LS Eco Energy is a wire-and-cable maker built around its Vietnamese production arm LS-VINA, producing extra-high-voltage and high-voltage power cables along with copper and aluminum wire rod; this cable business accounts for about 80% of consolidated revenue, and it exports 400kV-class extra-high-voltage cable to European and U.S. grids while growing its high-value-added mix. In April it flagged record quarterly revenue in its preliminary Q1 results, and it is broadening its identity from a pure cable maker into a power-and-materials company, pursuing a non-China rare-earth supply chain through an investment in a rare-earth metals plant in Vietnam and a mutual convertible-bond investment with an Australian rare-earth firm. What stands out is a mix of strength and caution: it pairs the highest ROE with the lowest P/E in the cable sector, a strong combination of profitability and relative valuation, while its new businesses are still early-stage and take time to contribute to revenue, and results can swing with copper prices, exchange rates and the pace of grid orders.
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 10.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 25.0% higher than a year earlier.
- ROE is 20.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.0%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder LS Cable & System 63.35% (corporate)
Controlling bloc incl. related parties 63.39%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- LS Eco Energy is a Vietnam-based wire-and-cable and power-cable company.
- At its core is the Vietnamese production arm LS-VINA, which makes extra-high-voltage and high-voltage power cables plus copper and aluminum wire rod, accounting for about 80% of consolidated revenue.
- The rest comes from LSCV, which makes communications cable, medium- and low-voltage power cable, and bus duct (metal power-distribution components that carry electricity in bulk).
- Recently it has been exporting 400kV-class extra-high-voltage cable to European and U.S. grids, building up its high-value-added product mix.
- On top of this it is adding rare-earth metals and permanent magnets, plus submarine and superconducting cable, as new growth pillars, broadening its identity from a simple cable maker into a power-and-materials company.
- The latest close is ₩42,750 and the market cap is ₩1.3 trillion.
- The price sits below the 20-day line (₩56,015) and below the 60-day line (₩66,467).
- Trading below both the short- and mid-term moving averages, the trend looks pressured.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 34.3, a neutral reading.
- The one-month change is -24.6%, the three-month change is -0.4%, and the price sits -54.2% from its 52-week high.
- Relative strength versus the KOSPI is 40 (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), placing it in roughly the top 60% of all stocks by strength.
- Over the past three months it lagged the index by 24.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Profitability is this company's clearest strength.
- ROE (how much it earns in a year on its equity) is 20.1%, a standout level for the cable sector.
- Operating margin is 7.0%, about double the domestic cable industry average.
- That said, valuation is not low in absolute terms: the P/E ratio (how many times one year's earnings the price represents) is 40.5x and the P/B (how many times net assets the price represents) is 8.1x.
- The debt ratio (debt against equity) is 235%, high as is typical for the sector, but with an interest-coverage ratio of 10.6x it has ample capacity to service that interest.
- Factoring in debt shifts the picture somewhat: net debt (total borrowings minus cash) is ₩95.9 billion, and EV/EBIT (enterprise value divided by operating profit, a debt-inclusive version of the P/E) is 26.9x.
- The FCF yield (actual cash generated against market cap) is 4.1%, meaning it steadily produces cash for a company investing in cable capacity.
- The grain of the growth is far clearer in earnings than in revenue.
- 2025 revenue was ₩960.1 billion, up 10.5% from the prior year, but operating profit jumped 49.2% to ₩66.8 billion and net profit rose 34.7% to ₩42.1 billion.
- This means the structure is shifting so that the same revenue leaves more profit, as the high-value-added extra-high-voltage cable mix grows.
- Q1 2026 continued this trend: cumulative revenue of ₩285.5 billion, up 25.0% year on year, and operating profit of ₩20.1 billion, up 31.1%.
- This came from extra-high-voltage exports to Europe combining with large domestic volumes in Vietnam.
- The company has set a target of ₩1.8 trillion in revenue by 2030 by growing submarine cable and rare-earth permanent magnets.
- Factoring in expanding extra-high-voltage exports and raw-material price trends, this year's earnings have room to step up again from last year.
- This year's filings are anchored by new-business entry and regular earnings.
- The March annual report finalized 2025 results, and April's preliminary Q1 figures, disclosed via fair disclosure, flagged record quarterly revenue.
- In March it disclosed a key management matter related to investment judgment, laying out its direction in new businesses such as rare earths.
- Per the company's own announcements, it decided to invest in a rare-earth metals plant in Vietnam and struck a strategic partnership with an Australian rare-earth firm via a mutual convertible-bond investment, pursuing a non-China rare-earth supply chain.
- It also began commercializing 400kV extra-high-voltage cable, targeting the high-value-added market centered on the U.S.
- In May, regular filings such as the large-business-group status and the governance report followed.
- The strong stretches and the ones to watch are clearly divided.
- The strengths are clear: this is a name that pairs the highest ROE with the lowest P/E in the cable sector, with a good combination of profitability and relative valuation.
- Its margins are stepping up through extra-high-voltage exports, and it has layered on several growth options in rare earths, submarine cable and superconductors.
- There are cautions too.
- Absolute P/E and P/B are not low, so growth has to actually translate into results to justify them.
- Most of the new businesses are early-stage, so it will take time before they contribute to revenue.
- Results can swing with raw-material prices such as copper, exchange rates, and the pace of European and U.S. grid orders.
- In short, it is strong when the grid-investment cycle and new-business execution go smoothly, and the burden grows when raw-material pressure and order delays overlap.
🔎 Valuation vs peers Fairly valued
Compared against domestically listed wire-and-cable and power-cable companies; given that extra-high-voltage and power cable is the core business, Taihan Cable & Solution and Gaon Cable serve as the primary peers, with the power-equipment affiliate LS ELECTRIC as a reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Taihan Cable & Solution | 64.70x | 3.40x | 5.26% |
| Gaon Cable | 74.84x | 7.95x | 10.62% |
| LS Electric | 99.12x | 13.73x | 13.85% |
(a) Position versus true peers: the P/E of 40.5x is actually lower than Taihan Cable & Solution at 78x, Gaon Cable at 90x, and the reference LS ELECTRIC at 124x. Meanwhile its ROE of 20.1% is the highest among them. Within the cable sector it holds a relatively undervalued position, with the best profitability yet the lowest P/E. (b) Premium/discount: given the high ROE and earnings growth, it can be viewed as trading at a discount to peers. (c) Trailing limits and the forward case: a P/E of 40x on last year's finalized earnings is not low in absolute terms, but with earnings rising sharply each year it falls to the low 30s on a forward basis. Reflecting the company's own direction of expanding extra-high-voltage exports and improving margins, the absolute-valuation burden is largely offset by growth. Still, since most of the new businesses are early-stage and the assessment hinges on how fast results materialize, the overall read is fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩42,750 and the market capitalization is ₩1.3 trillion. The price sits below its 20-day moving average (₩56,015) and below its 60-day moving average (₩66,467). 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 34.3, a neutral level. The one-month change is -24.6%, the three-month change is -0.4%, and the position relative to the 52-week high is -54.2%. Relative strength versus the KOSPI is 40 (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 40% of all stocks. Over the past three months it lagged the index by 24.2%. 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 -24.17% / 6M -27.71% / 12M -45.05%
Key metrics vs whole-market median
Valuation
The P/E of 31.12x is above the whole-market median (13.81x). The P/B of 6.26x is above the whole-market median (1.15x).
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 6.5%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.285x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 20.1%, above the whole-market average (5.0%). The operating margin is 7.0%. The debt ratio is 234.9%, 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 | $484.5M | $575.9M | $636.3M | +10.48% ↓ slower |
| Operating profit | $19.5M | $29.7M | $44.3M | +49.16% ↓ slower |
| Net profit | $2.7M | $20.7M | $27.9M | +34.66% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $497.5M | $542.5M | $484.5M | $575.9M | $636.3M |
| Operating profit | $18.7M | $18.2M | $19.5M | $29.7M | $44.3M |
| Net profit | $9.7M | -$1.3M | $2.7M | $20.7M | $27.9M |
| Revenue CAGR | 4-yr avg 6.35% | ||||
Revenue rose 10.5% year over year (2023 ₩731.1 billion → 2024 ₩869.0 billion → 2025 ₩960.1 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 49.2% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.3%. The two-year revenue CAGR is 14.6%. In the most recent quarter (Q1 2026), revenue was 25.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 20.1% points to solid profitability.
- Revenue grew 10.5% 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
- 2026-04-14EarningsFair-disclosure filing of preliminary Q1 2026 consolidated operating results. Cumulative revenue ₩285.5 billion (+25.0% year on year), operating profit ₩20.1 billion (+31.1%), net profit ₩14.2 billion (+11.7%) for record quarterly revenue.Near term: confirmation of improving earnings from expanding extra-high-voltage exports and Vietnamese domestic demand. Medium term: supports the rising trend in the high-value-added product mix. Source
- 2026-03-26FilingDisclosure of a key management matter related to investment judgment. Communicated management decisions tied to new growth businesses such as rare earths.Medium term: a signal of expansion into materials beyond the core cable business. Being early-stage, the revenue contribution comes with a time lag. Source
- 2026-03-16FilingFiled the 2025 annual report. Finalized annual revenue of ₩960.1 billion, operating profit of ₩66.8 billion (+49.2% year on year), and net profit of ₩42.1 billion (+34.7% year on year).Medium term: confirms a margin-improvement structure in which earnings growth greatly outpaces revenue growth. Source
- 2026-06-01FilingLarge-business-group status disclosure (once a year, for Q1). Regular reporting of the affiliate status within the LS business group.Medium term: a regular check of governance and affiliate relationships, with limited impact on earnings. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-08OwnershipLargest-shareholder ownership change report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-14EarningsFair-disclosure notice
- 2026-04-06OwnershipLargest-shareholder ownership change report
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit 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.