LSLS

LS shares have fallen sharply over the past three months, while the filed figures show thin margins and heavy borrowing.

LS is a Korean holding company whose subsidiaries make electric cables, electrical equipment, machinery, copper and metals, and real estate. On trailing twelve-month figures to H1 2026 it reported revenue of ₩37.6T, operating income of ₩1.6T and net income of ₩428B, but free cash flow was negative at about -₩2.5T and borrowings stood at ₩4.9T. The share price closed at ₩209,500 on 2026-10-26, down 34.8% over one month and 31.3% over three months, though still near its 52-week range midpoint.

What stands out

• Trailing operating margin is 4.2% and net margin 1.1%, with revenue up 15.7% in 2025 but net income up only to ₩271B from ₩237B.
• Net income in 2023 (₩436B) and 2022 (₩452B) was higher than in 2025, so profit has not grown in a straight line.
• Liabilities are 269.7% of equity and borrowings are about ₩4.9T against cash of ₩2.4T.
• The company has filed several major sales or supply contracts and amended filings in September and October 2026, along with a response to a news report.
• A recent news report quotes chairman Ju Byung-gi on raising ownership in listed subsidiaries and grandchild companies to 50%, even though funding may be difficult.
• Foreign ownership fell from 18.1% to 17% over the last 60 days, while institutions were net sellers and retail investors net buyers over the last 20 days.

What to watch

• Whether the planned increase in ownership of listed subsidiaries is funded and how it affects debt levels, based on future filings.
• Next results and whether free cash flow turns positive given the trailing figure of about -₩2.5T.
• The discounted cash flow model in the data gives a base value of ₩316,927 and a bear value of 0, a wide range that the data does not explain further.