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LK CHEM Co (489500) Fair Value & Analysis

Basic Materials · KR · Market cap 117B KRW

LC LK CHEM Co 489500 · KQ
Price20,600 KRW
Fair Value10,512 KRW
Upside-49.0%
Quality42/100
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Expensive Growth
Highly profitable · 23.0% net margin
Low debt · negative free cash flow
Ranks above peers (6/8)
Moderate moat 57/100
Evidence: Medium Range 7,718 KRW – 13,665 KRW Share as image

Fair value as of: Jul 22, 2026

From 14 valuation models · updated 19 days ago

Share price +3.0% over the past month.

Below-average quality, and screening another 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (13,665 KRW). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (17 months)

58,800 KRW 15,230 KRW Fair Value 10,512 KRW Feb 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

17‑month range 15,230 KRW – 58,800 KRW · fair‑value band 7,718 KRW – 13,665 KRW · the 20,600 KRW price screens above the 10,512 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

LK CHEM Co (489500) currently trades at 20,600 KRW, while our model-based Fair Value estimate is 10,512 KRW, implying the stock looks roughly 49.0% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, LK CHEM Co generated revenue of 22.9B KRW at a net margin of 23.0%. Revenue grew 79.6% year over year. It earns a return on equity of 9.0%. Net debt stands at 1.4B KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 7,718 KRW (bear case) to 13,665 KRW (bull case); at 20,600 KRW, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 65% below its 52-week high and 26% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -49%, 489500 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income 7,718 KRW 8,140 KRW 8,889 KRW 76
ROIC Compounder 7,547 KRW 8,460 KRW 9,259 KRW 72
Gordon GGM 430.52 KRW 476.99 KRW 542.79 KRW 70
All 14 models by family
Earnings-Based
Graham-Dodd 4,715 KRW 6,590 KRW 7,693 KRW 54
EPV 7,547 KRW 8,460 KRW 9,259 KRW 59
Dividend Discount
Gordon GGM 430.52 KRW 476.99 KRW 542.79 KRW 70
DDM Multi-Stage 430.52 KRW 554.44 KRW 718.59 KRW 61
Multiples
P/E Multiple 10,401 KRW 13,867 KRW 17,334 KRW 63
P/S Multiple 6,027 KRW 8,036 KRW 10,045 KRW 58
P/B Multiple 8,841 KRW 11,787 KRW 14,734 KRW 55
EV/EBIT 11,898 KRW 15,173 KRW 18,449 KRW 53
EV/EBITDA 12,022 KRW 15,339 KRW 18,656 KRW 54
EV/Revenue 7,695 KRW 10,106 KRW 12,516 KRW 43
Asset-Based
NCAV (Graham) 4,746 KRW 6,359 KRW 9,491 KRW 50
Economic Profit
Residual Income 7,718 KRW 8,140 KRW 8,889 KRW 76
ROIC Compounder 7,547 KRW 8,460 KRW 9,259 KRW 72
Growth Earnings
Growth-Adj P/E 7,358 KRW 10,512 KRW 13,665 KRW 68

Widest divergence: Multiples (11,787 KRW) versus Dividend Discount (476.99 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 22.9B KRW
Revenue growth (YoY) +79.6%
Net margin 23.0%
Return on equity 9.0%
Free cash flow −5.4B KRW FY2025
Operating margin 18.3%
More key figures
EPS growth (YoY) +171%
Net debt 1.4B KRW FY2022

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 46 · Market factors (momentum, volatility) 13

Profitability 43
Margins and returns on capital today
Quality Growth 0
Are margins and returns improving?
Cashflow 29
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

LK CHEM Co., Ltd., a technology-oriented company, engages in the silicon chemical material business in South Korea. It offers semiconductor chemicals, functional hair resins, and perovskite precursors; and chemical products, including acrylic acid, ethyl acrylate, butyl acrylate, 2-ethyl hexyl acrylate, methacrylic acid, methyl methacrylate, n-butyl …

Full company description

LK CHEM Co., Ltd., a technology-oriented company, engages in the silicon chemical material business in South Korea. It offers semiconductor chemicals, functional hair resins, and perovskite precursors; and chemical products, including acrylic acid, ethyl acrylate, butyl acrylate, 2-ethyl hexyl acrylate, methacrylic acid, methyl methacrylate, n-butyl methacrylate, i-butyl methacrylate, 2-hydroxyethyl methacrylate, pvc, plasticizer, isoprophyl alcohol, ascobic acid, and mono ethanol amine. The company was incorporated in 2007 and is headquartered in Cheonan-si, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

LK CHEM Co reported revenue of 20.2B KRW in FY2025 versus 13.7B KRW in FY2022, a compound +13.7%/yr. Reported net income was 4.4B KRW in FY2025, compounding +6.5%/yr from FY2022.

Growth Quality 51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
20.2B KRW
Latest YoY
−19.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.7%
Revenue +13.7%/yr
FY22 13.7B KRW
FY23 15.3B KRW
FY24 25.0B KRW
FY25 20.2B KRW
Net income +6.5%/yr
FY22 3.6B KRW
FY23 3.4B KRW
FY24 6.8B KRW
FY25 4.4B KRW

489500 screens 49% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "LK CHEM Co Fair Value". https://www.fairvalue-calculator.com/stock/489500

Peer Group

Specialty Chemicals · 673 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 42 · Bottom 25%
Fair Value upside −49% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 80% · Top 25%
Debt / equity 0.05× · Lower than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 19
PAST 36 · sector 23
HEALTH 97 · sector 95
DIVIDEND 0 · sector 25

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is LK CHEM Co (489500) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 10,512 KRW versus a price of 20,600 KRW, about −49% (overvalued).
What is the fair value of 489500?
Our model-based fair value for LK CHEM Co is 10,512 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 20,600 KRW.
What is the quality score of 489500?
LK CHEM Co has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LK CHEM Co (489500)?
LK CHEM Co reported trailing-twelve-month revenue of about 22.9B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 489500?
The net profit margin of LK CHEM Co is about 23.0%, meaning it keeps roughly 23.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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