L&F: Operating profit returns on a trailing basis, but net losses and high leverage persist

Thesis

The data supports an improving operating picture. Trailing revenue of ₩2.9T is above the full-year 2025 figure of ₩2.2T, and the trailing operating margin of 8.4% compares with -7.3% in 2025 and -29.3% in 2024. The data does not show that this has reached the bottom line: trailing net income is -₩322.7B, ROE is -43.3% and free cash flow is -₩162.4B. The gap between operating profit and net loss suggests substantial non-operating costs, but the data does not break them down. The share price is ₩106,900, about 52.5% below the 52-week high of ₩225,000 and 69.7% above the low of ₩63,000, which shows large swings. Recent filings include two responses to rumour or news reports (Sep 8 and Oct 7), a major sales or supply contract disclosure (Sep 17) and several 5%+ holding reports, but the data gives no details of their content.

Business overview

L&F is listed on KOSPI in the Batteries sector and was founded on 2000-07-27. It listed on 2024-01-29 and has 36,316,174 listed shares. Market capitalisation is about ₩3.9T and enterprise value is ₩4.1T. The CEO is listed as 허제홍. Revenue has been volatile: ₩970.8B in 2021, ₩3.9T in 2022, ₩4.6T in 2023, ₩1.9T in 2024 and ₩2.2T in 2025. No segment, customer or product information is available in the data.

Financial analysis

Figures come from filed financial statements (DART). Trailing figures run to H1 2026. Revenue was ₩2.9T, operating income ₩242.7B (8.4% margin) and net income -₩322.7B (-11.1% margin). Annually, 2025 revenue grew 13.0% to ₩2.2T, with an operating loss of ₩156.8B and a net loss of ₩533.5B. 2024 had an operating loss of ₩558.7B and a net loss of ₩377.9B. 2022 was the last full profitable year, with operating income of ₩266.3B and net income of ₩270.0B. On the balance sheet, liabilities to equity are 372.7%, cash is ₩360.6B and borrowings are ₩601.5B. Free cash flow on a trailing basis is -₩162.4B. A filing on 2026-08-14 amended the annual report for December 2025; the data does not say what changed.

Valuation

Price to book is 5.0x, close to the 5.1x at the end of 2025. Price to sales is 1.3x and EV/EBITDA is 12.9x. P/E is not meaningful because of net losses, and the dividend yield is 0.0%. Among peers, price to book is 4.2x for LG Energy Solution, 1.9x for Samsung SDI, 3.3x for POSCO Future M and 6.3x for Ecopro BM, so L&F sits in the upper part of this group. Peer P/Es are either unavailable or very high (Samsung SDI 1,200.9x, POSCO Future M 307.7x, Ecopro BM 258.5x), reflecting weak earnings across the group. Ecopro Materials has no multiples in the data. Earlier multiples for L&F are mostly unavailable, so comparison with its own history is limited.

Catalysts

• The major sales or supply contract filing on 2026-09-17 may matter for revenue visibility, though the data does not give its size or terms.
• The H1 2026 results, filed on 2026-08-14, showed trailing operating profit, and further quarters will show whether it persists.
• Two responses to rumour or news reports (Sep 8 and Oct 7) show recent market attention, though the content is not in the data.
• Multiple 5%+ holding reports (Aug 5, Aug 26, Oct 2) and an insider shareholding report (Oct 6) point to changes in ownership that may be worth watching.
• An investor relations event on 2026-09-07 may have provided company commentary, but the data holds no details.

Risks

• Net income remains negative at -₩322.7B on a trailing basis, with ROE of -43.3%.
• Liabilities to equity of 372.7% and borrowings of ₩601.5B exceed cash of ₩360.6B, which leaves limited balance sheet cushion.
• Free cash flow is -₩162.4B, so operations and investment are not self-funding.
• Revenue has swung widely, from ₩4.6T in 2023 to ₩1.9T in 2024, which makes earnings hard to project.
• Investor flow, foreign ownership and short balance data are not available, and no news headlines were provided, so sentiment risk cannot be assessed.

Closing view

The data shows a clear improvement in operating results, with a positive 8.4% trailing operating margin after three years of losses. Against that, net losses, negative free cash flow and high leverage remain, and the 5.0x price to book already sits above most peers shown. The share price has been volatile, up 49.7% over a year but down 10.9% over a month. Missing data on flows, ownership and news limits the picture, so the evidence is mixed rather than conclusive.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationL&F: Operating profit returns on a trailing basis, but net losses and high leverage persist