051915:KRXLG Chem, Ltd. Analysis

LG Chem trades at KRW 146,700, comfortably above the computed support of KRW 141,600 but far below the DCF‑derived fair value of roughly KRW 370,000, suggesting a sizable valuation gap. The stock’s RSI sits at 42, indicating a neutral momentum, while the MACD is bearish with the line well under the signal, and volume is on a decreasing trend, all pointing to limited short‑term upside.
Fundamentally, the company is under pressure: operating margin is –3.7%, net profit margin –4.0%, ROE –3.8%, and free cash flow is negative KRW 6.6 trillion despite a strong cash balance. Debt is high (KRW 33.8 trillion) with a debt‑to‑equity ratio of 71.8, and the dividend yield of 1.4% appears unsustainable given the cash‑flow strain. Recent shareholder activism targeting the “Korea Discount” adds a governance catalyst but does not immediately resolve the financial headwinds.