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Process Industries

LG Chem Ltd.

  • 364,500.00 KRW
  • -2,500.00
  • -0.68%
  • South Korea
    Sep 21, 2018
  • Ticker
    KRX(051910)
  • Prev. close
    367,000
  • Market cap (KRW)
    27,449.00B
  • Market cap (USD)
    24,612.40M
  • Shares
    78.28M

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 on April 1, 2001 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue25,698.01B22,731.34M
Gross Profit5,392.08B4,769.60M
Operating income2,928.45B2,590.38M
Income before tax2,563.89B2,267.90M
Net income1,945.28B1,720.70M
EBITDA4,334.08B3,833.73M
Diluted EPS25,39122.45
Dividends Per Share6,0005.30
Total Assets25,041.22B23,390.98M
Total liabilities8,702.64B8,129.13M
Total equity16,168.52B15,103.00M
Operating cash flow3,182.86B2,815.42M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 23,143.61B 22,577.83B 20,206.58B 20,659.29B 25,698.01B
Gross Profit 3,274.40B 2,955.47B 3,609.35B 3,937.73B 5,392.08B
Operating income 1,743.04B 1,310.76B 1,823.56B 1,991.92B 2,928.45B
Income before tax 1,601.29B 1,159.86B 1,549.64B 1,659.82B 2,563.89B
Net income 1,265.96B 867,924M 1,152.98B 1,281.12B 1,945.28B
EBITDA 2,788.46B 2,461.21B 3,079.65B 3,328.61B 4,334.08B
Diluted EPS 17,215.92 11,803 15,679 17,422 25,391
Dividends Per Share 4,000 4,000 4,500 5,000 6,000
Total Assets 17,446.46B 18,127.64B 18,578.72B 20,487.06B 25,041.22B
Total liabilities 5,720.80B 5,861.79B 5,475.20B 6,436.09B 8,702.64B
Total equity 11,596.94B 12,139.94B 12,991.46B 13,937.35B 16,168.52B
Operating cash flow 2,182.37B 1,996.63B 3,171.58B 2,518.10B 3,182.86B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 21,140.30M 21,448.39M 17,853.43M 17,806.82M 22,731.34M
Gross Profit 2,990.96M 2,807.62M 3,189.03M 3,394.04M 4,769.60M
Operating income 1,592.16M 1,245.19M 1,611.20M 1,716.89M 2,590.38M
Income before tax 1,462.68M 1,101.83M 1,369.18M 1,430.65M 2,267.90M
Net income 1,156.38M 824.50M 1,018.71M 1,104.23M 1,720.70M
EBITDA 2,547.09M 2,338.09M 2,721.01M 2,869.02M 3,833.73M
Diluted EPS 15.72 11.21 13.85 15.01 22.45
Dividends Per Share 3.65 3.79 3.97 4.30 5.30
Total Assets 16,531.44M 16,492.42M 15,844.72M 16,962.29M 23,390.98M
Total liabilities 5,420.76M 5,333.02M 4,669.48M 5,328.77M 8,129.13M
Total equity 10,988.72M 11,044.84M 11,079.66M 11,539.45M 15,103.00M
Operating cash flow 1,993.46M 1,896.75M 2,802.23M 2,170.42M 2,815.42M

Valuation Measures

Dec 2017
PER15.95
ROA8.54%
ROE12.92%
Operating margin11.39%
Profit margin7.56%

Key executives

  • Vice Chairman & Chief Executive Officer: Jin-Soo Park
  • President, Chief Financial Officer & Director: Ho-Young Chung
  • President-Executive & Chief Technology Officer: Jin-Nyeong Yoo
  • Managing Director, Head-Legal & Compliance Support: Gun Jang
  • Chief Happiness Officer & Senior Managing Director: Min-Hwan Kim

Shareholders

  • LG Corp. (33.3%)
  • National Pension Service of Korea (8.7%)
  • LG Chem Ltd. (2.3%)
  • Capital Research & Management Co. (World Investors) (2.1%)
  • Fidelity Management & Research Co. (1.7%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.4%)
  • Norges Bank Investment Management (1.0%)
  • Aberdeen Asset Managers Ltd. (0.6%)
  • Schroder Investment Management Ltd. (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

Related Companies

  • 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.
  • FARM HANNONG Co., 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 Chem Michigan, Inc.
  • Kolon Industries, Inc. /Super Absorbent Polymer Ops/
  • LG Chem America, Inc.
  • Uniseal, Inc.
  • Hyundai Petrochemical Corp.
  • LG Life Sciences, Ltd
  • LG NanoH2O, Inc.

Competitors

  • BASF SE
  • Eastman Chemical Company
  • Johnson Matthey Plc
  • Hansol Chemical Co., Ltd
  • OCI Co., Ltd
  • OMNOVA Solutions Inc.
  • Aekyung Petrochemical Co., Ltd.
  • Lion Chemtech Co., Ltd.
  • AK Holdings, Inc.
  • YUNGJIN PHARM. CO. LTD
  • CHENG MEI MATERIALS TECHNOLOGY CORPORATION
  • Electrovaya Inc.
  • U.I. Display Co., Ltd.
  • Versartis, Inc.
  • CBAK Energy Technology, Inc.
  • Shandong Ruifeng Chemical Co., Ltd. Class A
  • Trinseo SA
  • USI Corporation
  • Chokwang Paint Ltd.
  • Lotte Chemical Corp.
  • Tesla Inc
  • Benq Materials Corporation
  • Mexichem SAB de CV
  • Samyang Corporation
  • Coherus BioSciences, Inc.
  • KG Chemical Corporation
  • Mycenax Biotech Inc.
  • Paik Kwang Industrial Co., Ltd.
  • Samyang Holdings Corporation
  • Seowonintech Co., Ltd.
Last Updated on 21 Sep, 2018

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