Asia300

LG Chem Ltd.

South Korea

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Feb 23, 2018
Prev close: 389,000
Feb 23, 2018
Market cap:
Market cap(USD):
29,125B
26,997.6M
Shares: 78.28M

Currency in KRW

Company profile

Market(Ticker): KRX(051910)
Sector:
Industry:
Process Industries
Chemicals: Specialty
Full time employees: --

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.

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.

In the news

Financial highlights

Dec 2017

  • Local currency
  • US Dollar
Revenue 25,698B
Gross profit --
Operating income 2,929B
Income before tax 2,564.27B
Net income 2,021.87B
EBITDA 4,335B
Diluted EPS --
Dividends per share 6,000
Total assets 25,041B
Total liabilities 8,703B
Total equity 16,339B
Operating cash flow 3,181B

Currency in KRW

Revenue 22,731.32M
Gross profit --
Operating income 2,590.86M
Income before tax 2,268.24M
Net income 1,788.45M
EBITDA 3,834.55M
Diluted EPS --
Dividends per share 5.30
Total assets 23,390.77M
Total liabilities 8,129.46M
Total equity 15,262.24M
Operating cash flow 2,813.77M

Currency in USD

Valuation measures

Dec 2017

PER 15.68
ROA 8.88%
ROE 13.35%
Operating margin 11.39%
Profit margin 7.86%

Key executive

  • Vice Chairman & Chief Executive Officer: Jin-Soo Park
  • President, Chief Financial Officer & Director: Ho-Young Chung
  • Head-Technical Research: Jin-Nyeong Yoo
  • Managing Director, Head-Legal & Compliance Support: Gun Jang
  • Managing Director: Hyang-Mok Lee

Share holders

  • LG Corp.(33.3%)
  • National Pension Service of Korea(9.7%)
  • Fidelity Management & Research Co.(1.6%)
  • The Vanguard Group, Inc.(1.5%)
  • BlackRock Fund Advisors(1.5%)
  • Norges Bank Investment Management(1.0%)
  • Schroder Investment Management Ltd.(0.6%)
  • Samsung Asset Management Co., Ltd.(0.6%)
  • Investec Asset Management Ltd.(0.6%)
  • JPMorgan Asset Management (UK) Ltd.(0.5%)

Address

  • Website: http://www.lgchem.com
  • Address: 128 Yeoui-daero, Yeongdeungpo-gu, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

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