Lake Materials (281740) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Lake Materials is an organometallic-compound materials company and the only domestic holder of the technology to make TMA (trimethylaluminum). Revenue breaks down as roughly 59% semiconductor materials, about 20% solar, about 14% LED, and about 6% petrochemical catalysts, and it is preparing mass production of lithium sulfide for solid-state batteries as a new growth axis. In March 2026 it decided on about ₩19.6 billion in new facility investment, and in May it issued ₩50.0 billion of convertible bonds with a 0% coupon and 0% yield-to-maturity to fund expansion and new businesses; a first-quarter signal that profit had passed its trough and turned to recovery was confirmed. The strengths are a semiconductor-precursor-centered portfolio and growth options in new hafnium High-K customers and the lithium-sulfide new business. The cautions are that a 163% debt-to-equity ratio and a 1.6x interest-coverage ratio leave little financial slack, and that the convertible bonds could become a long-term dilution factor.
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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 “Semiconductor Materials & Components” (Semiconductors & IT Components · Semiconductors), a type typically read first through forward P/E.
Semiconductor materials and components supply the inputs used in chip fabrication, and results move sharply ahead of and behind the chip investment cycle and customers' fab utilization. Because future earnings from recovering demand matter more than results already booked, the forward P/E — based on expected earnings — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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
- Revenue rose 1.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.8% higher than a year earlier.
- ROE is 8.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.4%.
- 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 Kim Jin-dong 27.92% (individual)
Controlling bloc incl. related parties 43.76%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis Reading
Lake Materials makes organometallic compounds. Its core technology is producing TMA (trimethylaluminum), aluminum bonded with methyl groups - a technology held by only four companies worldwide and, within the country, by this company alone. Semiconductor materials are the largest slice of revenue at about 59%, followed by solar materials at about 20%, LED materials at about 14%, and petrochemical catalysts at about 6%. That is, the precursors and High-K materials that go into semiconductor processes are the company's main revenue source, with solar, LED, and catalysts supporting the portfolio. Recently it has been preparing mass production of lithium sulfide, a key raw material for solid-state batteries, as a new growth axis.
The latest close is ₩12,430 and the market capitalization is ₩817.0 billion. The price sits above its 20-day moving average (₩11,599) and below its 60-day moving average (₩14,952). 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 50.3, a neutral level. The one-month change is -3.6%, the three-month change is -47.8%, and the position relative to the 52-week high is -54.9%. Relative strength versus the KOSDAQ is 48 (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 48% of all stocks. Over the past three months it lagged the index by 18.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation metrics look very expensive on the surface. The P/E (how many times one year's earnings the price represents) is 106.24x and the P/B (how many times book equity the price represents) is 5.87x. But it should be borne in mind that this P/E rests on 2025 results, when profit was heavily depressed. 2025 was a trough year in which net profit fell -63% from the prior year. Profitability is ordinary, with ROE (how much is earned in a year on equity) of 5.7% and an operating margin of 9.4%. The balance sheet carries a somewhat high debt-to-equity ratio of 163%, and interest coverage (how many times operating profit can cover interest) of 1.56x means the interest burden is not light. Bringing enterprise value into the picture, net debt (total borrowings minus cash) is about ₩180.6 billion, a net-borrowing rather than net-cash position. EV/Sales (enterprise value including debt divided by revenue) is 7.5x, so the value the market attaches relative to revenue is not low. In other words, once debt is included, the valuation burden reads as somewhat heavier than the P/E alone suggests.
Over five years revenue rose steadily from ₩81.9 billion (2021) to ₩141.2 billion (2025). Profit, by contrast, declined for three straight years from a peak operating profit of ₩35.4 billion in 2022 to ₩29.5 billion in 2023, ₩22.2 billion in 2024, and ₩13.3 billion in 2025. 2025 was a trough year of squeezed margins in which revenue rose +1.8% yet operating profit fell -40% and net profit fell -63%. The important change came in the first quarter of 2026. First-quarter revenue was ₩33.2 billion, up only +3.8%, but operating profit jumped +54% year on year to ₩4.2 billion and net profit surged +281% to ₩6.4 billion. That single quarter's net profit nearly matched the full-year 2025 net profit (₩7.7 billion). It is a signal that margins have passed a trough and turned to recovery. Looking ahead, securing new customers for hafnium-based High-K precursors in the semiconductor segment is seen as a variable that could lift second-half results. Added to that, lithium sulfide - with capacity slated to grow from 10 tons a year to 120 tons - is a medium- to long-term growth option as a solid-state-battery material. Reflecting this recovery trajectory, last year's P/E looks high, but on this year's forward earnings the multiple falls sharply.
Most recent disclosures converge on "facility investment and fundraising." In March 2026 the company decided on new facility investment of about ₩19.6 billion (22.5% of equity). In May it issued ₩50.0 billion of convertible bonds, both coupon and yield-to-maturity at 0%, keeping the cost of funds low. The plan is to use the proceeds for mass production of lithium sulfide for solid-state batteries and for facility investment in the semiconductor, solar, and catalyst segments. In February it held an IR presentation to share its business direction. In short, even in a trough for profit, the company is concentrating funds into expansion and a new business (lithium sulfide), preparing for the next growth cycle.
The strengths are clear. The company holds the country's only TMA-manufacturing technology and a semiconductor-precursor-centered portfolio, and in the first quarter of 2026 a signal appeared that profit had passed its trough and turned to recovery. Growth options are also attached in new hafnium High-K customers and the lithium-sulfide new business. Last year's 115x P/E looks daunting, but the key point is that this stems from depressed 2025 profit and that on this year's recovering earnings the multiple falls sharply. On the other side, there are cautions. A 163% debt-to-equity ratio and 1.6x interest coverage leave little financial slack, and the convertible-bond issuance could become a long-term factor for a rising share count (dilution). Until expansion and new-business results are confirmed in earnings, the valuation can be seen as having priced in recovery hopes in advance. In the end, if the semiconductor recovery and new customers and new businesses land in results as planned, it is strong; if the recovery is delayed, the high valuation and financial burden come into focus together.
🔎 Valuation vs peers Fairly valued
Compared against domestic semiconductor-precursor and specialty-chemical materials companies with similar business characteristics.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DNF | 121.20x | 1.01x | 0.83% |
| Hansol Chemical | 17.25x | 2.19x | 13.99% |
The 115x P/E on last year's results looks very high, but it rests on the 2025 trough of depressed profit (net profit -63%). For an earnings-inflection stock, the trailing P/E has serious limits. DNF, in the same semiconductor-precursor family, also has depressed profit and a trailing P/E above 100x - this is an industry-wide earnings trough, not a sign of overvaluation unique to this company. Compared simply with the larger, steadier-earning Hansol Chemical (P/E 21x), it looks expensive, but a materials stock at the start of a recovery should be viewed on a forward basis. Reflecting the first-quarter recovery trajectory, the forward P/E on this year's earnings is about 52x, well below the trailing figure. If new semiconductor customers and the lithium-sulfide new business land in results, that multiple is further justified. That said, the net-borrowing position and the potential dilution from the convertible bonds make it hard to view the valuation as unconditionally cheap, so for now the reading is fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩12,430 and the market capitalization is ₩817.0 billion. The price sits above its 20-day moving average (₩11,599) and below its 60-day moving average (₩14,952). 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 50.3, a neutral level. The one-month change is -3.6%, the three-month change is -47.8%, and the position relative to the 52-week high is -54.9%. Relative strength versus the KOSDAQ is 48 (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 48% of all stocks. Over the past three months it lagged the index by 18.4%. 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 -18.45% / 6M -35.74% / 12M -1.96%
Key metrics Computed vs sector median
Valuation
The P/E of 106.24x is above the sector median (14.15x). The P/B of 5.87x 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.
Profitability & financials
Return on equity (ROE) is 8.9%, above the sector average (4.0%). The operating margin is 10.4%. The debt ratio is 166.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $82.7M | $97.5M | $99.2M | +1.81% ↓ slower |
| Operating profit | $20.7M | $15.6M | $9.3M | -40.13% ↓ slower |
| Net profit | $17.0M | $14.7M | $5.4M | -63.16% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $57.5M | $92.4M | $82.7M | $97.5M | $99.2M |
| Operating profit | $14.5M | $24.9M | $20.7M | $15.6M | $9.3M |
| Net profit | $12.7M | $19.0M | $17.0M | $14.7M | $5.4M |
| Revenue CAGR | 4-yr avg 14.61% | ||||
Revenue rose 1.8% year over year (2023 ₩117.8 billion → 2024 ₩138.7 billion → 2025 ₩141.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 40.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.6%. The two-year revenue CAGR is 9.5%. In the most recent quarter (Q1 2026), revenue was 3.8% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue rose 1.8% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13FilingDecision to issue ₩50.0 billion of convertible bonds. Coupon and yield-to-maturity both 0%. Proceeds earmarked for mass production of lithium sulfide for solid-state batteries and facility investment in the semiconductor, solar, and catalyst segments.Secures funds for new businesses and expansion at a low cost of capital (a medium- to long-term growth foundation). The potential for a future rise in share count (dilution) is, however, a burden. Source
- 2026-05-21FilingDisclosure of the convertible-bond issuance results (issuance process completed).With funds confirmed, execution of lithium-sulfide mass production and facility investment can begin in earnest. Source
- 2026-03-31FilingDecision on new facility investment of about ₩19.6 billion (22.5% of equity) (amended filing).Strengthens the medium-term revenue base through capacity expansion. Recovery of the investment comes after operation and demand are confirmed. Source
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue ₩33.2 billion (+3.8%), operating profit ₩4.2 billion (+54%), net profit ₩6.4 billion (+281%), with profit recovering sharply from its trough.A signal of passing the margin trough. Whether new semiconductor customers are secured in the second half is key to sustaining the recovery. Source
- 2026-02-12IRIR presentation held. Shared the direction of the semiconductor and new businesses (such as lithium sulfide).Market communication of the growth strategy. Confirmation is needed through actual orders and mass-production results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 surge in net profit | net profit 64.5(+281% YoY), operating profit 42.5(+54% YoY) | (2026.03) | Confirmed | link |
| Size of the convertible-bond issuance | ₩50.0 billion | — | Confirmed | link |
| Estimated 2026 forward net profit | approx. ₩17.0 billion, forward PER approx. 52x | — | Unverified | link |
Recent filings Source
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Material-fact report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31Amended filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-02-25Shareholders' meeting notice
- 2026-02-12Disclosure
📖 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.