LG Chem Ltd.

In the news

Japan's battery startups take the world beyond lithium ion Aug 3, 2020
Panasonic to supply Tesla Model 3 batteries that hold more juice Aug 1, 2020
China gives CATL, BYD and a fuel-cell startup a second wind Jul 25, 2020
Fueled by Tesla deal, LG Chem goes full throttle on EV batteries Jul 21, 2020
In Depth: CATL loses EV battery crown as foreign players muscle in Jul 12, 2020

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.

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 in January 1947 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2020	KRW	USD
Revenue	30,076.51B	25,490.99M
Gross Profit	5,985.52B	5,072.96M
Operating income	1,798.15B	1,524.00M
Income before tax	934,349M	791.89M
Net income	406,079M	344.16M
EBITDA	4,070.88B	3,450.23M
Diluted EPS	6,670.61	5.65
Dividends Per Share	10,000	8.47
Total Assets	41,388.89B	38,100.79M
Total liabilities	22,598.45B	20,803.14M
Total equity	18,039.12B	16,606.02M
Operating cash flow	5,841.56B	4,950.94M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	20,659.29B	25,698.01B	28,183.01B	27,353.07B	30,076.51B
Gross Profit	3,937.73B	5,455.48B	5,144.42B	4,425.92B	5,985.52B
Operating income	1,991.92B	2,928.45B	2,246.07B	825,415M	1,798.15B
Income before tax	1,659.82B	2,563.89B	1,940.04B	552,232M	934,349M
Net income	1,281.12B	1,945.28B	1,472.60B	342,523M	406,079M
EBITDA	3,328.61B	4,334.08B	3,733.33B	2,620.33B	4,070.88B
Diluted EPS	17,422	25,391.08	19,061.98	4,022.80	6,670.61
Dividends Per Share	5,000	6,000	6,000	2,000	10,000
Total Assets	20,487.06B	25,041.22B	28,944.13B	34,024.42B	41,388.89B
Total liabilities	6,436.09B	8,702.64B	11,622.00B	16,640.63B	22,598.45B
Total equity	13,937.35B	16,168.52B	17,083.04B	17,004.97B	18,039.12B
Operating cash flow	2,518.10B	3,182.86B	2,124.96B	3,121.10B	5,841.56B

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	17,806.82M	22,731.34M	25,608.86M	23,455.19M	25,490.99M
Gross Profit	3,394.04M	4,825.68M	4,674.54M	3,795.22M	5,072.96M
Operating income	1,716.89M	2,590.38M	2,040.92M	707.79M	1,524.00M
Income before tax	1,430.65M	2,267.90M	1,762.84M	473.53M	791.89M
Net income	1,104.23M	1,720.70M	1,338.10M	293.71M	344.16M
EBITDA	2,869.02M	3,833.73M	3,392.34M	2,246.92M	3,450.23M
Diluted EPS	15.01	22.45	17.32	3.44	5.65
Dividends Per Share	4.30	5.30	5.45	1.71	8.47
Total Assets	16,962.29M	23,390.98M	25,940.25M	29,421.44M	38,100.79M
Total liabilities	5,328.77M	8,129.13M	10,415.85M	14,389.41M	20,803.14M
Total equity	11,539.45M	15,103.00M	15,310.13M	14,704.46M	16,606.02M
Operating cash flow	2,170.42M	2,815.42M	1,930.88M	2,676.33M	4,950.94M

Valuation Measures

Dec 2020
PER	123.52
ROA	1.07%
ROE	2.31%
Operating margin	5.97%
Profit margin	1.35%

Key executives

Vice Chairman & Chief Executive Officer: Hak Cheol Shin
President: Okdong Son
Chief Financial Officer & Director: Dong-Seok Cha
CTO & President-Executive Board: Ki-Soo No
Managing Director: Hyang-Mok Lee

Shareholders

LG Corp. (33.3%)
National Pension Service of Korea (6.8%)
The Vanguard Group, Inc. (1.6%)
BlackRock Fund Advisors (1.4%)
Samsung Asset Management Co., Ltd. (1.0%)
Norges Bank Investment Management (1.0%)
Mirae Asset Global Investments Co., Ltd. (0.9%)
Schroder Investment Management (Hong Kong) Ltd. (0.9%)
Invesco Advisers, Inc. (0.8%)
Veritas Asset Management LLP (0.6%)

Contact Details

Website:http://www.lgchem.com
Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
Phone: +82.2.3777.1114

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Competitors

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Last Updated on 21 Jan, 2022