L&F (066970) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
L&F is a company that synthesizes lithium, nickel, cobalt, and manganese to make 'cathode materials' that determine the capacity and output of EV batteries. Its mainstay is high-nickel NCM/NCMA for long-range, high-performance EVs, it has a large share of the Tesla-bound supply chain, and it has recently broadened into the ESS market with low-cost LFP cathode materials. In March 2026 it signed a long-term LFP cathode supply contract with Samsung SDI worth about ₩1.6 trillion (for U.S. ESS, with firm supply for 2027-2029 plus a three-year option), securing a second growth axis, and its Q1 provisional results in late April confirmed a swing to operating profit. What stands out recently is that high-nickel shipments have set record highs for three straight quarters and, with the large LFP contract expanding its demand sources to two, its revenue has turned back to growth versus peers, a point of differentiation. At the same time, with a heavy financial structure carrying a debt ratio of 365.6%, Q1 net profit was still a loss, and the pace of recovery can vary with material selling prices and utilization rates.
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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 “Cathode Materials” (Secondary Batteries · Battery Materials, Parts & Equipment), a type typically read first through EV/EBITDA.
Cathode materials carry heavy capacity expansion and depreciation, so looking at net income alone gets distorted by capex and capital structure. That makes EV/EBITDA — enterprise value against operating cash generation before depreciation — the first lens. But in a loss-making stretch, say from a slide in raw-material prices, that metric breaks down, so EV/Sales — enterprise value against revenue — steps in to size the business against its scale.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- Debt far exceeds equity (debt ratio 400.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 66.5%).
- The most recent full-year net result was a loss.
- Revenue rose 13.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 102.8% higher than a year earlier.
- ROE is -79.3% (controlling-interest basis). It is below the sector average.
- Operating margin is -7.3%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Sanoxis 13.64% (corporate)
Controlling bloc incl. related parties 22.06%
With the controlling bloc holding 22%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
L&F is a company that makes the 'cathode materials' that go into EVs and batteries. Cathode material is a core component accounting for 30-40% of a battery's cost, and by synthesizing lithium, nickel, cobalt, and manganese it determines the battery's capacity and output. This company's mainstay is 'high-nickel' NCM/NCMA cathode materials, which greatly raise the nickel share and are used in long-range, high-performance EVs. A substantial part of its revenue comes from the Tesla-bound battery supply chain, and recently shipments of its Ultra-HINI products, which push the nickel content even higher, as a sole supplier and of new products for 46-pi (46mm-diameter) cylindrical batteries have been increasing. On top of this, it is broadening its business with low-cost 'LFP' cathode materials that use iron and phosphate instead of nickel, entering the energy storage system (ESS) market.
The latest close is ₩79,800 and the market capitalization is ₩3.2 trillion. The price sits below its 20-day moving average (₩82,990) and below its 60-day moving average (₩118,017). 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 41.1, a neutral level. The one-month change is -19.8%, the three-month change is -62.5%, and the position relative to the 52-week high is -62.5%. Relative strength versus the KOSPI is 14 (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 13% of all stocks. Over the past three months it lagged the index by 55.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Last year's (2025) confirmed results were a loss, with revenue of ₩2,154.9 billion, an operating loss of ₩156.8 billion, and a net loss of ₩533.5 billion. As a result, the P/E ratio (how many times one year's earnings the share price is) cannot be calculated because earnings are negative, and the P/B ratio (how many times net assets the share price is) is shown as 5.51x. ROE (how much is earned in a year on equity) is -79.3%, the debt ratio (debt relative to equity) is 465.6%, so the financial burden is on the heavy side, and the current ratio (assets that can be turned into cash relative to debt due within a year) of 65% is not comfortable either. That said, it is important that most of these figures reflect 'last year, which was a loss.' In an inflection phase where earnings turn from negative to positive, last-year-based metrics exaggerate how weak the actual health is. In fact, in the first quarter of 2026 operating profit swung back into the black, and at that point this year's continued earnings recovery, rather than last-year-based numbers like the debt ratio and P/B, becomes the more important basis for judgment.
Looking at the revenue trajectory, it surged from ₩970.8 billion in 2021 to ₩3,887.3 billion in 2022 to ₩4,644.1 billion in 2023, then fell to ₩1,907.5 billion in 2024 on slowing EV demand and falling material selling prices. It then passed the trough, rising 13.0% again to ₩2,154.9 billion in 2025, and in the first quarter of 2026 revenue surged 102.8% year on year to ₩739.6 billion. The turn in the earnings trend is even clearer. From a full-year 2025 operating loss of ₩156.8 billion, the first quarter of 2026 swung at once into an operating profit of ₩117.3 billion. This is the result of high-nickel shipments setting record highs for three straight quarters, plus Ultra-HINI sole supply and the 46-pi new product. If this operating-profit trend continues through the rest of this year, there is a strong chance that second-half net profit also rises into positive territory. That Q1 net profit remained at -₩65.3 billion is due not to operations but to financial costs from the large debt load and foreign-exchange and derivative valuation factors; if this part normalizes, a swing to full-year net profit is a plausible trajectory. Viewed against this year's recovering earnings, the valuation that could not be calculated because of last year's loss becomes an entirely different picture.
The biggest event is the long-term LFP cathode supply contract signed with Samsung SDI in March 2026, worth about ₩1.6 trillion. The volumes go into batteries for U.S. ESS (energy storage systems), structured as firm supply for 2027-2029 with an additional three-year option. As effectively the first large LFP supply contract among non-Chinese firms, it carries great significance in securing a second growth axis - LFP (ESS) following high-nickel (EVs). To that end the company is building LFP production facilities with an annual capacity of 60,000 tons and plans to enter mass production in the second half of 2026. In late April 2026, last year's audit report and provisional Q1 results were disclosed, confirming the swing to operating profit.
The points to watch are clear. The strengths are (1) that in high-nickel cathode materials centered on the Tesla supply chain, shipments set record highs for three straight quarters and Q1 2026 operating profit swung into the black, and (2) that the large LFP contract with Samsung SDI secured a new demand source in ESS beyond EVs, expanding its growth axes to two. Unlike peers in materials, whose revenue is still shrinking, this company's revenue has turned back to growth, another point of differentiation. The cautions are (1) that with a heavy financial structure carrying a debt ratio of 365.6%, the financial-cost burden is large, so even with operating profit Q1 net profit was still a loss, and (2) that cathode-material earnings are sensitive to material selling prices such as nickel and lithium and to utilization rates, so the pace of recovery can vary quarter to quarter. In sum, this is a phase where earnings improvement continues if EV and ESS demand recovery and LFP mass production proceed as planned, and a structure where recovery can be delayed if material selling prices weaken again or financial costs erode profit.
🔎 Valuation vs peers Undervalued
A comparison against the three domestic listed cathode-material (secondary-battery material) makers, set against Ecopro BM and POSCO Future M, whose business substance (EV cathode-material manufacturing) is most similar.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| EcoPro BM | 254.72x | 5.61x | 2.28% |
| POSCO Future M | 406.67x | 3.17x | -0.25% |
| L&F | — | 4.86x | -79.27% |
Because last year's loss means the P/E cannot be calculated and only a P/B of 6.63x is visible, it looks expensive, but this is a limitation of a last-year basis when earnings were negative. A stock at an inflection where earnings swing into the black should be viewed by this year's recovering earnings, not by last year's metrics. Viewed against this year's recovering earnings - reflecting the Q1 swing to operating profit, expanding high-nickel shipments, and the normalization of financial costs - the valuation comes down to within about 20x of the market cap, and compared with the two peers, which show hundreds of times because they earn almost no profit yet, it sits in a relatively undervalued position given that its earnings recovery is ahead of theirs. That said, one must also consider that the heavy debt can constrain the pace of recovery.
Price history Close · MA20 · MA60
The latest close is ₩79,800 and the market capitalization is ₩3.2 trillion. The price sits below its 20-day moving average (₩82,990) and below its 60-day moving average (₩118,017). 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 41.1, a neutral level. The one-month change is -19.8%, the three-month change is -62.5%, and the position relative to the 52-week high is -62.5%. Relative strength versus the KOSPI is 14 (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 13% of all stocks. Over the past three months it lagged the index by 55.0%. 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 -55.01% / 6M -49.12% / 12M -42.71%
Key metrics Computed vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 4.86x is above the whole-market median (0.84x).
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 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -79.3%, below the whole-market average (3.0%). The operating margin is -7.3%. The debt ratio is 400.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.3B | $1.3B | $1.5B | +12.97% ↑ faster |
| Operating profit | -$156.2M | -$392.5M | -$110.2M | — |
| Net profit | -$136.5M | -$265.5M | -$374.8M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $682.0M | $2.7B | $3.3B | $1.3B | $1.5B |
| Operating profit | $31.1M | $187.1M | -$156.2M | -$392.5M | -$110.2M |
| Net profit | -$79.4M | $189.7M | -$136.5M | -$265.5M | -$374.8M |
| Revenue CAGR | 4-yr avg 22.06% | ||||
Revenue rose 13.0% year over year (2023 ₩4.6 trillion → 2024 ₩1.9 trillion → 2025 ₩2.2 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened 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 22.1%. The two-year revenue CAGR is -31.9%. In the most recent quarter (Q1 2026), revenue was 102.8% 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 13.0% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 400.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 66.5%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-24UpdateSigned a long-term LFP cathode supply contract with Samsung SDI worth about ₩1.6 trillion. Goes into batteries for U.S. ESS, with firm supply for 2027-2029 and an additional three-year option.Secures a second large demand source, LFP (ESS), following high-nickel (EVs). Diversifies growth axes by expanding medium- to long-term revenue visibility. Source
- 2026-04-30EarningsDisclosed the 2025 audit report and provisional Q1 2026 results. Q1 revenue ₩739.6 billion (+102.8% year on year), operating profit ₩117.3 billion, a swing to profit.Confirms the swing to operating profit. Empirical evidence of the earnings inflection breaking away from last year's loss base. Source
- 2026-04-23IRNotice of an investor briefing (IR). Planned to explain Q1 results and the progress of high-nickel shipments and the LFP business.Communicates the business plan directly with the market during the earnings-recovery phase. Positive from a short-term information-transparency standpoint. Source
- 2026-05-15FilingFiled the Q1 2026 report. Discloses the details of the swing to revenue and operating profit and the financial position.The details of the Q1 swing to profit are formally confirmed in the official report. The cause of the net loss (financial costs and so on) can be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual net loss | -₩533.5 billion | -₩533.5 billion | Confirmed | link |
| Q1 2026 operating profit | ₩117.3 billion | ₩117.3 billion | Confirmed | link |
| Size of the Samsung SDI LFP supply contract | approx. 1₩600.0 billion | (2026-03-24) | Confirmed | link |
| 2026 annual net profit (own estimate) | approx. ₩230.0 billion | — | Unverified | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-27Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-11OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-23PeriodicAnnual business report (amended)
- 2026-04-23Disclosure
- 2026-04-23OwnershipOwnership-change filing
- 2026-04-23PeriodicAnnual business report (amended)
- 2026-04-16OwnershipOfficers'/major-shareholders' holdings 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.