LTC (170920) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
LTC makes process chemicals — stripping solutions, cleaning solutions, and etchants — that semiconductor and display lines must repeatedly replenish as they run, supplying them to large domestic manufacturers, and it also holds subsidiaries such as LSE, which makes wafer-cleaning equipment. In the first quarter of 2026 operating profit rose 92% and net profit 156%, quickening the pace of core earnings, and the company disclosed capital-return plans including an in-kind dividend and a treasury-share cancellation premised on the listing of its subsidiary LSE. What stands out lately is that increased earnings power combined with a low forward P/E strengthens the case if that power continues quarter to quarter and value realization at the subsidiary advances; but the core of the capital-return plan is conditional on LSE's listing succeeding, and dilution from convertible-bond conversion and a 296% debt ratio are conditions to confirm alongside.
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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 “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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 ratio, current ratio and interest burden all look healthy.
- Revenue rose 12.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 30.3% higher than a year earlier.
- ROE is 11.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.5%.
- 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 Choi Ho-sung 27.49% (individual)
Controlling bloc incl. related parties 28.96%
With the controlling bloc holding 29%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
LTC earns its living from 'process chemicals' used in making semiconductors and displays. Its signature products are stripping solutions (PR strippers) that peel off the photoresist applied when etching circuits, cleaning solutions that wash contamination off wafer and panel surfaces, and etchants that shave away only the desired areas. These materials are consumables that must be used and replenished continuously as lines run, so revenue follows repeatedly the higher a customer's utilization rate. Originally starting in display materials, it has broadened into semiconductor materials. Consolidated subsidiaries complement the business: LSE is an equipment company that makes semiconductor wafer-cleaning equipment, while LTCAM and others handle semiconductor cleaning and etching materials and infrastructure. In short, it bundles 'consumable chemicals (recurring revenue) plus equipment (subsidiaries),' and its customers are large domestic semiconductor and display manufacturers.
The latest close is ₩39,300 and the market capitalization is ₩415.2 billion. The price sits below its 20-day moving average (₩43,342) and below its 60-day moving average (₩45,508). 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 46.7, a neutral level. The one-month change is -11.9%, the three-month change is -20.8%, and the position relative to the 52-week high is -32.0%. Relative strength versus the KOSDAQ is 89 (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 89% of all stocks. Over the past three months it outpaced the index by 34.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On confirmed annual (2025) results, the P/E ratio (how many times a year's earnings the share price represents) is 86.24x, the P/B (how many times net assets) is 3.04x, ROE (how much is earned in a year on equity) is 3.7%, and the operating margin is 9.6%. At nearly 90x, the P/E looks expensive at a glance, but this number should not be taken at face value. It is a trailing figure calculated on 'last year's (2025) full-year earnings,' and because 2025 net profit was temporarily low at ₩4.8 billion, the small denominator inflates the multiple sharply. In fact, in the single first quarter of 2026 the company posted operating profit of ₩18.1 billion and net profit of ₩17.1 billion, so the texture of its earnings changed entirely. For a company passing through an earnings inflection like this, one should look at what it will earn this year rather than last year's numbers, and the forward P/E reflecting this year's expected earnings is low versus peer materials companies. In other words, judging it 'expensive' from the trailing P/E alone reads the direction backwards. The debt ratio (debt to equity) of 296.4% is on the high side, but with a current ratio of 179.6% and an interest coverage ratio of 3.28x, short-term liquidity and interest-servicing ability are in place, and it is fair to view this as an item with room to improve naturally as earnings grow. The cash dividend yield of about 0.2% is low in absolute terms, but the company is also using 'share-count reduction and one-off returns' such as treasury-share cancellation and a subsidiary-listing-linked in-kind dividend, so the strength of returns is hard to gauge from the cash dividend yield alone.
Over five years, revenue moved from ₩78.3 billion in 2021 to ₩113.4 billion in 2023 to ₩310.4 billion in 2025 — with swings between loss and profit, but a clear upward trend. Operating profit also turned around and expanded, from -₩8.4 billion in 2021 to ₩29.6 billion in 2025. The most recent quarter shows the flow more clearly: first-quarter 2026 revenue was ₩98.8 billion, up 30.3% year on year; operating profit was ₩18.1 billion, up 92.0%; and net profit was ₩17.1 billion, up 156.5%. Revenue up in the 30s while profit roughly doubled means the 'leverage' — profit stacking rapidly above fixed costs as line activity rises — has begun to kick in in earnest. It is the combined result of semiconductor customers' capex and utilization recovery, an expanded product range into semiconductor materials, and the recurring demand characteristic of consumable materials. The forward P/E reflecting this earnings power shows a picture entirely different from last year's high multiple. Supporting this is that a single quarter's operating profit (₩18.1 billion) reaches about 60% of last year's full-year operating profit (₩29.6 billion), a strong start to this year's earnings.
The center of the recent narrative is the listing of subsidiary LSE and the capital returns linked to it. In August 2025 the company announced a 'capital-return plan to enhance shareholder value' by fair disclosure; its core is that, assuming LSE's listing, 20% of LSE's public-offering shares would be paid to LTC's general shareholders as an in-kind dividend, and 50% of LTC's attributable portion of LSE's year-end dividend would be paid back to shareholders (a differentiated method excluding the largest shareholder and specially related parties). On the same day it also decided to cancel 300,000 common shares (about ₩3.27 billion), showing its commitment to returns through action. Separately, in July 2025 it decided to invest ₩10 billion (5.27% of equity) in semiconductor-materials R&D and production facilities, and in a March 2026 amendment it pushed the investment completion date from March 31, 2026 to May 31, 2026 — but with the size and purpose unchanged, this reads as a schedule adjustment rather than a cancellation. Separately, it has issued convertible bonds (CBs), and from the second half of 2025 disclosures of conversion-right exercises, conversion-price adjustments, and call-option exercises continued — a dilution factor that increases the share count and should be watched alongside.
The strengths are clear. The pace of core earnings from process chemicals — sold repeatedly the more lines run — quickened distinctly in 2026 (first-quarter operating profit +92%, net profit +156%), and the forward P/E reflecting this is low versus peer materials companies, reading as a zone where the price is not expensive relative to earnings. Added to this is a commitment to capital returns confirmed in disclosures, including an in-kind dividend and treasury-share cancellation linked to subsidiary LSE's listing. There are also conditions to note. First, the core of the capital-return plan is conditional on 'LSE's listing succeeding,' so if the listing is delayed or falls through, the size of the returns and the recognition of value could change. Second, if convertible bonds turn into shares, the share count rises and existing holders' stakes may be partly diluted, and the 296% debt ratio is an item to keep confirming for whether it declines as earnings stack up. In sum, it is fair to view this stock as 'strong when increased earnings power continues quarter to quarter and value realization at the subsidiary advances, and weak when the subsidiary listing is delayed or the earnings-growth pace stalls.'
🔎 Valuation vs peers Inconclusive
KOSDAQ and KOSPI materials companies overlapping in business substance (process chemicals for semiconductor and display: stripping solutions, cleaning solutions, etchants, precursors) were taken as the peer set. The figures are current-price values computed with an on-site tool (tools/peers.py).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dongjin Semichem | 20.40x | 1.79x | 11.51% |
| ENF Technology | 12.74x | 1.42x | 12.37% |
| Hansol Chemical | 17.25x | 2.19x | 13.99% |
| DNF | 121.20x | 1.01x | 0.83% |
(a) Looking at its position versus the true peer set (Dongjin Semichem, ENF Technology, Hansol Chemical, DNF), LTC's last-year P/E of 89.86x is far above ENF (12.78x), Hansol Chemical (22.85x), and Dongjin Semichem (28.5x) and short only of DNF (162x). Its P/B of 3.34x is also the highest among peers. (b) On the surface this is a premium zone. However, (c) this P/E has the major limitation of being a 'last-year confirmed (trailing)' figure from 2025, when net profit was temporarily low at ₩4.8 billion. At an inflection where earnings have shifted sharply, last year's P/E distorts actual value. In other words, it is in a state of 'most expensive on last year's basis, cheaper than peers on this year's approximate basis,' so it is hard to declare it cheap or expensive either way. On top of that, the listing value of subsidiary LSE is not fully captured in the consolidated P/E, so the comparison itself is limited — and the verdict is left inconclusive.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩106.6 billion | approx. ₩14.7 billion | approx. ₩3.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩39,300 and the market capitalization is ₩415.2 billion. The price sits below its 20-day moving average (₩43,342) and below its 60-day moving average (₩45,508). 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 46.7, a neutral level. The one-month change is -11.9%, the three-month change is -20.8%, and the position relative to the 52-week high is -32.0%. Relative strength versus the KOSDAQ is 89 (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 89% of all stocks. Over the past three months it outpaced the index by 34.7%. 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 +34.68% / 6M +113.25% / 12M +233.04%
Key metrics Computed vs sector median
Valuation
The P/E of 86.24x is above the sector median (14.15x). The P/B of 3.04x is above the sector median (0.90x). 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.
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, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.2%, above the sector average (4.0%). The operating margin is 11.5%. The debt ratio is 120.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $79.6M | $194.6M | $218.0M | +12.06% ↓ slower |
| Operating profit | -$11.3M | $17.0M | $20.8M | +22.51% |
| Net profit | -$18.6M | $7.1M | $3.4M | -52.28% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $55.0M | $154.1M | $79.6M | $194.6M | $218.0M |
| Operating profit | -$5.9M | $7.6M | -$11.3M | $17.0M | $20.8M |
| Net profit | -$6.7M | $1.5M | -$18.6M | $7.1M | $3.4M |
| Revenue CAGR | 4-yr avg 41.11% | ||||
Revenue rose 12.1% year over year (2023 ₩113.4 billion → 2024 ₩277.0 billion → 2025 ₩310.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 22.5% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 41.1%. The two-year revenue CAGR is 65.5%. In the most recent quarter (Q1 2026), revenue was 30.3% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 11.2% points to solid profitability.
- Revenue grew 12.1% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-08-21IRCapital-return plan to enhance shareholder value (fair disclosure) — expanded amendment: assuming LSE's listing, a 20% in-kind dividend of public-offering shares and a 50% return of the LSE-attributable dividend, with a payout ratio of 15%+ over four yearsOver the medium term, a structure that returns the subsidiary's listing value directly to the parent's shareholders, raising expectations for capital returns. However, all conditions are premised on 'LSE's listing succeeding,' making it a conditional plan whose force weakens if the listing is delayed or falls through. Source
- 2025-08-21DividendTreasury-share cancellation decision — 300,000 common shares (planned cancellation amount about ₩3.27 billion), previously acquired treasury shares, planned cancellation date 2025-08-29 (no capital reduction)A direct capital return that raises per-share value by reducing the share count. As an actually executed return, it is positive both short and medium term for showing commitment through action. Source
- 2025-07-24FilingNew facility investment (voluntary disclosure) — ₩10 billion investment in semiconductor-materials R&D and production facilities (5.27% of equity), 2025-07-24 to 2026-03-31A growth investment broadening the core from display into semiconductor materials. Costs may be recognized ahead of the operation and mass-production timing, so results need confirming from a medium-term view. Source
- 2026-03-31Filing[Amendment] New facility investment (voluntary disclosure) — investment completion date changed from 2026-03-31 to 2026-05-31 (investment amount ₩10 billion and purpose unchanged)An amendment pushing only the period by about two months while keeping the size and purpose unchanged. The schedule delay is a slight drag on short-term momentum, but it is confirmed the investment is not being canceled. Source
- 2025-11-06UpdateReport on material matters (third party's convertible-bond call-option exercise) — call-option structure and conversion progress related to the issued convertible bonds (CBs)If the convertible bonds turn into shares, the share count rises and existing holders' stakes may be diluted. With conversion-right exercises and conversion-price adjustments continuing in the second half of 2025, the dilution factor should be watched alongside. Source
- 2026-05-14EarningsQuarterly report (2026.03) — first-quarter revenue ₩98.8 billion (+30.3%), operating profit ₩18.1 billion (+92.0%), net profit ₩17.1 billion (+156.5%)A document confirming through official results that the pace of earnings has quickened distinctly. A key basis for correcting the illusion that the trailing P/E looks high. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First quarter 2026 operating profit | ₩18.1 billion | (2026.03) DART | Confirmed | link |
| New facility investment amount, purpose, and period | ₩10.0 billion / R&D· / 2025-07-24~2026-05-31 | 2026-03-31 | Confirmed | link |
| Treasury-share cancellation size | 300,000 / approx. ₩3.3 billion / 2025-08-29 | — | Confirmed | link |
| This year's (2026) annual results seasonality approximation | revenue approx. ₩444.5 billion / operating profit approx. ₩93.4 billion / net profit approx. ₩67.3 billion, forward PER approx. 9.1x | — | Unverified | link |
Recent filings Source
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-14OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-04-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-31Amended filing
- 2026-03-30OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit 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.