KOSDAQChemicals170920

Ltc

₩43,600▼ 1.13%2026-10-02 close

Market Cap

₩459B

Turnover

₩5.4B

Volume

120,000 shares

Shares out.

10.6M

PER

17.3×

PBR

2.5×

EPS

₩2,078

Dividend Yield

0.28%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close

Report overview

Materials-Equipment Duo Drives Earnings Recovery

LTC has shown a clear recovery in revenue and operating profit since 2025 on the back of its two pillars—NAND materials (HSP) and wafer cleaning equipment (LSE) supplied to SK Hynix—while a governance issue tied to its subsidiary's stalled IPO remains unresolved.

1
Operating margins reached 18.3% and 16.5% in 2026Q1 and 2026Q2, respectively, a marked step-up from the 2025 quarterly average.
2
Subsidiary LSE's KOSDAQ IPO was withdrawn in September 2025 amid minority shareholder opposition, though the company has signaled intent to pursue listing again in the future.
3
As SK Hynix shifts toward higher-layer NAND (300+ layers), LTCAM's HSP material volume and product mix are improving in tandem.
4
The HBM4-targeted glue stripper is undergoing customer testing, and results could determine whether the standalone (non-consolidated) business turns profitable.
5
2025 net income attributable to owners declined despite higher operating profit, due to a derivative valuation loss linked to convertible bonds.

Business structure

LTC Co., Ltd. was founded in 2007 and listed on KOSDAQ in 2013 as a specialist in semiconductor and display process materials and equipment. The company originally focused on display materials such as PR strippers for LCD, then diversified into semiconductor materials through the 2015 acquisition of LTCAM.

In 2022 it acquired the semiconductor cleaning equipment division of Mujin Electronics, rebranding it as LSE and extending its reach into equipment.

The group currently consists of seven affiliates, including LTC (parent, display and HBM-related materials), LTCAM (semiconductor cleaning solutions, etchants, CMP slurry, HSP), and LSE (wafer cleaning equipment).

Its largest customer is SK Hynix, and its HSP (high-selectivity phosphoric acid) material is estimated to hold a majority share in SK Hynix's high-layer NAND process. The cleaning equipment segment reportedly holds a 30-60% share depending on the process, ranking among the top domestic vendors.

As of the first half of this year, cleaning equipment reportedly accounted for more than half of LTC's product sales, while the relative weight of display materials has been shrinking.

Earnings trend

Quarterly revenue · Operating profit

₩61.3B₩4.9B25Q2₩67.9B₩8.2B25Q3₩105.2B₩7.1B25Q4₩98.8B₩18.1B26Q1₩140.9B₩23.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩219.4B₩10.8B2022₩113.4B-₩16B2023₩277B₩24.2B2024₩310.4B₩29.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩61.3B	₩4.9B	8.0%
2025Q3	₩67.9B	₩8.2B	12.1%
2025Q4	₩105.2B	₩7.1B	6.7%
2026Q1	₩98.8B	₩18.1B	18.3%
2026Q2	₩140.9B	₩23.2B	16.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩219.4B	₩10.8B	₩2.1B	4.9%	2.6%	191.0%
2023	₩113.4B	-₩16B	-₩25.6B	−14.2%	−30.6%	172.8%
2024	₩277B	₩24.2B	₩10.1B	8.7%	9.3%	73.9%
2025	₩310.4B	₩29.6B	₩4.8B	9.5%	3.7%	71.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

LTC's operating profit margin was 4.9% on revenue of KRW 219.4 billion in 2022, but revenue plunged to KRW 113.4 billion in 2023, and the company swung to an operating loss of KRW 16.0 billion and a net loss attributable to owners of KRW 25.6 billion.

In 2024, revenue rebounded to KRW 277.0 billion (+144%) with an operating profit of KRW 24.2 billion (8.7% margin), marking a turnaround, and in 2025 revenue reached a record KRW 310.4 billion (+12%) with operating profit of KRW 29.6 billion (9.5% margin).

However, 2025 net income attributable to owners fell to KRW 4.8 billion from KRW 10.1 billion in 2024, reflecting a derivative valuation loss related to convertible bonds—an accounting item unrelated to actual cash flow.

On a quarterly basis, 2025Q2 revenue was KRW 61.3 billion with operating profit of KRW 4.9 billion (8.0% margin) and a net loss attributable to owners of KRW 1.2 billion, before improving to KRW 67.9 billion revenue/KRW 8.2 billion operating profit (12.1%)/KRW 0.35 billion net income in Q3, and KRW 105.2 billion revenue/KRW 7.1 billion operating profit (6.7%)/KRW 2.9 billion net income in Q4.

In 2026, revenue and profit expanded further, with Q1 revenue of KRW 98.8 billion, operating profit of KRW 18.1 billion (18.3% margin), and net income of KRW 8.3 billion, followed by Q2 revenue of KRW 140.9 billion, operating profit of KRW 23.2 billion (16.5% margin), and net income of KRW 9.7 billion.

Net income attributable to owners over the trailing four quarters (2025Q3-2026Q2) totaled roughly KRW 21.3 billion, a substantial increase from the prior four-quarter period.

This earnings improvement appears to reflect the combined effect of an improving materials product mix from higher-layer NAND and expanding cleaning equipment sales.

Industry analysis

The World Semiconductor Trade Statistics (WSTS) organization forecasts that the global semiconductor market will grow more than 25% year-over-year in 2026 to approximately $975 billion, driven by expanding AI infrastructure investment, with the memory segment expected to grow in the 30% range, outpacing the overall market.

SK Hynix maintains an oligopolistic position in the HBM market with a 57% revenue share as of the third quarter of 2025, directly linking to the business foundation of the LTC group, which supplies materials and equipment to SK Hynix.

Samsung Electronics has also stated that its HBM4 revenue is expected to more than triple quarter-over-quarter in the second quarter of 2026, indicating that advanced-process investment and a shift toward higher-value-added products are occurring across the memory industry simultaneously.

Within this backdrop, LTC's HSP material is structured such that usage volume and technical requirements increase as NAND layer counts rise, suggesting room for its adoption share to expand relative to competing products.

In the cleaning equipment market, the ongoing trend of localizing previously Japanese-supplied equipment is cited as an opportunity for domestic vendors, including LSE, to expand market share.

That said, the memory industry is cyclical by nature with price and demand volatility, and some market research firms have raised the possibility that HBM pricing could adjust downward after 2026 amid intensifying competition, warranting continued monitoring.

Outlook

SK Hynix's Cheongju M15X fab is scheduled for completion in 2026, and the clean room opening for the Yongin cluster's Y1 fab has reportedly been moved up to February 2027, with these new fab investments cited as medium-term growth drivers for LTC group's materials and equipment sales.

LTCAM is shifting its product mix by discontinuing supply of lower-priced HSP for 176-layer NAND starting in the third quarter in favor of expanding 321-layer volume, and is expected to be the exclusive supplier of CMP slurry to the M15X line.

Independent research firm Growth Research stated on July 9 that LTCAM's dedicated supply of the small-scale central chemical supply system (CCSS) attached to LSE's cleaning equipment is expected to generate new captive revenue of KRW 20-30 billion annually.

In the standalone (parent) business, an HBM4-targeted glue stripper is undergoing customer testing, and analysis suggests that if results are favorable by the end of the third quarter, sales could materialize in the fourth quarter, potentially serving as a catalyst for the parent segment to turn profitable.

Subsidiary LSE's KOSDAQ listing was withdrawn in September 2025 amid minority shareholder opposition, but the company has stated it intends to strengthen communication with parent-company shareholders and pursue the listing again in the future, making any re-filing a key point to watch.

Based on this growth structure, Growth Research forecast on July 9 that revenue would reach KRW 432.9 billion with operating profit of KRW 65.0 billion in 2026, and KRW 600.0 billion in revenue with KRW 95.0 billion in operating profit in 2027.

Valuation

PER

17.3×

PBR

2.5×

ROE

16.5%

EPS

₩2,078

BPS

₩14,203

Dividend per share

₩100

Since turning from a loss in 2023 to profitability in 2024-2025, LTC has shown a further step-up in operating margin in the first half of 2026, meaning its earnings base itself has shifted from the level seen during the earlier period of weak performance, making historical valuation multiples from that era less directly comparable.

The stock's price relative to net asset value is understood to trade at a higher level than during the prior loss-making period, which can be interpreted as reflecting some degree of market expectation for earnings recovery.

Some brokerage analysis has noted that materials companies with more stable earnings tend to be supported at a lower multiple floor within the semiconductor materials and equipment sector, though this reflects a specific point-in-time comparison and may not directly apply going forward.

On the shareholder-return front, an expanding dividend payout ratio, treasury share cancellations, and bonus share issuances are being implemented in stages, warranting attention to potential future changes in share count and per-share metrics.

Ultimately, the current valuation appears to be a segment where market assessment could shift depending on the sustainability of the earnings recovery and how the governance issue surrounding the subsidiary's listing plan is resolved.

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 2026-08-22

Bull factors

Beneficiary of Higher-Layer NAND Transition

HSP material usage and technical requirements increase as NAND layer counts rise, so LTCAM's revenue volume and product mix have room to improve as SK Hynix expands its share of 300+ layer NAND.

As the higher-priced 321-layer product gains share over the lower-priced 176-layer product, profitability improvement in the materials segment could follow. This structure is cited as a background factor behind the sharp rise in operating margin in the first and second quarters of 2026 versus the prior year.

Equipment Demand from New Fab Investment

The expansion of SK Hynix's Cheongju M15X fab (scheduled for completion in 2026) and Yongin cluster Y1 fab (clean room opening moved up to February 2027) is cited as the backdrop for expanding cleaning equipment supply.

Some analysis notes that cleaning equipment is required across the entire semiconductor process, limiting the likelihood of vendor switching. The trend of localizing previously Japanese-supplied equipment is also mentioned as a favorable environment for domestic vendor LSE.

New Products and Expanded Shareholder Returns

An HBM4-targeted glue stripper is undergoing customer testing, and analysis suggests that if results are favorable, it could become a new revenue source and a catalyst for the standalone business to turn profitable.

In August 2025, the company began sequentially implementing shareholder return measures, including the cancellation of 300,000 treasury shares followed by a 100-200% bonus share issuance, along with an expanded dividend payout ratio.

The period during which 50% of LSE's dividend attributable to LTC is paid out as a special cash dividend was also extended.

Bear factors

Uncertainty over Subsidiary Listing Re-attempt

LSE's KOSDAQ listing plan progressed to a preliminary review filed in June 2025, but the review was delayed amid minority shareholder opposition, leading the company to voluntarily withdraw the application in September of that year.

The company has stated its intent to pursue listing again in the future, but no specific timeline has been confirmed. If the duplicate-listing controversy resurfaces, conflict related to parent-company shareholder value could recur.

Single-Customer Dependency

A significant portion of LTC group's materials and equipment revenue is understood to depend on SK Hynix. Changes to that customer's investment plans or delays in process transitions could directly affect material volumes and equipment order timing.

Given that the predecessor company, Mujin Electronics, was previously expelled from the SK Hynix supplier network following a trade secret leak incident, ongoing management of the customer relationship remains an important variable.

Accounting Volatility from Derivatives and Convertible Bonds

In the third quarter of 2025, a derivative valuation loss of approximately KRW 5.3 billion related to the fifth round of convertible bonds was recognized, limiting net income growth despite higher operating profit.

While such losses stem from fair-value accounting tied to share price movements and are unrelated to actual cash flow, net income could continue to fluctuate with share price changes going forward. Potential dilution effects should also be considered if the convertible bonds are converted into shares.

Risk factors

Governance

The listing issue involving subsidiary LSE has previously led to conflict between the parent company and minority shareholders, and similar friction could recur during any future re-attempt.

As LSE is a core subsidiary accounting for a significant portion of group earnings, the listing method and terms could affect how parent-company shareholder value is assessed. This represents a structural risk requiring alignment of interests across group affiliates.

Customer Concentration Risk

With a substantial portion of revenue concentrated on SK Hynix, earnings could be sensitive to changes in that customer's investment cycle or process transition plans.

Memory semiconductors are subject to demand and price volatility tied to industry cycles, and if new fab operation schedules are delayed, the timing of equipment and material revenue recognition could also be pushed back.

Financial and Accounting Volatility

The structure whereby derivative valuation gains and losses related to convertible bonds affect net income based on share price movements means similar accounting volatility could recur in the future.

Additionally, given the history of a temporarily large loss during a business restructuring phase in 2023, continued monitoring of changes to the financial structure during new investment or business expansion phases is warranted.

What to watch next

Late September to early October 2026
Check whether results of the end-of-third-quarter customer testing for the HBM4-targeted glue stripper are announced. Favorable results would raise the likelihood of fourth-quarter revenue contribution and a turn to profitability for the standalone parent segment.
Mid-November 2026 (expected 2026Q3 earnings disclosure)
Check whether consolidated revenue and operating profit in the third quarter of 2026 maintain the elevated margin level seen in the second quarter, and whether one-off derivative-related items recur in net income attributable to owners.
Timing of any disclosure on LSE's renewed listing attempt
Check whether LSE files a renewed preliminary listing review application, and if so, whether the shareholder-return terms differ from those previously announced. This could directly affect the assessment of parent-company shareholder value.
News related to SK Hynix's Cheongju M15X fab operation in the second half of 2026
The M15X fab's operation timing and initial utilization rate could affect the number of cleaning equipment units supplied by LSE and the start of LTCAM's exclusive CMP slurry supply, warranting confirmation.
Timing of follow-up disclosures on shareholder return policy
Check the specific execution timing of the 100-200% bonus share issuance to follow the completion of the 300,000-share treasury cancellation, and whether any additional treasury share cancellation plans are announced.

Overall view

After a loss-making year in 2023, LTC turned profitable in 2024-2025, and its operating margin stepped up further in the first half of 2026, with both the materials segment (LTCAM) and the equipment segment (LSE) showing simultaneous earnings improvement.

SK Hynix's shift toward higher-layer NAND and new fab investment are cited as the backdrop for medium-term growth, and whether new products such as the HBM4-targeted glue stripper generate revenue is the next point to watch.

That said, 2025 net income attributable to owners declined despite higher operating profit due to a derivative valuation loss tied to convertible bonds, underscoring the need to understand this accounting volatility.

Subsidiary LSE's KOSDAQ listing was withdrawn amid minority shareholder opposition and remains uncertain as to whether it will be re-attempted, meaning governance-related risk coexists with the earnings improvement.

The business structure's high customer concentration also means results could be sensitive to changes in SK Hynix's investment cycle.

Overall, LTC appears to be in a phase where the substance of an earnings recovery is being confirmed through quarterly figures, even as non-operational variables—the subsidiary listing and governance issue, along with accounting volatility—remain present.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.