LK Chem (489500) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
LK Chem is a small- to mid-cap company with a market cap of about ₩132.6 billion that makes and sells chemical materials, and because its revenue and profit move relatively sharply with a single large supply contract or a quarter's results, it is easier to understand by watching how far its recent contract and quarterly results feed through to actual revenue. In May 2026 it signed a single sales and supply contract worth ₩21.2 billion (105.1% of last year's revenue), and it confirmed an earnings improvement with 2025 annual results (revenue ₩20.2 billion, operating profit ₩4.6 billion, net profit ₩4.4 billion) and Q1 2026 results (revenue ₩6.1 billion, operating profit ₩1.1 billion, net profit ₩1.3 billion) in May. The point worth watching lately is that a thick 22.7% operating margin, a new contract exceeding last year's revenue, and a P/E of about 10x on this year's expected profit are strengths; against that, as a small- to mid-cap the outcome hinges heavily on a single contract or a quarter's results, and part of the Q1 growth rate carries a base effect, so it needs checking whether the profit improvement continues in the remaining quarters.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 19.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 79.6% higher than a year earlier.
- ROE is 8.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 22.7%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Chang-yeop 56.63% (individual)
Controlling bloc incl. related parties 57.11%
With the controlling bloc holding 57%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
LK Chem is a company that makes and sells chemical materials. As a small- to mid-cap with a market cap of about ₩132.6 billion, its revenue and profit move relatively sharply with a single large supply contract or a quarter's results. So alongside the big picture of the business itself, watching how far its recent contract and quarterly results feed through to actual revenue makes the company easier to understand.
The latest close is ₩19,420 and the market capitalization is ₩124.1 billion. The price sits above its 20-day moving average (₩18,584) and below its 60-day moving average (₩24,987). 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 48.0, a neutral level. The one-month change is -1.6%, the three-month change is -46.1%, and the position relative to the 52-week high is -62.1%. Relative strength versus the KOSDAQ is 55 (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 56% of all stocks. Over the past three months it lagged the index by 13.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a 2025 annual basis, revenue is ₩20.2 billion, operating profit ₩4.6 billion and net profit ₩4.4 billion. The operating margin of 22.7% is a thick margin for a chemicals company, and the ROE (how much the company earns on its equity in a year) of 7.3% is above the sector average. Financially, a debt ratio of 11.0%, a current ratio of 1,194% and interest coverage of 10.6x make it solid on short-term funding and debt burden. The P/E (how many times a year's earnings the share price is) is 28.51x on last year's confirmed earnings and the P/B (how many times book value the share price is) is 2.03x, which can look high on the numbers alone. However, this company is at an inflection where profit jumps sharply this year, so the P/E on this year's expected profit shows the company's real value better than the P/E computed on last year's results. The P/E on this year's expected profit comes down to about 9.95x, with an expected P/B of 2.01x, and given that peers' P/E is generally in the 6-12x range, it is hard to call this an expensive spot.
Over several years, revenue went ₩15.3 billion in 2023 to ₩25.0 billion in 2024 to ₩20.2 billion in 2025, rising sharply in 2024 before catching its breath in 2025. Profit followed similarly, peaking in 2024 and then declining in 2025. But in the latest quarter, Q1 2026, the flow clearly turned. Revenue of ₩6.1 billion (+79.6% versus the same period a year earlier), operating profit of ₩1.1 billion (+130.7%) and net profit of ₩1.3 billion (+207.4%) all jumped sharply together. Not only did volume grow; profit grew faster, reading as a sign of better unit pricing or product mix. Add the ₩21.2 billion supply contract signed in May 2026 (larger than all of last year's revenue), and visibility to underpin this year's revenue emerged too. This year's estimates reflecting these Q1 results and the new contract come to about ₩36.2 billion in revenue, ₩10.5 billion in operating profit and ₩13.3 billion in net profit, a step up from last year. That said, the steep Q1 growth rate partly includes a base effect from a low year-earlier quarter, so whether this pace continues in the remaining quarters is something to verify through quarterly results.
On May 14, 2026 it signed a single sales and supply contract (contract value ₩21.2 billion, 105.1% of last year's full-year revenue). Being larger than last year's revenue, it raises this year's revenue visibility, but the contract term and whether this transaction is a one-off or recurring are the key to the medium-term reading. On February 9, 2026 it confirmed annual results (revenue ₩20.2 billion, operating profit ₩4.6 billion, net profit ₩4.4 billion), and on May 15 its quarterly report disclosed Q1 2026 results (revenue ₩6.1 billion, operating profit ₩1.1 billion, net profit ₩1.3 billion), confirming the profit improvement. It helps to check whether the flow of disclosures points in the same direction as the annual trend and whether any one-off factors are mixed in.
The strengths are clear. With a 22.7% operating margin, the margin is thick and the financials are solid; in Q1 revenue and profit jumped sharply together, a signal of a profit inflection, and a new supply contract exceeding last year's revenue underpins this year's results. The P/E of 30x computed on last year's profit looks high, but a P/E of about 10x on this year's expected profit is in line with chemicals peers, so if results come through as planned the price is not an expensive spot. That the shares have fallen nearly 60% from their high, diverging from results and price, is also worth noting. On the cautionary side, as a small- to mid-cap the outcome hinges heavily on a single contract or a quarter's results, and the Q1 growth rate partly carries a base effect. In short, if the profit improvement confirmed in Q1 continues in the remaining quarters and the new contract is well recognized as actual revenue, this year's expected profit gains support; conversely, if the contract proves one-off or quarterly results turn down again, that premise weakens.
🔎 Valuation vs peers Overvalued
Chemicals-sector names close in market cap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hankook Cosmetics Manufacturing | 7.09x | 1.75x | 26.69% |
| Clio | 14.88x | 0.82x | 7.15% |
| Kyung Nong | 9.63x | 0.65x | 6.10% |
We looked first at public-data comparables close in market cap within chemicals. The current P/E (how many times a year's earnings the share price is) is 28.51x and the P/B (how many times book value the share price is) is 2.03x. That said, for lower-market-cap names, earnings swings and funding disclosures carry a large effect, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The forecast box is based on DART seasonality approximations.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩36.2 billion | ₩10.5 billion | ₩13.3 billion |
| Next quarter | Q2 2026 | ₩10.3 billion | ₩4.0 billion | ₩3.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩19,420 and the market capitalization is ₩124.1 billion. The price sits above its 20-day moving average (₩18,584) and below its 60-day moving average (₩24,987). 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 48.0, a neutral level. The one-month change is -1.6%, the three-month change is -46.1%, and the position relative to the 52-week high is -62.1%. Relative strength versus the KOSDAQ is 55 (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 56% of all stocks. Over the past three months it lagged the index by 13.2%. 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 -13.16% / 6M -6.64% / 12M +3.17%
Key metrics Computed vs sector median
Valuation
The P/E of 28.51x is above the sector median (14.15x). The P/B of 2.03x 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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.6%, above the sector average (4.0%). The operating margin is 22.7%. The debt ratio is 10.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $10.7M | $17.6M | $14.2M | -19.42% ↓ slower |
| Operating profit | $3.9M | $7.1M | $3.2M | -54.91% ↓ slower |
| Net profit | $2.4M | $4.8M | $3.1M | -36.45% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $10.7M | $17.6M | $14.2M |
| Operating profit | — | — | $3.9M | $7.1M | $3.2M |
| Net profit | — | — | $2.4M | $4.8M | $3.1M |
| Revenue CAGR | 2-yr avg 15.01% | ||||
Revenue fell 19.4% year over year (2023 ₩15.3 billion → 2024 ₩25.0 billion → 2025 ₩20.2 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 54.9% year over year. The decline widened. Over the 3 years on record, revenue compound annual growth (CAGR) is 15.0%. The two-year revenue CAGR is 15.0%. In the most recent quarter (Q1 2026), revenue was 79.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 19.4% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-14ContractSingle sales and supply contract signed: contract value ₩21.2 billion, 105.1% of recent revenueThe contract value and term are central to future revenue recognition. Whether it is one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-02-09EarningsChange in revenue or profit/loss structure of 30% or more (15% for large corporations): annual revenue ₩20.2 billion, operating profit ₩4.6 billion, net profit ₩4.4 billionThis is recent confirmed or preliminary earnings data. Check whether it points in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-05-15EarningsQuarterly report (2026.03): Q1 2026 revenue ₩6.1 billion, operating profit ₩1.1 billion, net profit ₩1.3 billionThis is recent confirmed or preliminary earnings data. Check whether it points in the same direction as the annual trend and whether any one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩19,420 | ₩19,420 | Confirmed | link |
| Latest quarterly results | revenue ₩6.1 billion, operating profit ₩1.1 billion | revenue ₩6.1 billion, operating profit ₩1.1 billion | Confirmed | link |
| Annual results | revenue ₩20.2 billion, operating profit ₩4.6 billion | revenue ₩20.2 billion, operating profit ₩4.6 billion | Confirmed | link |
| Contract disclosure source text | single supply contract signed: contract value ₩21.2 billion · vs recent revenue 105.1% | single supply contract signed: contract value ₩21.2 billion · vs recent revenue 105.1% | Confirmed | link |
| Earnings disclosure source text | revenue30%: revenue ₩20.2 billion · operating profit ₩4.6 billion · net profit ₩4.4 billion | revenue30%: revenue ₩20.2 billion · operating profit ₩4.6 billion · net profit ₩4.4 billion | Confirmed | link |
| Earnings disclosure source text | (2026.03): 2026 1 revenue ₩6.1 billion · operating profit ₩1.1 billion · net profit ₩1.3 billion | (2026.03): 2026 1 revenue ₩6.1 billion · operating profit ₩1.1 billion · net profit ₩1.3 billion | Confirmed | link |
| Forecast box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Single supply/sales contract
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-21Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit 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.