LX Holdings is not an operating company that makes and sells products itself; it is a holding company that owns stakes in subsidiaries such as LX International, LX Semicon and LX Hausys, and earns its money from the dividends and equity-method profits on those stakes, plus trademark royalties and real-estate rental income. In 2025 it posted a separate (non-consolidated) net profit of ₩135.6 billion and a dividend yield of 3.9%, but first-quarter 2026 net profit fell 46.7% year on year as weaker subsidiary earnings flowed through. What stands out most recently is that the combined market value of its listed subsidiary stakes alone exceeds the company's entire market capitalization, meaning the share price is set well below its asset value. That said, for the discount to narrow, it would need to be backed by a recovery in subsidiary earnings or stronger shareholder returns such as dividends or buybacks.
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 1.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 42.9% higher than a year earlier.
- ROE is 6.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 323.1%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder Koo Bon-joon 20.37% (individual)
Controlling bloc incl. related parties 43.82%
With the controlling bloc holding 44%, the ownership structure is stable.
Net asset value (NAV) assessment Fairly valued
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| LX Semicon | 33.08% |
| LX Hausys | 30.07% |
🔎 In-depth analysis
- LX Holdings is the holding company of the LX Group, which was spun off from the LG Group in 2021.
- It does not make products itself; its core business is to own stakes in subsidiaries and thereby control and manage them.
- It has three key subsidiaries: LX International (resource development, trading and logistics, roughly a 25.5% stake); LX Semicon, a chip company that designs display driver ICs (DDI) for smartphones and TVs (about 33.1%); and LX Hausys, which makes building materials such as windows and flooring (about 33.5%).
- The group also includes the chemical joint venture LX MMA and the logistics subsidiary Pantos.
- The company's own income comes from the dividends it receives from these subsidiaries, the equity-method profits it recognizes on their earnings, and royalties on the 'LX' trademark plus rental income from its real estate.
- In other words, the earnings and value of LX Holdings depend far more on how well its subsidiaries do than on its own standalone results.
- The share price is ₩7,480, and recent trading has been heavy.
- The 20-day moving average (the average price over the last 20 trading days) of ₩7,656, the 60-day line of ₩8,383 and the 120-day line of ₩8,418 are all above the current price.
- That means the stock is trading below its short- and medium-term averages, with the trend pointing down.
- It fell a gentle 4.7% over the past month, 6.5% over three months and 5.9% over six months.
- It sits about 26% below its 52-week high.
- The RSI (an indicator that expresses the recent strength of gains versus losses on a 0-100 scale) is 41.6, close to neutral.
- This is a zone that is neither overheated nor a clear bottom.
- The financial structure is stable.
- The debt ratio (borrowings relative to equity) is a low 17.9%, and shareholders' equity reaches ₩2 trillion.
- As a holding company, its interest coverage ratio (how many times operating profit can cover interest) is an ample 132x.
- That said, a holding company's metrics should not be read like an ordinary manufacturer's.
- On a separate-financial-statement basis its revenue is only ₩41.3 billion, which pushes the P/S ratio (price divided by revenue) up to a high 13.8x, but this is not because the company is failing to do business; a holding company's 'revenue' is essentially just trademark royalties and rent, so it is naturally small.
- ROE (how much it earns in a year on its equity) is a reasonable 6.8%, and the 3.9% dividend yield is above the market average.
- The P/E ratio (how many times a year's profit the share price represents) is 4.2x and the P/B ratio (the share price relative to book net assets) is 0.29x, which look very low on the numbers alone.
- Net debt (total borrowings less cash) is about ₩234.2 billion, and EV/EBIT (enterprise value divided by operating profit) is around 6.0x.
- One caveat: a holding company's book equity often carries subsidiary stakes at their historical acquisition cost, so it is stated below their true asset value.
- Because of this, it is hard to conclude the stock is cheap or expensive from P/E and P/B alone; the net asset value (NAV) approach explained below is more accurate.
- A holding company's profit swings from year to year because it pulls in subsidiary earnings via the equity method.
- On a separate basis, net profit jumped from ₩78.8 billion in 2023 to ₩160.3 billion in 2024, then fell 15% to ₩135.6 billion in 2025.
- This variability comes from the ups and downs of subsidiary earnings.
- First-quarter 2026 net profit was ₩37.6 billion, down 46.7% year on year.
- This was largely driven by a notable drop in profit at the semiconductor subsidiary LX Semicon and a swing to a loss at the building-materials subsidiary LX Hausys.
- On the other hand, LX International, which handles resources and logistics, is showing signs of recovery, so the direction differs by subsidiary.
- Because a holding company's net profit swings sharply with subsidiary earnings, mixing in non-cash items, it is hard to forecast a full year simply by multiplying one quarter by four.
- The company has not disclosed any official revenue or profit target for this year, so the honest approach to the year's earnings outlook is not to pin it to a specific figure but to watch whether the subsidiaries' results recover.
- First-half 2026 disclosures were centered on typical holding-company matters.
- On May 14 it reported preliminary first-quarter consolidated results under fair disclosure, with net profit down sharply year on year.
- This was a direct reflection of slowing subsidiary earnings.
- In April and May, several disclosures announced decisions to guarantee subsidiary debt, supporting the subsidiaries' funding.
- This is a routine procedure by which a holding company shores up subsidiary credit, but it is a point to watch alongside the subsidiaries' cash positions.
- On June 1 it disclosed its corporate governance report, updating information on governance transparency.
- Separately, the company has stated a plan to keep increasing its stake in the core subsidiary LX International to strengthen control, so expanding that stake is a point to watch going forward.
- LX Holdings is a classic holding company whose share price is set below its asset value.
- Its strengths are clear.
- The combined market value of its listed subsidiary stakes (LX International, LX Semicon and LX Hausys) alone exceeds the company's entire market capitalization.
- Add the unlisted logistics subsidiary Pantos, the chemical joint venture LX MMA, and its trademarks and real estate, and the true asset value exceeds the market cap by an even wider margin.
- The low debt ratio and a high 3.9% dividend yield also make it stable.
- On the other hand, the cautions are just as clear.
- This kind of 'holding-company discount' can persist for a long time, and narrowing it requires a catalyst.
- Subsidiary earnings need to recover, shareholder returns such as dividends or buybacks need to strengthen, or the value of the subsidiary stakes needs to be re-valued.
- Right now, with the semiconductor and building-materials subsidiaries' profits declining, short-term earnings momentum is weak.
- In sum, there is appeal for a patient perspective focused on asset value and dividends, but patience is required for anyone expecting an immediate earnings rebound or a swift re-valuation of the share price.
🔎 Valuation vs peers Undervalued
Compared against holding companies (where the value of subsidiary stakes is the core of enterprise value) alongside its main listed subsidiaries; given the nature of a holding company, net asset value (NAV) is more accurate than a consolidated P/E.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LX International | 10.15x | 0.52x | 5.12% |
| LX Semicon | 7.42x | 0.54x | 7.34% |
| Lotte Corporation | — | 0.38x | -10.66% |
On a P/E of 4.2x and a P/B of 0.29x alone the stock looks very cheap, but for a holding company it is hard to conclude cheap or expensive from these multiples, for two reasons. First, trailing profit mixes in items such as equity-method earnings that vary widely year to year, so any single year's P/E does not represent true earning power. Second, book equity carries the subsidiary stakes at their historical acquisition cost, which makes the P/B look higher than it should (that is, it understates the asset value). For that reason, a holding company is best viewed through net asset value (NAV), which sums the market value of the stakes it holds. On a NAV basis, the market value of the three listed subsidiary stakes alone exceeds LX Holdings' market capitalization, and adding the unlisted Pantos, the chemical joint venture, the trademarks and the real estate leaves a large discount of the share price to asset value. Even compared with the listed subsidiaries (LX International at 0.52x P/B, LX Semicon at 0.54x P/B) or a holding-company peer (Lotte Corporation at 0.38x P/B), LX Holdings' 0.29x P/B is a low position. That said, this holding-company discount can persist for a long time without a catalyst such as a subsidiary earnings recovery or stronger shareholder returns, so it is judged undervalued from an asset-value perspective.
Price history Close · MA20 · MA60
The latest close is ₩7,480 and the market capitalization is ₩570.6 billion. The price sits below its 20-day moving average (₩7,656) and below its 60-day moving average (₩8,383). 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 41.6, a neutral level. The one-month change is -4.7%, the three-month change is -6.5%, and the position relative to the 52-week high is -25.8%. Relative strength versus the KOSPI is 20 (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 19% of all stocks. Over the past three months it lagged the index by 26.2%. 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 -26.18% / 6M -42.40% / 12M -67.31%
Key metrics vs sector median
Valuation
The P/E of 4.21x is below the sector median (6.67x). The P/B of 0.29x is below the sector median (0.49x). 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.
Profitability & financials
Return on equity (ROE) is 6.8%, above the sector average (5.0%). The operating margin is 323.1%. The debt ratio is 17.9%, 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 | $25.1M | $27.0M | $27.4M | +1.52% ↓ slower |
| Operating profit | $48.5M | $103.4M | $88.4M | -14.50% ↓ slower |
| Net profit | $52.3M | $106.2M | $89.9M | -15.40% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $123.2M | $157.0M | $25.1M | $27.0M | $27.4M |
| Operating profit | $97.5M | $105.3M | $48.5M | $103.4M | $88.4M |
| Net profit | $94.7M | $112.8M | $52.3M | $106.2M | $89.9M |
| Revenue CAGR | 4-yr avg -31.34% | ||||
Revenue rose 1.5% year over year (2023 ₩37.9 billion → 2024 ₩40.7 billion → 2025 ₩41.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 14.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -31.3%. The two-year revenue CAGR is 4.4%. In the most recent quarter (Q1 2026), revenue was 42.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.9%, is on the high side.
Points to watch
- Revenue rose 1.5% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-14EarningsPreliminary consolidated first-quarter 2026 results under fair disclosure; net profit fell 46.7% year on year as slowing subsidiary earnings flowed through.Short term: declining profit at the semiconductor and building-materials subsidiaries fed directly into the holding company's net profit, confirming the high volatility of equity-method earnings typical of a holding company. Source
- 2026-06-01FilingDisclosure of the corporate governance report; regular update of information on governance transparency.Medium term: a reference document for assessing the holding company's governance and shareholder-return policy. Source
- 2026-05-22FilingDecision to guarantee a subsidiary's third-party debt (a key management matter of the subsidiary); the holding company backs the subsidiary's funding with its own credit.Short to medium term: reflects the subsidiary's funding needs. This is routine support using holding-company credit, but the subsidiary's financial position is a point to check alongside it. Source
- 2026-05-15FilingFiling of the first-quarter 2026 report; disclosure of separate and consolidated financial statements and the status of subsidiary stakes.Medium term: a primary source for confirming subsidiary shareholding ratios and net asset value. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14EarningsFair-disclosure notice
- 2026-05-11EarningsEarnings disclosure
- 2026-04-30Disclosure
- 2026-04-29Disclosure
- 2026-04-29Disclosure
- 2026-04-29Disclosure
- 2026-04-29Disclosure
📖 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.