LX Hausys makes and sells building and decorative materials ('LX Z:IN') such as insulation, PVC windows, flooring, engineered stone, and wallpaper, along with automotive materials and industrial films, so its results are heavily swayed by two variables: construction and interior demand, and raw-material prices for inputs like PVC and MMA. After a 2025 loss, it rebounded sharply to operating profit of ₩45.9 billion (+549.7%) in Q1 2026, with a single quarter's operating profit exceeding the prior full-year operating profit, and at a P/B of 0.32x the share price is set at about one-third of net assets. What stands out lately is that if the earnings recovery confirmed in Q1 continues through the remaining quarters, the low P/B and forward P/E come into focus as undervaluation appeal, whereas with a debt ratio of 160% and an interest coverage ratio below 1x, if construction demand cools again or costs spike and the recovery stalls, the financial burden returns to the fore, making the sustainability of earnings normalization the fork in the road for this stock.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 11.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.3% higher than a year earlier.
- ROE is -5.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder LX Holdings 30.07% (corporate)
Controlling bloc incl. related parties 30.13%
With the controlling bloc holding 30%, the ownership structure is stable.
🔎 In-depth analysis
- LX Hausys makes and sells materials that go into homes and buildings.
- Its largest pillar is building and decorative materials, where it produces insulation, PVC windows (sashes), flooring, engineered stone, wallpaper, and surface materials used in kitchen furniture, selling them under its own brand 'LX Z:IN.' Its second pillar is automotive materials and industrial films, supplying lightweight parts that make up or cover automotive interiors and surfaces, and various industrial films.
- It is the former LG Hausys, which split from LG in 2021 and joined the LX Group, and the center of its business is not advanced devices like semiconductors or batteries but a B2B/B2C materials business tied to interior and construction conditions.
- Accordingly, the company's results are heavily swayed by two variables: 'construction and interior demand (the volume of building and renovating homes)' and 'raw-material prices for inputs like PVC and MMA.'
- The latest close is ₩31,100 and the market cap is ₩278.9 billion.
- The price sits below the 20-day line (₩32,368) and below the 60-day line (₩33,882).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward momentum over the past 14 days on a 0-100 scale) is 43.4, a neutral level.
- The one-month change is -1.4%, the three-month change is +11.9%, and the position versus the 52-week high is -26.8%.
- Relative strength versus the KOSPI is 35 (1-99, converting the past year's return versus the index with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 65% of all stocks by strength.
- Over the past three months it has lagged the index by 13.0%.
- Chart readings are best viewed together with trading volume and disclosure dates.
- Because the 2025 confirmed results were a loss, a P/E ratio on past results (how many times one year's net profit the share price represents) cannot be calculated.
- However, the P/B (how many times net assets per share) at 0.33x is well below 1x, meaning the share price is set at about one-third of the company's net assets (roughly ₩93,025 per share).
- This is not a stock with a high P/B but rather one priced low relative to asset value.
- On profitability, ROE (the ratio earned in a year on shareholders' equity) of -5.3% and an operating margin of 0.4% bottomed out in 2025, and with a debt ratio of 160.1% and an interest coverage ratio of 0.33, it was a year of heavy financial burden in which a single year's operating profit could not fully cover interest.
- The key here is that all these metrics reflect the single loss-making year of 2025, a backward-looking snapshot.
- Because the trend already shifted dramatically in Q1 2026 to operating profit of ₩45.9 billion (+549.7% versus the same period a year earlier), the forward P/E reflecting future earnings is closer to the actual picture when valuing the company.
- Compared with same-sector KCC at a P/E of 2.98x and Hansol at 16.5x, on the premise that earnings normalize, the forward P/E is not in a position that can be called expensive.
- Five years of revenue ran ₩3.5 trillion in 2021, ₩3.6 trillion in 2022, ₩3.5 trillion in 2023, ₩3.6 trillion in 2024, and ₩3.2 trillion in 2025, broadly a stagnant trend staying in the low ₩3 trillion range (5-year CAGR of -2.1%).
- The larger swings were on the earnings side.
- Operating profit fell sharply from ₩109.8 billion in 2023 and ₩97.5 billion in 2024 to ₩13.1 billion in 2025, and net profit swung to a loss of -₩43.9 billion in 2025.
- By quarter, Q4 2025 posted a large net loss of -₩28.9 billion, marking that year's bottom.
- But in Q1 2026 the trend turned clearly, with revenue of ₩814.7 billion (+4.3%) and operating profit of ₩45.9 billion (+549.7% versus the same period a year earlier), and a single quarter's operating profit (₩45.9 billion) already exceeded the 2025 full-year operating profit (₩13.1 billion).
- Earnings are reviving because the weak construction and interior demand and raw-material burden that weighed on 2025 results have passed their peak, so margins are returning to a normal track.
- This year's expected earnings being set at this level is grounded in the fact that the Q1 recovery was confirmed as actual results.
- The forward P/E is precisely a figure reflecting this turned earnings trend.
- That said, given the business's characteristics, there is seasonality in which Q2-Q3 revenue is larger than Q1, so whether the strength of the recovery continues through the full year is something to confirm in later quarterly results.
- The recent flow ties an earnings inflection together with financing.
- On April 30, a preliminary results (unaudited) disclosure first signaled that Q1 operating profit rose sharply, and the May 14 quarterly report confirmed those figures.
- Around this announcement, trading volume rose sharply, forming an April-May high.
- In the same period, the April 30 and May 22 disclosures showed successive acquisitions of bonds issued by other corporations and issuance of debentures, items to review together with intra-group fund management and refinancing of maturing debt.
- After the March 24 regular shareholders' meeting, there was a change of CEO and management turnover, and on June 1 changes in the holdings of executives and major shareholders were disclosed.
- Such disclosures are primary sources and a direct channel to confirm major company changes.
- The heart of this stock is 'an inflection where earnings bottom and turn.' The strengths are clear.
- After bottoming with a 2025 loss, Q1 2026 operating profit rebounded sharply to ₩45.9 billion (+549.7%), and a single quarter's operating profit already exceeded the prior full-year operating profit.
- On top of this, at a P/B of 0.32x the share price is set at about one-third of net assets, providing a thick safety cushion on the asset-value side, and on the premise that earnings normalize the forward P/E reads as undervalued versus the same sector.
- The cautions must be viewed alongside.
- With a debt ratio of 160% and an interest coverage ratio below 1x, it is a structure where the financial burden grows if earnings shrink as in 2025, and results are sensitive to construction and interior demand and raw-material prices for PVC and MMA, so whether the Q1 recovery continues through the year needs confirmation in later quarterly results.
- In sum, if the earnings recovery confirmed in Q1 continues through Q2-Q4, the low P/B and a forward P/E around 4x can come into focus as undervaluation appeal, whereas if construction demand cools again or costs spike and the recovery stalls, the financial burden can return to the fore, making the sustainability of earnings normalization the fork in the road for this stock.
🔎 Valuation vs peers Inconclusive
Instead of the rubber and plastics industry code, the comparison uses companies whose actual business (building and interior materials) overlaps, with KCC competing directly in windows, paints, and building materials, and Hanssem sharing the same end market of interior and renovation demand.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KCC | 2.48x | 0.49x | 19.66% |
| Hanssem | 17.90x | 2.07x | 11.58% |
(a) Versus KCC and Hanssem, whose actual businesses overlap, LX Hausys' P/B (0.36x) is the lowest position. (b) However, this low P/B is more accurately seen not as simple undervaluation but as a discount created by profitability and financial burden, the most recent full-year loss, low ROE (-5.3%), and an interest coverage ratio below 1x. KCC having a higher P/B yet a lower P/E is because it is profitable (ROE 19.7%). (c) The 2025 loss-based trailing metrics are low-confidence at an inflection, and the forward view can only be inferred from a DART-confirmed Q1-results-based seasonality approximation rather than an official company forecast. Until it is confirmed whether the Q1 recovery is sustained through Q2-Q4, it is hard to conclude 'cheap or expensive,' so we regard it as inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩888.8 billion | approx. ₩80.3 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩31,100 and the market capitalization is ₩278.9 billion. The price sits below its 20-day moving average (₩32,368) and below its 60-day moving average (₩33,882). 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 43.4, a neutral level. The one-month change is -1.4%, the three-month change is +11.9%, and the position relative to the 52-week high is -26.8%. Relative strength versus the KOSPI is 35 (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 35% of all stocks. Over the past three months it lagged the index by 13.0%. 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 -13.04% / 6M -31.80% / 12M -59.04%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.33x is below the sector median (0.75x).
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 -5.3%, below the sector average (6.0%). The operating margin is 0.4%. The debt ratio is 160.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.3B | $2.4B | $2.1B | -11.01% ↓ slower |
| Operating profit | $72.8M | $64.6M | $8.7M | -86.60% ↓ slower |
| Net profit | $41.0M | $29.4M | -$29.1M | -199.00% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.3B | $2.4B | $2.3B | $2.4B | $2.1B |
| Operating profit | $46.7M | $9.9M | $72.8M | $64.6M | $8.7M |
| Net profit | $8.7M | -$77.6M | $41.0M | $29.4M | -$29.1M |
| Revenue CAGR | 4-yr avg -2.10% | ||||
Revenue fell 11.0% year over year (2023 ₩3.5 trillion → 2024 ₩3.6 trillion → 2025 ₩3.2 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 86.6% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.1%. The two-year revenue CAGR is -5.1%. In the most recent quarter (Q1 2026), revenue was 4.3% 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
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 11.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-30EarningsQ1 2026 consolidated preliminary results (fair disclosure) - advance disclosure that operating profit improved substantially year on yearShort term: the disclosure that first signaled an earnings rebound versus loss-making 2025, a direct trigger for the price and volume moves. Medium term: the durability of the recovery needs verification through later confirmed quarterly results. Source
- 2026-05-14FilingQuarterly report (2026.03) - confirmed results including Q1 revenue of ₩814.7 billion and operating profit of ₩45.9 billion recordedShort term: confirms the preliminary figures, raising the credibility of the results. Medium term: a reference point for gauging the post-Q2 flow when earnings concentrate seasonally. Source
- 2026-05-22Update[Correction] Decision on debt guarantees for others - corrective disclosure on the content of debt guarantees for affiliates and othersShort term: limited direct P&L impact. Medium term: an increase in the guarantee balance is a contingent-liability and financial-burden factor, requiring a check together with the debt ratio and interest coverage ratio. Source
- 2026-03-24FilingResults of the regular shareholders' meeting and change of CEO - management turnoverShort term: immediate earnings impact is small. Medium term: the new management's business and cost strategy influences the direction of the recovery phase. Source
- 2026-06-01FilingDisclosure of the corporate governance report - regular disclosure of governance status such as the board and shareholder rightsShort term: limited direct price impact. Medium term: material for checking governance transparency and shareholder-return policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩45.9 billion | ₩45.9 billion | Confirmed | link |
| Q1 2026 revenue | ₩814.7 billion | ₩814.7 billion | Confirmed | link |
| 2025 annual net profit (controlling interest) | -₩43.9 billion | -₩43.9 billion | Confirmed | link |
| P/B (share price / net assets per share) | 0.36x | BPS approx. ₩93,025 ₩33,200 ÷ BPS ≈ 0.36x | Confirmed | link |
| 2026 operating profit (seasonality approximation) | approx. ₩191.6 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Amended filing
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-27EarningsEarnings disclosure
- 2026-03-24Disclosure
- 2026-03-24OwnershipLargest-shareholder ownership change report
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-24Amended filing
📖 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.