PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩90 per share · Prices as of the 2026-10-02 close
Lee Ku Industrial, a maker of copper, brass, and phosphor bronze rolled products, posted sharply higher revenue and operating profit in the first half of 2026, but quarterly net income has swung widely on raw-material prices and non-operating factors.
FY2025 consolidated revenue rose to KRW 507.8 billion, but operating profit slipped to KRW 24.4 billion, lowering the operating margin from 5.3% to 4.8%.
1Q26 revenue jumped to KRW 151.6 billion with operating profit of KRW 21.3 billion, and 2Q26 revenue grew further to KRW 190.8 billion, yet net income to owners declined versus 1Q.
In 3Q25, operating profit was positive at about KRW 3.2 billion, yet net income attributable to owners was negative at roughly -KRW 0.6 billion, pointing to a significant non-operating drag.
With annual capacity of 60,000 tons, the company supplies more than 20% of domestic demand, and demand for copper materials used in EV battery busbars and lead tabs is increasing.
The debt ratio rose from 141.2% in FY2024 to 158.8% in FY2025, and annual operating cash flow reversed from +KRW 4.8 billion in FY2024 to -KRW 4.8 billion in FY2025.
Lee Ku Industrial was established to manufacture industrial copper sheets and listed on the KOSPI in 1995, and with annual capacity of 60,000 tons it supplies more than 20% of domestic demand.
Its core products are copper, brass, and phosphor bronze rolled materials, supplied to automotive parts, semiconductor leadframes, electric/electronic products, construction materials, and apparel accessories.
Based on the 1Q26 disclosure, revenue mix by item was copper at 50.17%, brass at 39.09%, and phosphor bronze at 7.58%, with product sales accounting for 96.84% of the total and processing/other sales making up the rest.
Demand for copper products used in EV battery busbars and lead tabs is rising in particular, and the company supplies tier-1 and tier-2 vendors of major domestic EV battery makers.
Through facility expansion and continued investment in EV component materials, the company is focusing on developing and expanding sales of new products such as busbars, motors, heat sinks, and connectors.
The domestic copper-rolling market has an oligopolistic structure centered on a small number of large players, and given the industry's direct exposure to global raw-material price swings and downstream demand, intensifying competition continues to constrain profitability.
Because its products span connectors, battery terminals, and LED terminals across a wide range of applications, a downturn in any single end market tends to have a relatively diversified impact on overall results.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩126B | ₩4.4B | 3.5% |
| 2025Q3 | ₩131.3B | ₩3.2B | 2.4% |
| 2025Q4 | ₩121.6B | ₩9.2B | 7.6% |
| 2026Q1 | ₩151.6B | ₩21.3B | 14.0% |
| 2026Q2 | ₩190.8B | ₩20.3B | 10.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩429.6B | ₩13.7B | ₩5.7B | 3.2% | 4.5% | 165.1% |
| 2023 | ₩433.4B | ₩10.2B | ₩700M | 2.4% | 0.5% | 149.3% |
| 2024 | ₩472.3B | ₩25.2B | ₩12.6B | 5.3% | 9.2% | 141.2% |
| 2025 | ₩507.8B | ₩24.4B | ₩10.9B | 4.8% | 7.5% | 158.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual results show revenue of KRW 429.6 billion and operating profit of KRW 13.7 billion (3.2% margin) in FY2022, moving to revenue of KRW 433.4 billion and operating profit of KRW 10.2 billion (2.4% margin) in FY2023 — revenue grew but margin actually narrowed, and net income collapsed to about KRW 0.7 billion.
FY2024 saw a marked margin recovery, with revenue of KRW 472.3 billion and operating profit of KRW 25.2 billion (5.3% margin), and net income recovering to KRW 12.6 billion, but in FY2025 revenue rose further to KRW 507.8 billion while operating profit edged down to KRW 24.4 billion (4.8% margin) and net income fell to KRW 10.9 billion.
On a quarterly basis, revenue of KRW 126.0 billion, operating profit of KRW 4.4 billion, and net income of KRW 5.6 billion in 2Q25 gave way to 3Q25 revenue of KRW 131.3 billion but operating profit fell to KRW 3.2 billion and net income turned negative at about -KRW 0.6 billion — a case where positive operating profit still produced a net loss due to non-operating factors. 4Q25 saw margins recover, with revenue of KRW 121.6 billion, operating profit of KRW 9.2 billion, and net income of KRW 1.7 billion.
Entering 2026, 1Q26 revenue jumped to KRW 151.6 billion with operating profit of KRW 21.3 billion and net income of KRW 14.6 billion, and 2Q26 revenue reached KRW 190.8 billion, the highest of the recent five quarters, with operating profit staying elevated at KRW 20.3 billion, though net income fell to KRW 8.7 billion versus 1Q.
This pattern indicates that inventory valuation effects tied to copper price moves, timing lags in passing prices through to sales, and non-operating items materially affect quarterly results.
Over the most recent four quarters (3Q25–2Q26), net income attributable to owners totaled KRW 24.4 billion, well above the FY2025 annual figure of KRW 10.9 billion, driven mainly by the improvement in first-half 2026.
However, FY2025 annual operating cash flow reversed to -KRW 4.8 billion from +KRW 4.8 billion in FY2024, suggesting a heavier working-capital burden from inventories and receivables amid rising raw material prices.
The copper-rolling industry is a raw-material-linked sector directly exposed to global copper prices, macroeconomic conditions, and downstream demand; while costs are generally passed through to selling prices, intensifying competition keeps margins constrained.
The domestic market has an oligopolistic structure led by a handful of large producers, with limited new entry but ongoing share competition among incumbents.
Recently, expansion of AI data centers, power-grid infrastructure, and stronger environmental policy has driven increased demand for data-center power components and copper materials used in eco-friendly automotive parts.
The same dynamic applies to EV adoption, which is lifting demand for battery-related items such as busbars and lead tabs. In 1Q26, the average domestic selling price of copper was KRW 21,173 per kilogram, reflecting a combination of rising raw-material prices and associated inventory valuation effects.
That said, copper prices are highly volatile and closely tied to the global economy, so a price downturn could produce the opposite effect through inventory valuation losses.
The company has stated it is focusing on developing and expanding sales of new products such as busbars, motors, heat sinks, and connectors through facility expansion and continued investment in EV component materials, and that it already supplies tier-1 and tier-2 vendors of major domestic EV battery makers.
Material development is also proceeding in parallel to meet rising demand for data-center power components and eco-friendly automotive parts.
First-half 2026 results showed large increases in both revenue and operating profit, but the decline in 2Q net income versus 1Q warrants watching whether non-operating volatility persists into the second half.
Continued investment in production-efficiency upgrades and inspection equipment to expand higher-value-added products has also been reported.
However, no specific capacity-expansion scale, completion timeline, or annual guidance figures could be confirmed, so these should be checked against future regular disclosures or IR materials.
Whether copper prices hold at current elevated levels or turn lower is a key variable that could directly affect second-half earnings through inventory valuation effects.
The share price trades below per-share book value, placing it in a discount range relative to net assets. The price-to-earnings multiple has fallen well below the level seen when FY2023 net income was nearly wiped out, largely reflecting the earnings recovery over the most recent four quarters.
Dividends are paid annually, but the yield itself is not a level likely to draw significant market attention, and given the industry's earnings volatility, the sustainability of the dividend policy also warrants scrutiny.
Because a substantial portion of earnings is tied to copper price movements and related inventory valuation effects, this valuation relationship could shift depending on future raw-material price trends.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Operating profit came in at KRW 21.3 billion in Q1 2026 and KRW 20.3 billion in Q2 2026, maintaining a level clearly higher than the individual quarters of 2025. The sum of controlling shareholder net income over the most recent four quarters reached KRW 24.4 billion, already surpassing the annual figure for 2025.
This is interpreted as the combined result of inventory valuation gains and the pass-through of sales prices during the copper price upcycle.
Demand for copper product lines used in EV battery busbars and lead tabs is increasing, and the company already supplies these as a tier-1/tier-2 vendor to major domestic battery manufacturers. Development of power components for data centers and materials for eco-friendly automotive parts is also underway.
Applications span automotive, semiconductor, electrical/electronics, and construction sectors, resulting in relatively diversified dependence on any single downstream industry.
The stock is trading below its per-share net asset value. Compared to 2023, when net income sharply declined, the recent earnings recovery has also lowered the price-to-earnings ratio.
This suggests both the possibility that the market has not yet fully reflected the recovered earnings level, and conversely, that doubts about the sustainability of earnings may still remain.
In Q3 2025, operating profit was positive at KRW 3.2 billion, yet controlling shareholder net income recorded a loss of KRW -0.6 billion. In Q2 2026 as well, although revenue reached a quarterly record of KRW 190.8 billion, net income fell to KRW 8.7 billion, down from Q1.
This shows that non-operating items, foreign exchange, and financial costs can have a substantial impact on quarterly earnings.
From 2022 to 2025, the annual operating margin ranged between 2.4% and 5.3%, and even in 2025, when revenue increased, the operating margin actually fell to 4.8%, lower than the previous year.
This reflects how the raw-material price-linked nature of the industry and intensifying domestic competition constrain margin expansion.
The debt ratio rose from 141.2% in 2024 to 158.8% in 2025. Annual operating cash flow in 2025 turned negative at KRW -4.8 billion, reversing from positive KRW 4.8 billion in 2024, suggesting that the burden of net working capital may have increased despite revenue growth.
Prices of non-ferrous metals such as copper fluctuate significantly depending on global market conditions and exchange rates, and are directly reflected in quarterly earnings through inventory valuation effects.
During price upcycles, this works favorably for earnings, but when prices turn downward, negative effects such as inventory valuation losses can occur. Given that the average domestic copper selling price in Q1 2026 stood at KRW 21,173 per kilogram, continued monitoring of future price trends is necessary.
The domestic copper alloy (sindong) market has an oligopolistic structure dominated by a few large players, but is characterized by limited profitability due to intensifying competition. The fact that the operating margin moved within a range of 2.4% to 5.3% from 2022 to 2025 also reflects this structural constraint.
If the expansion of high-value-added products is delayed, the pace of margin improvement could be slower than expected.
The debt ratio moved within a range of 141~165% from 2022 to 2025, rising again to 158.8% in 2025. The fact that operating cash flow turned negative at KRW -4.8 billion in the same year, reversing from the prior year, suggests that the burden of managing net working capital may have increased. The burden of financial costs due to interest rate or exchange rate fluctuations also warrants close attention.
Check the confirmed 3Q26 revenue, operating profit, and net income to assess whether the 2Q26 net income slowdown was temporary or whether non-operating factors are persisting.
Continue monitoring LME copper prices and the won/dollar exchange rate to gauge which direction inventory valuation effects will pull second-half earnings.
Check the confirmed FY2026 annual results, the dividend decision, and whether the debt ratio and cash flow have improved.
Watch for disclosures on new orders or customer expansion related to EV battery materials (busbars, lead tabs) and data-center components.
Lee Ku Industrial produces copper, brass, and phosphor bronze rolled materials and supplies more than 20% of domestic demand, combining a growth driver in rising demand for EV battery materials with the structural characteristic of a raw-material-linked business.
FY2025 annual results showed revenue growth alongside a decline in both operating margin and net income, and while 1H26 showed a clear operational improvement, quarterly net income swung widely due to non-operating factors.
The rise in the debt ratio and the reversal of operating cash flow in FY2025 are variables worth watching from a financial stability standpoint. The share price trades at a discount to net asset value and shows a lower price-to-earnings multiple than in the past, reflecting the recent earnings recovery.
However, because a substantial portion of earnings is tied to copper prices and related inventory valuation effects, confirming whether the current recovery continues will require tracking future raw-material price trends and confirmed results from 3Q26 onward.
Report written 2026-10-01 · Data as of 2026-09-30
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