of ₩7.6 billion and net profit of ₩10.4 billion — a swing to profit (Q1 2025 was an operating loss of -₩4.0 billion).
- Recovering demand for DDI back-end work lifted utilization, and the cost-structure cleanup carried out during the loss period meant higher sales flowed straight to earnings.
- That a forward P/E of 8.0x is derived rests on the premise that this profit trend continues quarter to quarter, capturing the earnings power of a recovering back-end cycle.
- With revenue back on a growth track and margins turning up off the bottom in an early stage, the stock reads as one whose recovery direction is intact.
- Recent disclosures center on two items.
- First, on May 15, 2026 the company approved a rights issue of about ₩49.8 billion (₩30 billion for facilities, ₩19.8 billion for operations).
- The 12 million new shares equal about 20.7% of the 58.08 million shares outstanding, so per-share value may be diluted by that amount; at the same time, whether the incoming funds support the core recovery through capacity and operations is worth watching.
- Second, on June 9 it disclosed and amended debt guarantees for a subsidiary, with guarantee amounts at levels equal to 14.6% and 7.4% of shareholders' equity and including a cleanup of LG Innotek-related foreign-currency supply guarantees, so the consolidated subsidiary structure and the contingent liabilities the parent assumes should be viewed together.
- The March 20 business report, the March 30 annual general meeting, and the CEO-change disclosure are the official records confirming 2025 results and governance changes.
- On the strengths side, the core back-end business swung to both operating and net profit alongside a double-digit sales gain in Q1 2026, and a forward P/E of 8.0x and P/B of 0.90x (0.81x on a forward basis) both sit below same back-end peers, leaving it cheap on both earnings and net assets.
- As a stock that has just turned up off a loss bottom, its currently low multiples could serve as grounds for undervaluation if the recovery continues quarter to quarter.
- Points to watch include a financial position where equity fell on last year's large loss, leaving a high debt ratio and a current ratio below 100%; roughly 20.7% share dilution from the ₩49.8 billion rights issue; the contingent liability of the subsidiary guarantees; and the volatility of an order-based structure whose sales hinge on customer utilization.
- In sum, it is a stock that is strong when the Q1 profit proves not to be a one-off but continues quarter to quarter and the added capital returns as operating cash flow, and weak when the profit stops at a single quarter or the dilution and guarantee burdens eat into the pace of recovery — whether to view the low multiples as an opportunity depends on how durable the turn to profit is.
🔎 Valuation vs peers Inconclusive
LB Semicon does not sell its own chips; it handles bumping, probe testing, and packaging as a back-end (OSAT) provider, so the peer set is other back-end firms rather than semiconductor materials (Hana Materials) or equipment (Jusung Engineering) names, with figures based on the site's own calculations (tools/peers.py).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hana Micron | 61.39x | 5.87x | 9.56% |
| Nepes | 28.72x | 3.85x | 13.42% |
| SFA Semicon | — | 1.73x | -4.05% |
On a net-asset (P/B) basis it clearly sits below its back-end peer set, but because last year's trailing earnings were a loss, the P/E cannot tell whether it is cheap or expensive. With the earnings inflection (the Q1 2026 swing to profit) just beginning, the trailing metrics reflect the loss bottom, while there is no official company forward guidance — leaving only a DART seasonality approximation (2026 revenue of about ₩576.3 billion) to gauge. Whether the discount is an undervaluation opportunity or a warranted markdown reflecting the financial burden, dilution, and contingent liabilities depends on the quarter-to-quarter continuity of profit and on the results of the raised funds, so it is hard to conclude either way at this point and is left Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩146.4 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩3,955 and the market capitalization is ₩229.7 billion. The price sits below its 20-day moving average (₩4,647) and below its 60-day moving average (₩5,099). 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 39.1, a neutral level. The one-month change is -7.8%, the three-month change is +2.1%, and the position relative to the 52-week high is -42.5%. Relative strength versus the KOSDAQ is 77 (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 78% of all stocks. Over the past three months it outpaced the index by 29.6%. 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 +29.56% / 6M +6.77% / 12M +7.53%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.86x is below the sector median (2.10x).
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
The operating margin is -8.3%. The debt ratio is 257.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $276.3M | $298.8M | $318.0M | +6.41% ↓ slower |
| Operating profit | -$8.4M | -$12.5M | -$26.4M | — |
| Net profit | -$10.1M | -$14.7M | -$100.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $328.9M | $347.7M | $276.3M | $298.8M | $318.0M |
| Operating profit | $29.3M | $37.6M | -$8.4M | -$12.5M | -$26.4M |
| Net profit | $21.6M | $26.6M | -$10.1M | -$14.7M | -$100.0M |
| Revenue CAGR | 4-yr avg -0.84% | ||||
Revenue rose 6.4% year over year (2023 ₩416.9 billion → 2024 ₩450.9 billion → 2025 ₩479.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.8%. The two-year revenue CAGR is 7.3%. In the most recent quarter (Q1 2026), revenue was 14.9% 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.
Points to watch
- Debt is somewhat higher than equity (debt ratio 257.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.0%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 6.4% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15FilingRights issue approved — 12 million new shares, proceeds of about ₩49.8 billion (₩30 billion for facilities, ₩19.8 billion for operations), rights offering to shareholders with a public offering of forfeited shares, par value ₩500Short term: with the new shares at about 20.7% of existing shares, per-share value may be diluted. Medium term: the key is whether the incoming funds support the core recovery through facilities and operations. Source
- 2026-06-09UpdateDebt guarantee for a subsidiary approved (amended filing) — guarantee amounts at levels equal to 14.6% and 7.4% of shareholders' equity, including a cleanup of LG Innotek-related foreign-currency supply guaranteesShort term: the parent assumes the subsidiary's debt, a contingent-liability burden. Medium term: guarantee risk turns on whether the consolidated subsidiary's business normalizes. Source
- 2026-05-15EarningsQuarterly report (Mar 2026) — Q1 revenue of ₩134.3 billion (+14.9% YoY), with operating profit of ₩7.6 billion and net profit of ₩10.4 billion confirming a swing to profitShort term: the first confirmed quarter turning to profit after touching a loss bottom. Medium term: whether this profit carries into Q2–Q4 is the crux of the valuation. Source
- 2026-03-20FilingBusiness report (Dec 2025) — 2025 revenue of ₩479.8 billion (+6.4%), operating loss of -₩39.8 billion, and net loss of -₩150.9 billion (reflecting impairments) confirmedShort term: confirms that last year's loss scale distorted metrics such as ROE and the debt ratio. Medium term: it serves as the baseline for gauging the extent of recovery off this bottom. Source
- 2026-03-30FilingAnnual general meeting results and CEO change — appointment of a new CEO and other governance changesShort term: the management change calls for a review of strategic direction. Medium term: management continuity and execution in the recovery phase are to be watched. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩134.3 billion(+14.9% YoY) | ₩134.2 billion | Confirmed | link |
| Rights issue proceeds | approx. ₩49.8 billion | ₩30,000,000,000 + ₩19,800,000,000 = ₩49,800,000,000 | Confirmed | link |
| Shares outstanding and dilution ratio | 1,200 / 5,808 approx. 20.7% | 12,000,000, 58,083,006 | Confirmed | link |
| 2026 full-year revenue (approximate) | approx. ₩576.3 billion | — | Unverified | link |
Recent filings
- 2026-06-09Amended filing
- 2026-06-01Amended filing
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Material-fact report
- 2026-03-30Disclosure
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-13Shareholders' 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.