LS SecuritiesLS증권

LS Securities is a small, low-margin brokerage whose trailing profit is thin, with a high debt load and a recent share price slide.

On trailing figures to H1 2026, LS Securities reported about ₩5.4T in revenue but only ₩76B in operating income and ₩32B in net income, for margins of roughly 1.4% and 0.6%. Its liabilities are about 14.7 times equity and borrowings are about ₩4.2T, while the shares closed at ₩6,120 on 2026-10-23, down 6.3% over one month and up 15% over one year. Recent filings and headlines focus on bond and securities issuance, a lawsuit, and a fee cut on domestic futures and options.

What stands out

• Annual net income fell from ₩28.7B in 2023 to ₩16.6B in 2024, then rose to ₩23.0B in 2025, while revenue grew strongly in 2024 and 2025.
• The company screens cheap on the data provided: P/E about 10.5, P/B about 0.4, and a dividend yield of about 8.2%, though the fair value model's base case of ₩1,089 sits far below the current price.
• Peers in the data trade at lower P/E ratios (about 3.3 to 7.5) and higher P/B ratios (about 0.5 to 0.8), so LS Securities trades at a discount on book value.
• Foreign ownership rose from 2.1% to 2.5% over 60 days, while foreign and institutional investors were net sellers over the last 20 days and retail investors were net buyers.
• Headlines include a ₩20B investment in affiliate LS Electric's EB through a private equity fund and a fee cut on domestic futures and options through year-end.

What to watch

• Upcoming results and whether operating margin recovers from about 1.4% on a trailing basis.
• Outcome of the lawsuits listed in recent filings, which the data does not describe in detail.
• Progress of the securities issuance and the company's ability to manage its high borrowings and liabilities-to-equity ratio.