Lotte Energy Materials Corp

Lotte Energy Materials Corp maintains a strong liquidity position, with a current ratio of 4.56 and cash and equivalents amounting to 485.2 billion KRW, indicating a robust ability to meet short-term obligations. The company's debt-to-equity ratio is 0.19, suggesting a conservative capital structure with limited leverage. Free cash flow stands at 11.2 billion KRW, supporting operational flexibility and potential reinvestment.

Profitability metrics show a return on equity (ROE) of 0.41% and a return on assets (ROA) of 0.23%, both below the typical thresholds for high-performing semiconductor firms. These figures suggest that the company is not generating strong returns relative to its equity and asset base. Gross profit of 21.9 billion KRW and operating income of 3.03 billion KRW indicate modest profitability, with net income at 5.38 billion KRW.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and supply chain disruptions. No material revenue concentration by geography is reported, but the absence of segmental or geographic breakdowns limits visibility into risk distribution.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. Capital expenditures are negative at -53.998 billion KRW, indicating asset sales or reductions in capital spending. Analysts have assigned a mean price target of 68,190.91 KRW, with a median of 65,000 KRW, suggesting a generally positive outlook.

Risk factors are currently low, with no immediate liquidity or dilution concerns identified. The company has not issued any recent equity, and no dilution sources are flagged in the risk assessment. However, the semiconductor industry is subject to cyclical demand and geopolitical supply chain risks, particularly in the context of global semiconductor shortages and trade tensions.

Recent filings and transcripts do not highlight any material events or strategic shifts. The company appears to be operating within a stable but low-growth environment, with no significant new product launches or market expansions disclosed.

Analysts project 49.1% upside to a mean price target of 68,191 KRW, reflecting strong buy consensus.

The company maintains a low debt-to-equity ratio of 0.19, indicating a conservative capital structure relative to peers.

Cash conversion metrics rank in the top quartile of the semiconductor cohort, suggesting efficient operational cash generation.

Dilution and liquidity risks are assessed as low, providing stability for existing shareholders and market operations.

Revenue reached 902 billion KRW in FY2025, demonstrating significant scale despite recent volatility in profitability metrics.

The company faces high credit risk, raising concerns about its ability to meet financial obligations amidst deteriorating performance.

Return on equity of 0.41% trails the semiconductor cohort median of 2.16%, indicating inefficient capital utilization.

Revenue KRW 159.85B, +1,2% YoY; Operating income +89,2% YoY.

• ▍Revenue KRW 159.85B, +1,2% YoY
• ▍Operating income +89,2% YoY
• ▍Net income +103,4% YoY
• ▍Free cash flow +125,7% YoY
• ▍Net margin 1.0%

Revenue KRW 170.90B, −8,3% YoY; Operating income +16,4% YoY.

• ▍Revenue KRW 170.90B, −8,3% YoY
• ▍Operating income +16,4% YoY
• ▍Net income −1 422,2% YoY
• ▍Free cash flow −211,0% YoY
• ▍Net margin -21.8%

Revenue KRW 143.71B, −32,0% YoY; Operating income −8,9% YoY.

• ▍Revenue KRW 143.71B, −32,0% YoY
• ▍Operating income −8,9% YoY
• ▍Net income −667,4% YoY
• ▍Free cash flow −37,0% YoY
• ▍Net margin -17.6%

Revenue KRW 204.95B, −22,0% YoY; Operating income −1 126,8% YoY.

• ▍Revenue KRW 204.95B, −22,0% YoY
• ▍Operating income −1 126,8% YoY
• ▍Net income −996,9% YoY
• ▍Free cash flow −400,8% YoY
• ▍Net margin -23.5%

Revenue KRW 157.97B; Operating income -KRW 46.02B.

• ▍Revenue KRW 157.97B
• ▍Operating income -KRW 46.02B
• ▍Net margin -29.6%

Revenue KRW 186.40B; Operating income -KRW 40.02B.

• ▍Revenue KRW 186.40B
• ▍Operating income -KRW 40.02B
• ▍Net margin -1.3%

Revenue KRW 211.45B; Operating income -KRW 31.74B.

• ▍Revenue KRW 211.45B
• ▍Operating income -KRW 31.74B
• ▍Net margin 2.1%

Revenue KRW 262.70B; Operating income KRW 3.03B.

• ▍Revenue KRW 262.70B
• ▍Operating income KRW 3.03B
• ▍Net margin 2.0%

Revenue KRW 677.53B, −24,9% YoY; Operating income −125,4% YoY.

• ▍Revenue KRW 677.53B, −24,9% YoY
• ▍Operating income −125,4% YoY
• ▍Net income −2 601,1% YoY
• ▍Free cash flow −2 844,2% YoY
• ▍Net margin -23.3%

Revenue KRW 902.25B, +11,5% YoY; Operating income −614,8% YoY.

• ▍Revenue KRW 902.25B, +11,5% YoY
• ▍Operating income −614,8% YoY
• ▍Net income +119,4% YoY
• ▍Free cash flow +97,6% YoY
• ▍Net margin 0.7%

Revenue KRW 809.01B, +10,9% YoY; Operating income −85,2% YoY.

• ▍Revenue KRW 809.01B, +10,9% YoY
• ▍Operating income −85,2% YoY
• ▍Net income −174,3% YoY
• ▍Free cash flow −1,6% YoY
• ▍Net margin -4.0%

Revenue KRW 729.36B, +5,9% YoY; Operating income +21,9% YoY.

• ▍Revenue KRW 729.36B, +5,9% YoY
• ▍Operating income +21,9% YoY
• ▍Net income −30,2% YoY
• ▍Free cash flow −78,6% YoY
• ▍Net margin 6.0%