Process Industries
LG Chem Ltd.
- 353,000.00 KRW
- -3,000.00
- -0.84%
South Korea
Jul 18, 2019Ticker
KRX(051910)Prev. close
356,000Market cap (KRW)
26,610.97BMarket cap (USD)
22,574.62MShares
78.28M
In the news
- Toray plans European factory for electric-car battery separators Jul 13, 2019
- South Korea and Japan spar over export controls at WTO Jul 10, 2019
- South Korea threatens retaliation over Japan export controls Jul 5, 2019
- India scrambles to look overseas for rare earths used in EVs Jun 27, 2019
- Chinese companies lead rise in Asian dollar-bond issuance May 24, 2019 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 2018 | KRW | USD |
| Revenue | 28,183.01B | 25,608.86M |
| Gross Profit | 5,144.42B | 4,674.54M |
| Operating income | 2,246.07B | 2,040.92M |
| Income before tax | 1,940.04B | 1,762.84M |
| Net income | 1,472.60B | 1,338.10M |
| EBITDA | 3,733.33B | 3,392.34M |
| Diluted EPS | 19,061.98 | 17.32 |
| Dividends Per Share | 6,000 | 5.45 |
| Total Assets | 28,944.13B | 25,940.25M |
| Total liabilities | 11,622.00B | 10,415.85M |
| Total equity | 17,083.04B | 15,310.13M |
| Operating cash flow | 2,124.96B | 1,930.88M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 22,577.83B | 20,206.58B | 20,659.29B | 25,698.01B | 28,183.01B |
| Gross Profit | 2,955.47B | 3,609.35B | 3,937.73B | 5,455.48B | 5,144.42B |
| Operating income | 1,310.76B | 1,823.56B | 1,991.92B | 2,928.45B | 2,246.07B |
| Income before tax | 1,159.86B | 1,549.64B | 1,659.82B | 2,563.89B | 1,940.04B |
| Net income | 867,924M | 1,152.98B | 1,281.12B | 1,945.28B | 1,472.60B |
| EBITDA | 2,461.21B | 3,079.65B | 3,328.61B | 4,334.08B | 3,733.33B |
| Diluted EPS | 11,803 | 15,679 | 17,422 | 25,391 | 19,061.98 |
| Dividends Per Share | 4,000 | 4,500 | 5,000 | 6,000 | 6,000 |
| Total Assets | 18,127.64B | 18,578.72B | 20,487.06B | 25,041.22B | 28,944.13B |
| Total liabilities | 5,861.79B | 5,475.20B | 6,436.09B | 8,702.64B | 11,622.00B |
| Total equity | 12,139.94B | 12,991.46B | 13,937.35B | 16,168.52B | 17,083.04B |
| Operating cash flow | 1,996.63B | 3,171.58B | 2,518.10B | 3,182.86B | 2,124.96B |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 21,448.39M | 17,853.43M | 17,806.82M | 22,731.34M | 25,608.86M |
| Gross Profit | 2,807.62M | 3,189.03M | 3,394.04M | 4,825.68M | 4,674.54M |
| Operating income | 1,245.19M | 1,611.20M | 1,716.89M | 2,590.38M | 2,040.92M |
| Income before tax | 1,101.83M | 1,369.18M | 1,430.65M | 2,267.90M | 1,762.84M |
| Net income | 824.50M | 1,018.71M | 1,104.23M | 1,720.70M | 1,338.10M |
| EBITDA | 2,338.09M | 2,721.01M | 2,869.02M | 3,833.73M | 3,392.34M |
| Diluted EPS | 11.21 | 13.85 | 15.01 | 22.45 | 17.32 |
| Dividends Per Share | 3.79 | 3.97 | 4.30 | 5.30 | 5.45 |
| Total Assets | 16,492.42M | 15,844.72M | 16,962.29M | 23,390.98M | 25,940.25M |
| Total liabilities | 5,333.02M | 4,669.48M | 5,328.77M | 8,129.13M | 10,415.85M |
| Total equity | 11,044.84M | 11,079.66M | 11,539.45M | 15,103.00M | 15,310.13M |
| Operating cash flow | 1,896.75M | 2,802.23M | 2,170.42M | 2,815.42M | 1,930.88M |
Valuation Measures
| Dec 2018 | |
| PER | 18.05 |
| ROA | 5.45% |
| ROE | 8.85% |
| Operating margin | 7.96% |
| Profit margin | 5.22% |
Key executives
- Vice Chairman & Chief Executive Officer: Hak Cheol Shin
- President, COO, Chief Financial Officer & Director: Ho-Young Chung
- CTO & President-Executive Board: Ki-Soo No
- Managing Director: Hyang-Mok Lee
- Managing Director: Sung-Hyun Kim
Shareholders
- LG Corp. (33.3%)
- National Pension Service of Korea (9.9%)
- LG Chem Ltd. (2.3%)
- The Vanguard Group, Inc. (1.7%)
- BlackRock Fund Advisors (1.6%)
- Fidelity Management & Research Co. (1.1%)
- Norges Bank Investment Management (1.0%)
- Schroder Investment Management Ltd. (0.8%)
- Samsung Asset Management Co., Ltd. (0.8%)
- Aberdeen Asset Managers 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
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.
- 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.
- LG Life Sciences, Ltd
- LG NanoH2O, Inc.
Competitors
- BASF SE
- DuPont de Nemours, Inc.
- Mitsubishi Chemical Holdings Corporation
- Dow, Inc.
- LyondellBasell Industries NV
- Saudi Basic Industries Corp.
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- Linde plc
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- Genexine, Inc.
- Aekyung Petrochemical Co., Ltd.
- AK Holdings, Inc.
- Formosa Chemicals & Fibre Corporation
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- Trinseo SA
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- Oil Refineries Ltd.
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- CHENG MEI MATERIALS TECHNOLOGY CORPORATION
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- CBAK Energy Technology, Inc.
- Shandong Ruifeng Chemical Co., Ltd. Class A
- USI Corporation
- Chokwang Paint Ltd.
- Paik Kwang Industrial Co., Ltd.
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Last Updated on 18 Jul, 2019