LX Semicon is a fabless company that only designs chips, with display driver ICs (DDI) that send signals to each pixel of smartphone, TV, and monitor screens as its mainstay. In Q1 2026 revenue split into mobile 42%, TV 27%, and IT devices 25%, while new businesses such as automotive contribute little so far, and because it outsources production to external foundries, any rise in wafer prices immediately raises its cost burden. On April 30, 2026, Q1 preliminary results came in as an earnings shock below expectations, confirming weakness in mobile DDI, and at the March shareholders' meeting a dividend of ₩1,500 per share was set, keeping the payout ratio at about 30% even as profit fell. The notable point of late is that its net cash balance sheet, a P/B of 0.57x, a 3.8% dividend, and a 17% FCF yield make its undervaluation on assets, cash, and dividends clear, while revenue and profit have fallen for several years and the drop worsened in Q1, and with revenue concentrated in smartphone and TV DDI, a recovery in mobile DDI demand and a larger profit contribution from new businesses are the points to watch.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 12.1% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 18.4% lower than a year earlier.
- ROE is 7.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.6%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder LX Holdings 33.08% (corporate)
Controlling bloc incl. related parties 33.11%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- LX Semicon is a fabless company that only handles chip design rather than manufacturing chips in its own plant.
- Its mainstay product is the display driver IC (DDI), a core component that sends signals to each pixel of smartphone, TV, and monitor screens to render images.
- In Q1 2026 the revenue mix was mobile 42%, TV 27%, and IT devices 25%, with smartphone chips the largest.
- It is also growing new businesses such as automotive semiconductors and battery- and lighting-related chips, but their revenue contribution is still small.
- Because it only designs, actual production is entrusted to external foundries (contract chip manufacturers).
- For this reason, when foundry prices rise, the cost burden increases immediately.
- The latest close is ₩37,700 and market cap is ₩613.2 billion.
- The price sits below its 20-day line (₩42,962) and its 60-day line (₩52,209).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the past 14 days on a 0-100 scale) is 30.6, a neutral level.
- The one-month change is -21.9%, the three-month change is -23.1%, and the price stands -43.5% below its 52-week high.
- Relative strength versus the KOSPI is 5 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 95% of all stocks by strength.
- Over the past three months it lagged the index by 40.6%.
- Chart interpretation is best done alongside trading volume and the dates of disclosures.
- Financial stability is clearly good.
- The debt ratio (debt to equity) is 24%, very low.
- The current ratio, a measure of short-term solvency, is 442%, ample.
- Net debt (total borrowings minus cash) is -₩145.7 billion, that is, a net cash position with far more cash than debt.
- The FCF yield (the ratio of cash actually earned to market cap) is about 17%, high.
- That means the cash the company generates is large relative to its market cap.
- On valuation metrics, the P/E ratio is 7.42x and P/B is 0.54x, trading below net asset value.
- EV/EBIT (enterprise value divided by operating profit, a P/E that also reflects debt and cash) is a low 4.5x.
- That said, this P/E of 7.7x is based on last year's (2025) finalized profit.
- With this year's profit falling, the actual felt valuation is higher than this, a point to weigh alongside.
- The dividend yield is 3.8% (₩1,500 per share), and maintaining the dividend even as profit declines is a stabilizing factor.
- Results have been on a downhill slope for several years.
- Revenue fell from ₩1,898.8 billion in 2021 to ₩1,639.1 billion in 2025.
- Net profit dropped sharply over the same period from ₩296.4 billion to ₩82.6 billion.
- In 2025 revenue fell 12% versus the prior year, operating profit fell 35%, and net profit fell 37%.
- In Q1 2026 the decline steepened: revenue of ₩388.8 billion (-18%), operating profit of ₩20.6 billion (-66%), and net profit of ₩11.2 billion (-75%).
- A 9% year-on-year drop in small mobile DDI revenue was at the heart of the weakness.
- Large TV and IT DDI held up, rising 4%.
- Higher raw material costs and foundry price hikes also weighed on profitability.
- That said, the first quarter is seasonally the weakest.
- There is room for a gentle recovery in the flow of second-half new product launches.
- The company's own revenue and profit targets for this year are not confirmed via disclosure, so the profit outlook is presented only as an estimate reflecting the recent quarterly path and seasonality.
- On April 30, 2026, Q1 preliminary results came out via fair disclosure.
- They were at an 'earnings shock' level below market expectations, confirming weakness in mobile DDI.
- On April 23, there was an investor presentation (IR) and a notice previewing the earnings disclosure, a sign of the company continuing investor communication even amid weak results.
- At the March shareholders' meeting, a dividend of ₩1,500 per share was set.
- Notably, it kept the payout ratio at about 30% even as profit fell.
- On June 1, a corporate governance report was disclosed.
- There were no growth-triggering disclosures such as individual orders or large contracts during this period.
- This is a stock where strengths and weaknesses split sharply.
- Start with the strengths.
- It has a solid financial structure in a net cash position.
- A price below book value (P/B of 0.57x) and a 3.8% dividend support the downside.
- A 17% FCF yield signals cash generation that is large relative to market cap.
- On the other hand, the caution is the direction of results.
- Revenue and profit have fallen for several years, and the drop worsened in Q1 2026.
- With revenue concentrated in smartphone and TV DDI, results swing heavily with demand in these markets and with foundry prices.
- New businesses such as automotive still contribute little profit.
- In sum, on assets, cash, and dividends the undervaluation is clear.
- But until signs of a profit turnaround appear, one must also weigh that the 'cheap price' reflects weak results.
- A recovery in mobile DDI demand and a larger profit contribution from new businesses are the points to watch.
🔎 Valuation vs peers Undervalued
Compared mainly against fabless and display-semiconductor firms that design display driver ICs (DDI). Anapass, a DDI and timing-controller fabless firm, is the most direct peer, and Seoul Semiconductor is a fabless semiconductor firm for displays and lighting.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Anapass | 59.27x | 2.13x | 3.60% |
| Seoul Semiconductor | 0.00x | 0.89x | -8.30% |
From the standpoint of assets, cash, and dividends, it trades at a clearly lower valuation than its peers. Unlike peers Anapass and Seoul Semiconductor, whose P/E is far higher or cannot be calculated due to losses or low profit, LX Semicon is profitable while holding a P/B of 0.57x, net cash, and a 3.8% dividend. There is a caveat to note, however. The P/E of 7.7x is based on 2025 finalized profit, and with 2026 profit falling it is higher on a forward basis. In other words, much of the 'cheap price' reflects weak results. Relative to asset value the undervaluation is clear, but the direction of profit must turn before this can lead to a re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩37,700 and the market capitalization is ₩613.2 billion. The price sits below its 20-day moving average (₩42,962) and below its 60-day moving average (₩52,209). 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 30.6, a neutral level. The one-month change is -21.9%, the three-month change is -23.1%, and the position relative to the 52-week high is -43.5%. Relative strength versus the KOSPI is 5 (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 5% of all stocks. Over the past three months it lagged the index by 40.6%. 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 -40.59% / 6M -54.83% / 12M -75.81%
Key metrics vs sector median
Valuation
The P/E of 7.42x is below the sector median (27.09x). The P/B of 0.54x is below the sector median (2.10x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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)
DCF (discounted cash flow) estimate — discount rate 11.0%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.607x. A reference range that shifts materially with assumptions.
Profitability & financials
The operating margin is 6.6%. The debt ratio is 24.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.2B | $1.1B | -12.14% ↓ slower |
| Operating profit | $85.5M | $110.7M | $72.1M | -34.85% ↓ slower |
| Net profit | $67.1M | $86.5M | $54.8M | -36.68% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.4B | $1.3B | $1.2B | $1.1B |
| Operating profit | $245.0M | $205.9M | $85.5M | $110.7M | $72.1M |
| Net profit | $196.5M | $154.9M | $67.1M | $86.5M | $54.8M |
| Revenue CAGR | 4-yr avg -3.61% | ||||
Revenue fell 12.1% year over year (2023 ₩1.9 trillion → 2024 ₩1.9 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 34.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.6%. The two-year revenue CAGR is -7.2%. In the most recent quarter (Q1 2026), revenue was 18.4% lower 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.
- The dividend yield, at 4.0%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 12.1% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-04-30EarningsQ1 2026 consolidated preliminary results via fair disclosure. Revenue of ₩388.8 billion (-18% YoY), operating profit of ₩20.6 billion (-66%), net profit of ₩11.2 billion (-75%). Weakness in small mobile DDI was the main cause.Short-term: the plunge in profit confirms weak results, pressuring the price to the downside. Mid-term: whether a seasonal recovery comes in the second half is the key. Source
- 2026-04-23IRInvestor presentation (IR) held and earnings disclosure preview notice. Investor communication continues even amid weak results.Mid-term: a channel providing information on business direction and new-business progress. Source
- 2026-03-26DividendAt the annual shareholders' meeting, the 2025 year-end dividend (₩1,500 per share, payout ratio about 30%) was confirmed. Dividend maintained despite lower profit.Mid-term: a downside-support factor with a dividend yield around 3.8%. Source
- 2026-06-01FilingCorporate governance report disclosed. Routine reporting of the state of governance.Mid-term: limited direct impact on results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue ₩388.8 billion, operating profit ₩20.6 billion | revenue ₩388.8 billion, operating profit ₩20.6 billion | Confirmed | link |
| Dividend per share (DPS) | ₩1,500 | ₩1,500 | Confirmed | link |
| Trailing P/E | 7.71x | — | Unverified | link |
| 2026 net profit outlook | approx. ₩50.0 billion | — | Unverified | — |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-23Disclosure
- 2026-04-23EarningsEarnings disclosure
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business 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.