Process Industries
LG Chem Ltd.
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- 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 See more articles on LG Chem Ltd.
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 2019 | KRW | USD |
| Revenue | 28,625.04B | 24,545.89M |
| Gross Profit | 4,577.93B | 3,925.56M |
| Operating income | 895,648M | 768.01M |
| Income before tax | 538,349M | 461.63M |
| Net income | 313,365M | 268.70M |
| EBITDA | 2,752.11B | 2,359.93M |
| Diluted EPS | 3,887.05 | 3.33 |
| Dividends Per Share | 2,000 | 1.71 |
| Total Assets | 34,024.42B | 29,421.44M |
| Total liabilities | 16,640.63B | 14,389.41M |
| Total equity | 17,004.97B | 14,704.46M |
| Operating cash flow | 3,121.10B | 2,676.33M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 20,206.58B | 20,659.29B | 25,698.01B | 28,183.01B | 28,625.04B |
| Gross Profit | 3,609.35B | 3,937.73B | 5,455.48B | 5,144.42B | 4,577.93B |
| Operating income | 1,823.56B | 1,991.92B | 2,928.45B | 2,246.07B | 895,648M |
| Income before tax | 1,549.64B | 1,659.82B | 2,563.89B | 1,940.04B | 538,349M |
| Net income | 1,152.98B | 1,281.12B | 1,945.28B | 1,472.60B | 313,365M |
| EBITDA | 3,079.65B | 3,328.61B | 4,334.08B | 3,733.33B | 2,752.11B |
| Diluted EPS | 15,679 | 17,422 | 25,391.08 | 19,061.98 | 3,887.05 |
| Dividends Per Share | 4,500 | 5,000 | 6,000 | 6,000 | 2,000 |
| Total Assets | 18,578.72B | 20,487.06B | 25,041.22B | 28,944.13B | 34,024.42B |
| Total liabilities | 5,475.20B | 6,436.09B | 8,702.64B | 11,622.00B | 16,640.63B |
| Total equity | 12,991.46B | 13,937.35B | 16,168.52B | 17,083.04B | 17,004.97B |
| Operating cash flow | 3,171.58B | 2,518.10B | 3,182.86B | 2,124.96B | 3,121.10B |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 17,853.43M | 17,806.82M | 22,731.34M | 25,608.86M | 24,545.89M |
| Gross Profit | 3,189.03M | 3,394.04M | 4,825.68M | 4,674.54M | 3,925.56M |
| Operating income | 1,611.20M | 1,716.89M | 2,590.38M | 2,040.92M | 768.01M |
| Income before tax | 1,369.18M | 1,430.65M | 2,267.90M | 1,762.84M | 461.63M |
| Net income | 1,018.71M | 1,104.23M | 1,720.70M | 1,338.10M | 268.70M |
| EBITDA | 2,721.01M | 2,869.02M | 3,833.73M | 3,392.34M | 2,359.93M |
| Diluted EPS | 13.85 | 15.01 | 22.45 | 17.32 | 3.33 |
| Dividends Per Share | 3.97 | 4.30 | 5.30 | 5.45 | 1.71 |
| Total Assets | 15,844.72M | 16,962.29M | 23,390.98M | 25,940.25M | 29,421.44M |
| Total liabilities | 4,669.48M | 5,328.77M | 8,129.13M | 10,415.85M | 14,389.41M |
| Total equity | 11,079.66M | 11,539.45M | 15,103.00M | 15,310.13M | 14,704.46M |
| Operating cash flow | 2,802.23M | 2,170.42M | 2,815.42M | 1,930.88M | 2,676.33M |
Valuation Measures
| Dec 2019 | |
| PER | 77.62 |
| ROA | 0.99% |
| ROE | 1.83% |
| Operating margin | 3.12% |
| Profit margin | 1.09% |
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 (10.5%)
- LG Chem Ltd. (2.3%)
- The Vanguard Group, Inc. (1.9%)
- Fidelity Management & Research Co. LLC (1.8%)
- BlackRock Fund Advisors (1.4%)
- Norges Bank Investment Management (1.1%)
- Platinum Investment Management Ltd. (0.7%)
- BlackRock Advisors LLC (0.5%)
- Aberdeen Asset Managers Ltd. (0.5%)
Contact Details
- Website:http://www.lgchem.com
- Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
- Phone: +82.2.3777.1114
Related Companies
- LG Chem Ltd. /LCD Polarizer Bus/
- LG Chem Wroclaw Energy Sp zoo
- LG Chem Ltd. /Photoresist Business/
- LG Chem Ltd. /Pesticide Bus/
- LG Chemical Tianjin Plant
- Daejung Em Co., Ltd. /Cathode Material Bus/
- LG Hausys Ltd. /Adhesive Film Div/
- Nanjing LG Chem New Energy Battery Co. Ltd.
- Ugimag Korea Co., Ltd.
- Tianjin LG BOTIAN Chemical Co. Ltd.
- LG Polycarbonate Ltd.
- LG Chem Display Materials (Beijing) Co. Ltd.
- Wuxi LG Chemical Co. Ltd.
- LG Chem Ltd. (Japan)
- LG Chemical (Guangzhou) Engineering Plastics Co. Ltd
- LG Chem (Tianjin) Engineering Plastics Co. Ltd.
- LG Chem HK Ltd.
- Tianjin LG Bohai Chemical Co. Ltd.
- LG Chem (Taiwan) Ltd.
- LG Chem Poland SP zoo
- LG-Dow Polycarbonate Ltd.
- Ningbo LG Yongxing Chemical Co. Ltd.
- LG Solar Energy, Inc.
- LG Chem Trading Shanghai Co. Ltd.
- LG Polymers India Pvt Ltd.
- LG Chem Michigan, Inc.
- Kolon Industries, Inc. /Super Absorbent Polymer Ops/
- LG Chem America, Inc.
- Uniseal, Inc.
- Hyundai Petrochemical Corp.
Competitors
- BASF SE
- Mitsubishi Chemical Holdings Corporation
- Saudi Basic Industries Corp.
- Dow, Inc.
- Asahi Kasei Corporation
- LyondellBasell Industries NV
- DuPont de Nemours, Inc.
- Linde plc
- Air Liquide SA
- Sumitomo Chemical Co., Ltd.
- AK Holdings, Inc.
- Formosa Chemicals & Fibre Corporation
- Eastman Chemical Company
- Lotte Chemical Corp.
- Trinseo SA
- Aekyung Petrochemical Co., Ltd.
- Hansol Chemical Co., Ltd
- Oil Refineries Ltd.
- Genexine, Inc.
- AbClon, Inc.
- OCI Co., Ltd
- Lotte Corp
- USI Corporation
- SHIN HEUNG ENERGY & ELECTRONICS Co., Ltd.
- Celxpert Energy Corporation
- Samyang Corporation
- Johnson Matthey Plc
- Bhansali Engineering Polymers Ltd.
- CHENG MEI MATERIALS TECHNOLOGY CORPORATION
- Ecopro BM Co., Ltd.
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Last Updated on 28 Oct, 2020
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