LS Securities is a mid-sized financial-investment company in the LS Group that earns money along four lines - commissions on client trading, proprietary (PI) trading gains, IB fees, and the issuance and management of structured products - where the quality of fees and trading gains, rather than headline revenue, determines its real strength. The May 14 Q1 report confirmed a strong start with operating profit of ₩39.2 billion, already surpassing all of last year in a single quarter, and with a P/B of 0.38x, a dividend yield in the 8% range, and a forward P/E well below peers. The point to watch: in a phase where market turnover and the trading environment are favorable and earnings and dividends hold, the appeal is clear on both asset value and forward P/E; against that, the quarter-to-quarter swings in trading gains, a 148.5% payout ratio, and a run of litigation disclosures are all points to keep watching.
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 38.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 343.2% higher than a year earlier.
- ROE is 2.6% (total-net basis). It is below the sector average.
- Operating margin is 1.0%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2024-12-31
Largest shareholder LS Networks 60.98% (corporate)
Controlling bloc incl. related parties 61.25%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- LS Securities is a mid-sized financial-investment company in the LS Group.
- It earns money along four main lines.
- First, commissions for intermediating stock trades by individuals and institutions; second, proprietary (PI) trading gains, where the company invests its own money in bonds, stocks and derivatives; third, IB (underwriting and arranging) fees that help companies raise capital; and fourth, income from issuing and managing structured products such as ELS and DLS.
- Its 2025 consolidated revenue was ₩2.3 trillion but operating profit was ₩22.2 billion - because a firm like this records the full 'gross turnover' of bond and derivative trading as revenue, the size of revenue does not equate to the size of earnings.
- In other words, this is a business where the quality of fees and trading gains, rather than headline size, determines its real strength.
- The latest closing price is ₩6,470 and the market cap is ₩359.0 billion.
- The price sits above the 20-day line (₩6,438) but below the 60-day line (₩7,063).
- With the short- and mid-term trends diverging, direction should be read separately for each.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 47.2, a neutral reading.
- The one-month change is +1.6%, the three-month change is -6.2%, and the price sits -28.2% below its 52-week high.
- Relative strength versus KOSDAQ is 84 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the present; higher means stronger than the market), placing it in roughly the top 15% of all stocks by strength.
- Over the past three months it led the index by 22.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On a confirmed annual (last year) basis, the P/E ratio (how many times one year's earnings the price represents) is 15.64x, the P/B ratio (how many times net assets the price represents) is 0.41x, and ROE (how much is earned in a year on equity) is 2.6%.
- The debt ratio (debt relative to equity) looks high at 1082%, but for a financial-investment company, running operations on client deposits and borrowings is the nature of the business, so it cannot be judged by the same yardstick as a manufacturer.
- A P/B of 0.38x means it trades at 38% of net assets, so the price is low relative to asset value - a factor that props up the floor.
- A P/E of 14.65x is on a 'last-year-confirmed' basis, but with LS Securities at an inflection point where earnings have just turned up, this year's expected earnings give a truer picture than last year's figures.
- The forward P/E reflecting this year's earnings is distinctly below that of peers (mostly 7-13x), reading as an undervalued signal.
- Available three-year revenue rose from ₩1.3 trillion in 2023 to ₩1.7 trillion in 2024 to ₩2.3 trillion in 2025 (a +31.8% average annual rate), with the pace of increase quickening as well.
- Operating profit was pressed down for a while, going from ₩33.2 billion in 2023 to ₩21.8 billion in 2024 to ₩22.2 billion in 2025, because much of the revenue increase was the top line (gross turnover) of bond and derivative trading, which did not flow straight through to earnings in proportion to the top line.
- This year, however, the trend has clearly changed.
- Cumulative Q1 2026 revenue was ₩1.6 trillion (+343% year on year), operating profit ₩39.2 billion (+134%) and net profit ₩30.3 billion (+142%), so a single quarter's operating profit already surpassed last year's full-year operating profit (₩22.2 billion).
- This resulted from client-trading commissions and trading gains reviving together as market turnover recovered and the bond and derivative trading environment provided support.
- This year's expected earnings are set this high on the back of that strong Q1 and a favorable trading environment, and the forward P/E is a figure that reflects that earnings recovery.
- Recent disclosures split among regular results, litigation and financing.
- The May 14 Q1 2026 quarterly report confirmed a strong start (operating profit of ₩39.2 billion).
- On May 6 and June 11, litigation-related disclosures (a ruling/decision and a new filing) came in succession, so the claim amounts and progress need to be watched going forward.
- The June 9 decision to increase short-term borrowings is routine financing that a firm often uses to manage operations and liquidity, but the size and purpose of the borrowing are worth confirming as well.
- The June 1 large-business-group status disclosure is a governance report as an LS Group affiliate.
- This is a stock where the stronger side is clear.
- It is supported by an asset-value discount trading at 38% of net assets (P/B 0.38x), Q1 earnings that surpassed all of last year in a single quarter, and a high dividend yield in the 8% range.
- Above all, the forward P/E reflecting this year's expected earnings is well below peers, a signal that the price is cheap even if earnings merely hold at the current level.
- There are points to watch too.
- Trading gains at a firm like this tend to swing quarter to quarter, so earnings are not always steady, and with a payout ratio of 148.5% - paying out more than it earns - the dividend could be adjusted if earnings fall.
- The run of litigation disclosures is also worth following, since depending on the claim amounts they could be recorded as expenses.
- In short, in a phase where market turnover and the trading environment are favorable and earnings and dividends hold, the appeal stands out clearly on both asset value and forward P/E; in a phase where trading gains wobble, volatility rises.
🔎 Valuation vs peers Inconclusive
The comparison uses mid-sized full-service financial-investment companies close in business substance, looking first at Hyundai Motor Securities, Daishin Securities and Bookook Securities, which are similar in market cap and asset value (P/B), with a large firm added as a supplement to gauge the market-average asset-value discount.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Motor Securities | 8.36x | 0.33x | 4.00% |
| Daishin Securities | 6.98x | 0.32x | 4.60% |
| Bookook Securities | 12.29x | 0.67x | 5.48% |
| Samsung Securities | 9.90x | 1.24x | 12.48% |
On an asset-value basis (P/B 0.42x), LS Securities sits in a discount range similar to mid-sized peers like Hyundai Motor Securities and Daishin Securities, so 'cheap or expensive' is hard to declare. A last-year-confirmed P/E of 16x looks higher than peers, but since Q1 2026 operating profit (₩39.2 billion) already exceeded all of last year (₩22.2 billion), the multiple has room to fall sharply on a forward basis. That said, as the operating losses in last year's Q3 and Q4 show, quarterly earnings volatility is large, making the forward assumption itself unstable. In the end, weighing the low profitability of a 2.6% ROE, lumpy quarterly earnings, and an excessive 148.5% payout ratio together, it is reasonable to decide after seeing whether earnings durability and dividend maintenance are confirmed, rather than declaring for one side at this point.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩1.9 trillion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩6,470 and the market capitalization is ₩359.0 billion. The price sits above its 20-day moving average (₩6,438) and below its 60-day moving average (₩7,063). 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 47.2, a neutral level. The one-month change is +1.6%, the three-month change is -6.2%, and the position relative to the 52-week high is -28.2%. Relative strength versus the KOSDAQ is 84 (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 85% of all stocks. Over the past three months it outpaced the index by 22.3%. 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 +22.32% / 6M +56.74% / 12M +27.76%
Key metrics vs sector median
Valuation
The P/E of 15.64x is above the sector median (8.97x). The P/B of 0.41x is in line with the sector median (0.45x). 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.
Profitability & financials
Return on equity (ROE) is 2.6%, below the sector average (6.0%). The operating margin is 1.0%. The debt ratio is 1082.2%, 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 | $876.3M | $1.1B | $1.5B | +38.80% ↑ faster |
| Operating profit | $22.0M | $14.5M | $14.7M | +1.89% ↑ faster |
| Net profit | $19.0M | $11.0M | $15.2M | +38.09% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $876.3M | $1.1B | $1.5B |
| Operating profit | — | — | $22.0M | $14.5M | $14.7M |
| Net profit | — | — | $19.0M | $11.0M | $15.2M |
| Revenue CAGR | 2-yr avg 31.76% | ||||
Revenue rose 38.8% year over year (2023 ₩1.3 trillion → 2024 ₩1.7 trillion → 2025 ₩2.3 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 1.9% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 31.8%. The two-year revenue CAGR is 31.8%. In the most recent quarter (Q1 2026), revenue was 343.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 7.7%, is on the high side.
- Revenue grew 38.8% 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
- 2026-05-14EarningsQ1 2026 quarterly report filed - cumulative revenue of ₩1.6 trillion, operating profit of ₩39.2 billion, net profit of ₩30.3 billion, up sharply year on yearIn the short term, it confirms strong results that surpassed last year's full-year operating profit (₩22.2 billion) in a single quarter. However, with operating losses in last year's Q3 and Q4 on record, full-year durability needs separate confirmation. Source
- 2026-06-11UpdateFiling/application of litigation (a claim above a set amount) - a new litigation-related matter arose following the May ruling/decision disclosureOver both the short and medium term, a contingent-liability and reputational risk factor. Depending on the claim amount and progress it could be recognized as an expense, so follow-up disclosures need to be checked. Source
- 2026-06-09FilingDecision to increase short-term borrowings - financing for the purpose of managing operations and liquidityAs routine financing in the investment business, it is hard to view as negative in itself, but depending on the size and purpose it affects interest costs and leverage burden. Source
- 2026-06-01FilingLarge-business-group status disclosure - a report on governance and affiliate status as an LS Group companyThe direct impact on results is small, but it is a reference for understanding the group's affiliate structure and inter-affiliate transactions. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 consolidated operating profit | ₩22.2 billion | ₩22.2 billion | Confirmed | link |
| Q1 2026 cumulative operating profit | ₩39.2 billion | ₩39.2 billion | Confirmed | link |
| Dividend per share (DPS) / payout ratio | ₩500 / 148.5% | — | Unverified | link |
| 2026 annual revenue (seasonality approximation) | approx. ₩8.4 trillion | — | Unverified | link |
Recent filings
- 2026-06-09Disclosure
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-06Litigation disclosure
- 2026-05-06Litigation disclosure
- 2026-05-06Litigation disclosure
- 2026-05-06Litigation disclosure
- 2026-05-06Litigation disclosure
- 2026-04-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10Disclosure
- 2026-04-10Disclosure
📖 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.