Asia300

LG Chem Ltd.

South Korea

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
May 23, 2017
Prev close: 289,500
May 23, 2017
Market cap:
Market cap(USD):
20,436.48B
18,180.30M
Shares: 70.59M

Currency in KRW

Company profile

Market(Ticker): KRX(051910)
Sector:
Industry:
Process Industries
Chemicals: Specialty
Full time employees: 14,974

Business summary

LG Chem Ltd. manufactures petrochemicals, IT & electronic materials and energy solution materials. It operates through through the following business segments: Petrochemicals, IT & Electronic Materials, Batteries. The Petrochemical division offers naphtha cracking centers and polyolefins, synthetic rubbers and specialty polymers, polyvinyl chloride, acrylonitrile-butadiene-styrene and engineering plastics, acrylates and plasticizers. The IT & Electronic Material division provides optical and display materials namely polarizers, phosphors, organic light emitting diode, photosensitive materials for liquid crystal display; printed circuit materials such as flexible materials, halogen free materials, integrated circuit packaging materials, epoxy resin system materials, high speed materials and build-up materials; toners such as color toners, black laser printer toners and black copier toners. The Battery division provides lithium-ion cylindrical batteries, lithium-ion polymer batteries, lithium-ion prismatic batteries, medium and large batteries. The company was founded on April 1, 2001 and is headquartered in Seoul, South Korea.

Company background

LG Chem is a leading chemical company in South Korea. Its origins can be traced back to Lucky Chemical Industrial, founded in 1947, of the LG group. LG Chem started as a producer of materials for cosmetics and has grown to become the pillar of the LG group, surpassing LG Electronics in terms of both market capitalization and earnings.

The LG group has shifted to a holding company system and LG Chem's biggest shareholder is LG Corp. While LG Chem is managed by a top executive who has risen within the company, key decisions such as changes in the top management and large acquisition deals are considered by LG Corp. Chairman Koo Bon-moo, owner and manager of the group.

LG Chem chalks up the majority of its sales from the petrochemical division, which has ethylene plants and produces products such as superabsorbent polymers used to make paper diapers and sanitary goods.

The lithium-ion battery business is also drawing attention as a locomotive of LG Chem's growth. The company supplies batteries for electric cars and hybrids to many automakers in the U.S., Europe and China, including Daimler of Germany and Great Wall Motor. It also engages in joint battery development. In addition, LG Chem handles electronic components such as polarizers for liquid crystal display panels.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 20,659.29B
Gross profit 3,937.73B
Operating income 1,991.92B
Income before tax 1,663.61B
Net income 1,281.12B
EBITDA 3,328.61B
Diluted EPS 17,422
Dividends per share 5,000
Total assets 20,487.06B
Total liabilities 6,436.09B
Total equity 13,937.35B
Operating cash flow 2,518.10B

Currency in KRW

Revenue 17,806.82M
Gross profit 3,394.04M
Operating income 1,716.89M
Income before tax 1,433.91M
Net income 1,104.23M
EBITDA 2,869.02M
Diluted EPS 15.01
Dividends per share 4.30
Total assets 16,962.29M
Total liabilities 5,328.77M
Total equity 11,539.45M
Operating cash flow 2,170.42M

Currency in USD

Valuation measures

Dec 2016

PER 14.98
ROA 6.55%
ROE 9.51%
Operating margin 9.64%
Profit margin 6.20%

Key executive

  • Vice Chairman & Chief Executive Officer: Jin-Soo Park
  • President, Chief Financial Officer & Director: Ho-Young Chung
  • Head-Technical Research: Jin-Nyeong Yoo
  • Managing Director, Head-Legal & Compliance Support: Gun Jang
  • President-Executive Board: Young-Ki Park

Share holders

  • LG Corp.(33.3%)
  • National Pension Service of Korea(8.1%)
  • The Vanguard Group, Inc.(1.4%)
  • BlackRock Fund Advisors(1.2%)
  • Norges Bank Investment Management(1.0%)
  • Schroder Investment Management Ltd.(0.9%)
  • APG Asset Management NV(0.5%)
  • Capital Research & Management Co. (World Investors)(0.5%)
  • LG Chem Ltd.(0.5%)
  • Samsung Asset Management Co., Ltd.(0.5%)

Address

  • Website: http://www.lgchem.com
  • Address: 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

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