LS MaterialsLS머트리얼즈

LS Materials has a fresh ₩68.8B ultracapacitor supply deal, but profitability is thin and the stock is priced on expectations.

LS Materials makes ultracapacitor cells and modules alongside aluminum products and landscape materials. Trailing twelve-month revenue is about ₩173.4B with near-zero operating income of ₩0.3B, and free cash flow is negative at about -₩24.5B. The share price is ₩12,940, well below its 52-week high of ₩32,725 but up 22.2% over one year.

What stands out

• Filings and headlines on 13 October 2026 report a ₩68.8B ultracapacitor supply contract with a US company, linked to AI data center power systems.
• Trailing operating margin is 0.2% and net margin is 0.7%, so most of the business is not yet translating revenue into meaningful profit.
• Full-year 2025 operating income was negative at about -₩0.1B after strong 2023 and 2024 results, showing earnings have been volatile.
• Valuation is very high, with a trailing P/E of about 731 and P/B of 4.8, while the data gives no fair value estimate.
• Foreign ownership fell from 8.7% to 4% over 60 days, and foreign investors were net sellers of about ₩44.9B over the last 20 days.

What to watch

• The next quarterly or annual results, to see whether the new contract lifts margins and free cash flow.
• Revenue recognition and delivery timing for the ₩68.8B contract, as the filings do not give a schedule.
• Borrowings of about ₩67.1B against cash of about ₩49.6B, and whether further funding is needed given negative free cash flow.