LG Chem Ltd.

In the news

Tesla and Panasonic end joint solar cell production Feb 26, 2020
Panasonic in a jam as Tesla taps new battery supplies in China Feb 4, 2020
Asian stocks fall more amid growing fears over China epidemic Feb 3, 2020
LG Chem's operating profit dips 60% in 2019 on battery woes Feb 3, 2020
Chinese markets reopen, RCEP talks and India rate decision Feb 2, 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 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

KRW | USD

	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
Director, Chief Operating & Financial Officer: Ho-Young Jeong
CTO & President-Executive Board: Ki-Soo No
Managing Director: Hyang-Mok Lee

Shareholders

LG Corp. (33.3%)
National Pension Service of Korea (10.1%)
LG Chem Ltd. (2.3%)
The Vanguard Group, Inc. (1.8%)
Fidelity Management & Research Co. LLC (1.7%)
BlackRock Fund Advisors (1.5%)
Norges Bank Investment Management (1.1%)
Samsung Asset Management Co., Ltd. (1.0%)
Aberdeen Asset Managers Ltd. (0.8%)
Schroder Investment Management Ltd. (0.7%)

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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LG-Dow Polycarbonate Ltd.
Ningbo LG Yongxing Chemical Co. Ltd.
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LG Polymers India Pvt Ltd.
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Kolon Industries, Inc. /Super Absorbent Polymer Ops/
LG Chem America, Inc.
Uniseal, Inc.
Hyundai Petrochemical Corp.
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Competitors

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USI Corporation

Last Updated on 27 Mar, 2020