LS Securities Co Ltd

LS Securities maintains a highly leveraged capital structure typical of financial intermediaries, with total liabilities of 9.51 trillion KRW against total assets of 10.39 trillion KRW. The debt-to-equity ratio stands at 5.38, driven by long-term debt of 4.72 trillion KRW. Liquidity is assessed as medium risk, with cash and equivalents of 138.1 billion KRW insufficient to cover total debt, resulting in negative net cash. The company trades at a price-to-book ratio of 0.39 and a price-to-earnings ratio of 8.32, indicating a discount to book value.

Profitability metrics reflect the capital-intensive nature of the business, with a return on equity of 4.64% and a return on assets of 0.39%. Operating income is 28.9 billion KRW on revenue of 1.97 trillion KRW, yielding a thin operating margin. Net income stands at 22.95 billion KRW. The gross profit of 1.92 trillion KRW suggests high pass-through revenue characteristics common in brokerage firms.

Net income surged 441.3% year-over-year to KRW 22.95 billion, demonstrating significant recent profitability acceleration.

Free cash flow expanded 1,740.2% to KRW 14.78 billion, indicating a substantial improvement in cash generation capabilities.

Revenue grew 14.8% year-over-year to KRW 1.97 trillion, reflecting strong top-line expansion in the latest fiscal period.

Operating income increased 442.1% year-over-year to KRW 28.91 billion, highlighting improved operational efficiency and margin expansion.

Gross profit reached KRW 1.92 trillion, maintaining a high gross margin structure relative to total revenue generation.

The debt-to-equity ratio stands at 5.38, significantly exceeding the cohort median of 0.39 and indicating high leverage risk.

Credit risk is flagged as high, suggesting potential vulnerabilities in the company's loan portfolio or counterparty exposures.

Operating margin of 1.47% falls in the bottom quartile of the cohort, signaling weak profitability relative to peers.

Liquidity risk is assessed as medium, pointing to potential challenges in meeting short-term financial obligations.

Revenue KRW 1.37T, +342,2% YoY; Operating income +133,8% YoY.

• ▍Revenue KRW 1.37T, +342,2% YoY
• ▍Operating income +133,8% YoY
• ▍Net income +142,5% YoY
• ▍Free cash flow +109,4% YoY
• ▍Net margin 2.2%

Revenue KRW 872.85B, +183,1% YoY; Operating income −61,6% YoY.

• ▍Revenue KRW 872.85B, +183,1% YoY
• ▍Operating income −61,6% YoY
• ▍Net income −39,8% YoY
• ▍Free cash flow −86,0% YoY
• ▍Net margin -1.6%

Revenue KRW 413.11B, +35,4% YoY; Operating income +70,0% YoY.

• ▍Revenue KRW 413.11B, +35,4% YoY
• ▍Operating income +70,0% YoY
• ▍Net income +643,1% YoY
• ▍Free cash flow +143,1% YoY
• ▍Net margin 0.7%

Revenue KRW 380.86B, +23,4% YoY; Operating income +63,8% YoY.

• ▍Revenue KRW 380.86B, +23,4% YoY
• ▍Operating income +63,8% YoY
• ▍Net income +109,3% YoY
• ▍Free cash flow +82,2% YoY
• ▍Net margin 5.7%

Revenue KRW 1.97T, +57,1% YoY; Operating income +32,6% YoY.

• ▍Revenue KRW 1.97T, +57,1% YoY
• ▍Operating income +32,6% YoY
• ▍Net income +38,1% YoY
• ▍Free cash flow +61,7% YoY
• ▍Net margin 1.2%