KOSDAQIT & Software322180

LS Thira-utech

₩4,630▲ 6.81%2026-10-02 close

Market Cap

₩99.5B

Turnover

₩900M

Volume

190,000 shares

Shares out.

21.5M

PER

—

PBR

1.3×

EPS

-₩642

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Smart Factory Expansion Continues Amid Persistent Losses

Since LS Electric became the controlling shareholder, revenue has grown for four straight years, but operating and net losses have widened further into 2026.

1
LS Electric became the controlling shareholder via a 2024 stake acquisition (31.8% as of end-August 2026), improving the capital base and raising expectations of group synergy.
2
Consolidated revenue rose for four straight years from KRW 35.9bn in 2022 to KRW 58.9bn in 2025, yet the company posted an operating loss in every one of those years.
3
Operating losses in 1Q26 and 2Q26 (KRW -2.6bn and KRW -2.65bn) and the 2Q26 net loss attributable to owners (KRW -5.81bn) widened relative to the smaller losses and brief operating profit seen in 2Q25 and 4Q25.
4
Subsidiary Thira Robotics was designated an 'AI Factory' specialist company by the government and is co-developing MobED-based logistics robots with Hyundai Motor Group Robotics Lab, expanding into robotics hardware.
5
The debt ratio fell sharply from 322.4% in 2023 to 58.9% in 2025, but operating cash flow has grown more negative every year, from KRW -1.19bn in 2022 to KRW -6.87bn in 2025.

Business structure

LS Thira-Utech was founded in August 2006 and listed on KOSDAQ in 2019 as a smart factory software company.

In 2024, LS Electric became the controlling shareholder with a 30.67% stake through a combination of existing-share purchases and a third-party capital increase, with a private equity fund affiliated with JKL Partners joining as the second-largest shareholder.

As of end-August 2026, the ownership structure consisted of LS Electric at 31.8%, the JKL ESG Future Mobility Value Chain private fund at 21.2%, and founder Kim Jeong-ha at 7.9%.

The company's core business rests on SCM, MES, and factory-automation software, complemented by subsidiary Thira Robotics' autonomous mobile robots (AMR) and Thira ArtRobo's Cartesian robots and automation components to offer a total smart factory solution.

Its main customer base spans secondary battery, semiconductor, and display manufacturers, drawing on experience building unmanned automated factory systems for these high-tech industries.

In robotics hardware, the company is developing MobED-platform logistics transport robots in partnership with Hyundai Motor Group Robotics Lab, expanding into physical automation.

Subsidiary Thira Robotics was designated an 'AI Factory' specialist company under a program run by the Ministry of Trade, Industry and Energy and the Korea Institute for Advancement of Technology (KEIT), securing eligibility to participate in related government support projects.

Earnings trend

Quarterly revenue · Operating profit

₩15.4B₩100M25Q2₩13B-₩1.6B25Q3₩18.4B₩100M25Q4₩14B-₩2.6B26Q1₩16.8B-₩2.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩35.9B-₩4.3B2022₩54.4B-₩3.8B2023₩57.5B-₩7.9B2024₩58.9B-₩4.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩15.4B	₩100M	0.8%
2025Q3	₩13B	-₩1.6B	−12.6%
2025Q4	₩18.4B	₩100M	0.6%
2026Q1	₩14B	-₩2.6B	−18.6%
2026Q2	₩16.8B	-₩2.6B	−15.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩35.9B	-₩4.3B	-₩4.5B	−11.9%	−26.2%	100.7%
2023	₩54.4B	-₩3.8B	-₩5.6B	−7.1%	−35.2%	322.4%
2024	₩57.5B	-₩7.9B	-₩2.2B	−13.8%	−5.6%	117.6%
2025	₩58.9B	-₩4.3B	-₩8.3B	−7.3%	−12.0%	58.9%

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

Earnings analysis

Consolidated revenue reached KRW 58.9bn in 2025, up for four consecutive years from KRW 35.9bn in 2022 (KRW 35.9bn -> 54.4bn -> 57.5bn -> 58.9bn).

However, operating profit remained negative in every one of those four years (KRW -4.3bn, -3.8bn, -7.9bn, -4.3bn), with the operating margin ranging between -7.1% and -13.8% without ever turning positive on an annual basis.

Net loss attributable to owners widened from KRW -4.5bn in 2022 to KRW -5.6bn in 2023, narrowed to KRW -2.2bn in 2024, then widened again to KRW -8.3bn in 2025.

On a quarterly basis, the company posted modest operating profits of KRW 0.13bn and KRW 0.11bn in 2Q25 and 4Q25, respectively, but operating losses widened again through 3Q25 (KRW -1.63bn), 1Q26 (KRW -2.6bn), and 2Q26 (KRW -2.65bn).

The net loss attributable to owners in 2Q26 reached KRW -5.81bn, the largest among the most recent five quarters (2Q25-2Q26). The sum of net losses attributable to owners over the latest four quarters (3Q25-2Q26) totaled roughly KRW -13.47bn, indicating no clear improvement trend yet.

On the balance sheet, the debt ratio fell sharply from 322.4% in 2023 to 58.9% in 2025, and equity attributable to owners grew from KRW 16.0bn in 2023 to KRW 69.1bn in 2025, reflecting capital inflows tied to the 2024 share acquisition and subsequent capital increases.

Operating cash flow, however, has grown more negative every year, from KRW -1.19bn in 2022 to KRW -6.87bn in 2025, indicating that the core business has not yet been able to generate cash internally.

Industry analysis

Demand for smart factory and industrial software is tied to the capital expenditure cycles of high-tech manufacturers such as secondary battery and semiconductor makers, so revenue tends to fluctuate with the pace of capacity expansion in those downstream industries.

The government operates support programs to encourage the shift to intelligent manufacturing, including the 'AI Factory' specialist company designation run by the Ministry of Trade, Industry and Energy and KEIT, which can translate into eligibility for related project participation.

At the same time, the spread of AI data centers and aging power-grid replacement demand has been a positive tailwind for LS Group's broader power and automation businesses, opening up possibilities for linkage between smart factory and power solutions across group affiliates.

Indeed, LS Electric staged an integrated exhibit at the 2026 InterBattery show together with affiliates including LS Thira-Utech, spanning energy storage systems, data centers, and smart factory solutions to highlight group-level synergy.

That said, automation investment can slow depending on interest rate conditions and manufacturing sentiment, so it would be premature to conclude the smart factory industry is at the very start of an unambiguous growth cycle.

The domestic smart factory and automation value chain includes a range of players of varying scale, such as POSCO DX, Cowin Tech, SMCore, Samick THK, and Konics Automation, making it a market with meaningful competitive intensity.

Outlook

The company announced at AW 2026 (Automation World) in March 2026 that it unveiled the 'MobED Alliance' with Hyundai Motor Group Robotics Lab and plans to develop MobED-platform logistics transport robots in-house, with a proof-of-concept (PoC) at a manufacturing site planned for the first half of 2026.

This collaboration is part of a strategy to combine its software-centric MES capabilities with hardware robotics, extending the business model beyond digital automation into physical automation.

In 2026, the company was also reported to be pursuing a sale of part of its stake in subsidiary Thira Robotics to a financial investor to secure funding, with observers suggesting the proceeds could be used for R&D and business expansion.

In March 2026, the company joined LS Electric and other LS Group affiliates at the 'InterBattery 2026' exhibition to present an 'AI-driven integrated operations model' built on its own platform, exploring linkages between smart factory and energy solutions within the group.

The company has not publicly disclosed quantified annual revenue or order guidance, so the pace of any earnings improvement will need to be tracked through individual project wins and the revenue contribution of the robotics business.

Unifying sales channels through the 'Beyond X for Smart Factory' integrated platform operated jointly with LS Electric and LS ITC is also cited as a potential avenue for revenue expansion.

Valuation

PER

—

PBR

1.3×

ROE

-25.7%

EPS

-₩642

BPS

₩2,971

Dividend per share

₩0

The stock trades at a level modestly above net asset value, suggesting the market is partly pricing in the improved capital structure following LS Electric's entry and expectations around the expansion of the robotics and smart factory business, despite years of accumulated net losses.

The company has continued to post operating and net losses even on a trailing four-quarter combined basis, so a clear signal of a profit turnaround has not yet emerged.

As the company maintains a no-dividend policy, it is better characterized as a name evaluated on its growth and structural-improvement narrative rather than dividend appeal.

The sharp decline in the debt ratio from the 300% range to below 60% over recent years can be viewed as an improvement in the capital structure, though it should be considered alongside the fact that this was driven largely by external capital inflows through rights offerings.

Ultimately, valuation sits in a range that could shift depending on whether an earnings turnaround materializes and how quickly the robotics business contributes to revenue.

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

Bull factors

Capital Structure Improved After LS Electric Became Controlling Shareholder

LS Electric became the controlling shareholder in 2024 through existing-share purchases and a capital increase, securing a 30.67% stake, which had grown to 31.8% as of end-August 2026. The capital that flowed in through this process helped lower the debt ratio from 322.4% in 2023 to 58.9% in 2025.

The company is also positioned to benefit from group-level sales and technology synergies through the integrated 'Beyond X for Smart Factory' platform it operates with affiliate LS ITC.

Expansion into Robotics and Automation Hardware

Subsidiary Thira Robotics was designated an 'AI Factory' specialist company by the Ministry of Trade, Industry and Energy and KEIT, gaining eligibility for government support projects.

Its collaboration network in robotics hardware is also widening, including developing MobED-platform logistics transport robots with Hyundai Motor Group Robotics Lab. This can be read as an attempt to extend the existing software-centric business model by adding hardware robotics.

Four Consecutive Years of Revenue Growth

Consolidated revenue has expanded for four consecutive years, from KRW 35.9bn in 2022 to KRW 58.9bn in 2025. Automation investment demand from customer industries such as secondary batteries and semiconductors is understood to have underpinned this revenue base over the period.

However, it is also worth noting that top-line growth has not translated directly into profitability improvement.

Bear factors

Operating Losses in Every One of the Past Four Years

Annual operating profit was negative in every year from 2022 to 2025, at KRW -4.3bn, -3.8bn, -7.9bn, and -4.3bn respectively. The operating margin has stayed confined to a range of -7.1% to -13.8%, with no clear catalyst yet for a turn to profit. Net loss attributable to owners has also ranged from KRW -4.5bn to KRW -8.3bn depending on the year.

Losses Have Widened in Recent Quarters

The company posted small quarterly operating profits of KRW 0.13bn and KRW 0.11bn in 2Q25 and 4Q25, but operating losses widened again through 3Q25 (KRW -1.63bn), 1Q26 (KRW -2.6bn), and 2Q26 (KRW -2.65bn). The net loss attributable to owners in 2Q26 reached KRW -5.81bn, the largest of the most recent five quarters.

The combined net loss attributable to owners over the latest four quarters (3Q25-2Q26) totaled about KRW -13.47bn, with no improvement trend yet visible.

Persistently Negative Operating Cash Flow

Operating cash flow has grown more negative every year, from KRW -1.19bn in 2022 to KRW -6.87bn in 2025. This suggests the core business has not been generating cash and has continued to rely on external financing.

The cash flow burden could increase further if investment in robotics and automation hardware expands going forward.

Risk factors

Concentration Risk in Downstream Industries

The revenue base is concentrated in automation investment from a limited set of high-tech manufacturing industries such as secondary batteries, semiconductors, and displays, so a slowdown or delay in capital spending in these sectors could directly affect order intake and revenue.

A customer structure weighted toward a small number of large manufacturers increases sensitivity to shifts in any single customer's investment decisions.

Ownership Structure and Financial Investor Exit Uncertainty

LS Electric and JKL Partners have call and put options on portions of their respective stakes, meaning the ownership structure could change depending on whether these options are exercised in the future.

A process to sell part of the stake in subsidiary Thira Robotics to a financial investor has also reportedly been underway, so potential changes in the subsidiary's governance structure warrant monitoring as well.

Dilution Risk from Further Capital Raising

The company has improved its capital structure since 2024 through rights offerings and other forms of external funding. If continued operating losses and negative operating cash flow necessitate further fundraising, existing shareholders could face dilution.

What to watch next

Mid-November 2026 (expected 3Q26 quarterly report filing)
Once 3Q26 consolidated results are disclosed, it will be important to check whether the widening operating loss trend seen in 1Q26 and 2Q26 continues or eases.
During the fourth quarter of 2026
Watch for disclosures on whether the sale of a stake in subsidiary Thira Robotics to a financial investor is finalized, and how any proceeds are deployed toward robotics business investment.
Second half of 2026 through early 2027
This is the window to check the outcome of the MobED-based logistics robot PoC conducted with Hyundai Motor Group Robotics Lab in H1 2026, and whether it leads to commercialization or an expanded contract.
Around February 2027 (expected preliminary FY2026 results announcement)
This will be the point to confirm whether full-year 2026 operating results break the four-year streak of annual losses and whether the revenue growth trend has held.

Overall view

LS Thira-Utech significantly improved its capital structure following LS Electric's entry as controlling shareholder in 2024, and is extending its reach from software-centric operations into hardware automation through robotics subsidiary Thira Robotics.

Consolidated revenue grew for four consecutive years, from KRW 35.9bn in 2022 to KRW 58.9bn in 2025, but operating profit remained negative in every one of those years, meaning top-line growth was not accompanied by profitability improvement.

Notably, both operating losses and net losses attributable to owners widened in 1Q26 and 2Q26, breaking the brief run of quarterly operating profits seen in 2Q25 and 4Q25.

Operating cash flow has also become more negative each year, suggesting continued reliance on external financing to fund growth investment and cover losses.

Robotics collaboration with Hyundai Motor Group and the company's designation under a government AI Factory support program could underpin medium-to-long-term business expansion, while customer concentration and ownership-structure issues such as options and financial investor exits are variables that warrant continued attention.

Investors will need to track upcoming quarterly results and disclosures related to the robotics subsidiary to gauge whether the loss trend improves.

Sources

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

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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.