# Lotte Fine Chemical (004000.KO)

Canonical: https://gigainvestors.com/s/004000.KO

Analysis as of: 2026-10-16T07:45:04.799Z. Financial observations: FY2011–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 40,250.00 per share; close as of 2026-10-15.

Estimated value: low KRW 67,275.99 per share, central KRW 74,029.07 per share, high KRW 83,018.85 per share. Buy at or below the central value KRW 74,029.07 per share. Valuation as of 2026-10-16T07:45:04.799Z; scenarios are not confidence intervals.

Expected annual return: 21.5% at the stated quote. About 21.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.42×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.14×

- FY2019: 0.15×

- FY2020: 0.11×

- FY2021: 0.14×

- FY2022: 0.16×

- FY2023: 0.09×

- FY2024: 0.03×

- FY2025: 0.04×

- LTM to Jun 2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.7%

- ROIC, second-lowest year: 2.4%

- Typical minus recent gross margin: 6.6 pp

- Typical gross margin (annual median): 18.3%

- Recent gross margin (lower of latest and 3-year median): 11.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.1%

- ROIC including acquisitions, ten-year median: 9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.0%

- FY2017: 8.0%

- FY2018: 13.6%

- FY2019: 12.8%

- FY2020: 7.3%

- FY2021: 10.0%

- FY2022: 23.1%

- FY2023: 5.8%

- FY2024: 2.4%

- FY2025: 3.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 933B

- Net income, five-year total: KRW 1.06T

- Return on incremental invested capital: 19.1%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 5.1 pp

- Working capital / revenue, final three-year average: 28.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.01×

- FY2022: 0.97×

- FY2023: 1.19×

- FY2024: -1.15×

- FY2025: 0.24×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.0% vs 3.2%

- Per-share earnings: 3496.03 to 4165.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: KRW 354B

- Cumulative retained earnings: KRW 1.34T

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.5%

- Per-share value change: KRW 668.97

- Per-share value, starting three-year median: KRW 3K

- Per-share value, ending three-year median: KRW 4K

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 15B

- Cumulative net income, 10 years: KRW 1.68T

- ROIC, first three-year median: 8.0%

- ROIC, last three-year median: 3.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW -2K

- FY2017: KRW 3K

- FY2018: KRW 8K

- FY2019: KRW 7K

- FY2020: KRW 8K

- FY2021: KRW 23K

- FY2022: KRW 6K

- FY2023: KRW 7K

- FY2024: KRW 1K

- FY2025: KRW 4K

### accounting: pass

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.84×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.1%

- FY2017: -6.1%

- FY2018: -3.4%

- FY2019: -5.0%

- FY2020: -2.9%

- FY2021: 10.2%

- FY2022: -18.1%

- FY2023: -1.6%

- FY2024: -4.6%

- FY2025: -7.1%

## Holders

## Price story

Down 53% since Oct 2021 · sales +12.9%

Story as of 2026-10-16T10:00:13.288Z; price observation 2026-10-15.

Price needs cash profits to shrink 10.9% a year for ten years

### Sales · FY2025–2026

sales +12.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.16T 

- FY2018: KRW 1.37T 

- FY2019: KRW 1.31T 

- FY2020: KRW 1.26T 

- FY2021: KRW 1.78T 

- FY2022: KRW 2.46T 

- FY2023: KRW 1.77T 

- FY2024: KRW 1.67T 

- FY2025: KRW 1.75T 

- FY2026: KRW 1.98T 

### Gross margin · FY2025

gross margin 11.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 14.7% 

- FY2017: 18.1% 

- FY2018: 21.9% 

- FY2019: 21.6% 

- FY2020: 18.5% 

- FY2021: 19.6% 

- FY2022: 21.3% 

- FY2023: 16.0% 

- FY2024: 10.7% 

- FY2025: 11.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in chemicals; annual sales are KRW 1.8 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2025: revenue 1752682647750; grossProfit 205463026100; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 004000.KO: LOTTE Fine Chemical Co., Ltd. manufactures and sells chemical products in South Korea, the rest of Asia, North America, Europe, and internationally. The company offers chlorine relatives, including epichlorohydrin, caustic soda, tetramethyl ammonium chloride, 3-Chloro-2-Hydroxypropyl trimethylammonium chloride, methyl chloride, methylene chloride, methaclean, chloroform, sodium hypochlorite, and hydrochloric acid; ammonia relatives comprising urea solution, ammonia, monomethylamine, dimethylamine, trimethylamine, and trimethylamine-HCL; and toners for printers. It provides green materials, such as cellulose products, under the MECELLOSE, HECELLOSE, AnyCoat, and AnyAddy brand names. LOTTE Fine Chemical Co., Ltd. was formerly known as SAMSUNG Fine Chemicals Co., Ltd. and changed its name to LOTTE Fine Chemical Co., Ltd. in 2016. LOTTE Fine Chemical Co., Ltd. was incorporated in 1964 and is based in Ulsan, South Korea.

### Why customers stay

Margins ranged from 10.7% to 16% during 2023–25; it earns 7.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2023: grossProfit / revenue = 16%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2024: grossProfit / revenue = 10.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2025: grossProfit / revenue = 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); 10-year return on capital observations [[2016,0.02010046585948802],[2017,0.08029362761224723],[2018,0.13587025885862322],[2019,0.1277117548368001],[2020,0.0728107693403279],[2021,0.09985693209773389],[2022,0.23121547044971041],[2023,0.05756014195792409],[2024,0.023829165871635676],[2025,0.03214640614596273]]; median 0.07655219847628757. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 19.1% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2016: growth capex 0; upkeep 31196096010; owner earnings 6804644380. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2017: growth capex 0; upkeep 62856061110; owner earnings 125978214920. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2018: growth capex 0; upkeep 96455718630; owner earnings 176721500370. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2019: growth capex 0; upkeep 71379926710; owner earnings 187684802180. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2020: growth capex 0; upkeep 177383329700; owner earnings 124606605350. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2021: growth capex 0; upkeep 111827207410; owner earnings 590246391660. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2022: growth capex 20811981530; upkeep 123642803000; owner earnings 142063133120. Growth capex / owner earnings = 0.1464981172308809.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2023: growth capex 0; upkeep 99978561180; owner earnings 216309351310. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2025: growth capex 40286861259.92145; upkeep 231286998450.07855; owner earnings 25825575159.921448. Growth capex / owner earnings = 1.5599598851313246.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); Incremental return on capital 0.19123395606992527, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); Dividend observations: [[2016,12735000000],[2017,7641000000],[2018,20376000000],[2019,43299000000],[2020,43299000000],[2021,38205000000],[2022,58581000000],[2023,89145000000],[2024,50940000000],[2025,35658000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); FY2025: cash repurchases 167360312.5 KRW.

### Are managers owners

Insiders own 43.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 004000.KO SharesStats.PercentInsiders = 43.519999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 10.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:45:04.799Z); Ten-year compound average after fade. Initial solved rate -0.1651671872065394. Price 40250; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 29,000.00 per share

- 2016-11: KRW 27,700.00 per share

- 2016-12: KRW 30,650.00 per share

- 2017-01: KRW 30,600.00 per share

- 2017-02: KRW 33,750.00 per share

- 2017-03: KRW 38,650.00 per share

- 2017-04: KRW 38,500.00 per share

- 2017-05: KRW 42,400.00 per share

- 2017-06: KRW 39,350.00 per share

- 2017-07: KRW 43,250.00 per share

- 2017-08: KRW 43,550.00 per share

- 2017-09: KRW 41,350.00 per share

- 2017-10: KRW 40,250.00 per share

- 2017-11: KRW 59,700.00 per share

- 2017-12: KRW 64,900.00 per share

- 2018-01: KRW 76,800.00 per share

- 2018-02: KRW 70,600.00 per share

- 2018-03: KRW 70,700.00 per share

- 2018-04: KRW 68,600.00 per share

- 2018-05: KRW 68,600.00 per share

- 2018-06: KRW 65,000.00 per share

- 2018-07: KRW 61,500.00 per share

- 2018-08: KRW 60,800.00 per share

- 2018-09: KRW 51,900.00 per share

- 2018-10: KRW 40,750.00 per share

- 2018-11: KRW 42,250.00 per share

- 2018-12: KRW 41,050.00 per share

- 2019-01: KRW 45,300.00 per share

- 2019-02: KRW 48,500.00 per share

- 2019-03: KRW 44,100.00 per share

- 2019-04: KRW 48,100.00 per share

- 2019-05: KRW 50,200.00 per share

- 2019-06: KRW 52,800.00 per share

- 2019-07: KRW 48,750.00 per share

- 2019-08: KRW 43,600.00 per share

- 2019-09: KRW 45,600.00 per share

- 2019-10: KRW 44,200.00 per share

- 2019-11: KRW 44,950.00 per share

- 2019-12: KRW 45,150.00 per share

- 2020-01: KRW 39,050.00 per share

- 2020-02: KRW 33,200.00 per share

- 2020-03: KRW 31,050.00 per share

- 2020-04: KRW 39,000.00 per share

- 2020-05: KRW 37,850.00 per share

- 2020-06: KRW 34,450.00 per share

- 2020-07: KRW 43,750.00 per share

- 2020-08: KRW 44,700.00 per share

- 2020-09: KRW 49,650.00 per share

- 2020-10: KRW 48,500.00 per share

- 2020-11: KRW 55,000.00 per share

- 2020-12: KRW 55,200.00 per share

- 2021-01: KRW 54,400.00 per share

- 2021-02: KRW 53,400.00 per share

- 2021-03: KRW 58,700.00 per share

- 2021-04: KRW 68,000.00 per share

- 2021-05: KRW 66,300.00 per share

- 2021-06: KRW 66,000.00 per share

- 2021-07: KRW 72,500.00 per share

- 2021-08: KRW 70,100.00 per share

- 2021-09: KRW 91,200.00 per share

- 2021-10: KRW 85,100.00 per share

- 2021-11: KRW 78,100.00 per share

- 2021-12: KRW 75,000.00 per share

- 2022-01: KRW 68,000.00 per share

- 2022-02: KRW 79,300.00 per share

- 2022-03: KRW 79,200.00 per share

- 2022-04: KRW 81,500.00 per share

- 2022-05: KRW 83,900.00 per share

- 2022-06: KRW 65,500.00 per share

- 2022-07: KRW 65,800.00 per share

- 2022-08: KRW 70,500.00 per share

- 2022-09: KRW 56,300.00 per share

- 2022-10: KRW 56,100.00 per share

- 2022-11: KRW 62,500.00 per share

- 2022-12: KRW 56,700.00 per share

- 2023-01: KRW 57,300.00 per share

- 2023-02: KRW 58,100.00 per share

- 2023-03: KRW 58,400.00 per share

- 2023-04: KRW 61,300.00 per share

- 2023-05: KRW 58,800.00 per share

- 2023-06: KRW 69,400.00 per share

- 2023-07: KRW 64,800.00 per share

- 2023-08: KRW 60,400.00 per share

- 2023-09: KRW 58,500.00 per share

- 2023-10: KRW 56,000.00 per share

- 2023-11: KRW 57,800.00 per share

- 2023-12: KRW 58,000.00 per share

- 2024-01: KRW 49,750.00 per share

- 2024-02: KRW 47,500.00 per share

- 2024-03: KRW 46,850.00 per share

- 2024-04: KRW 45,150.00 per share

- 2024-05: KRW 47,950.00 per share

- 2024-06: KRW 44,500.00 per share

- 2024-07: KRW 46,450.00 per share

- 2024-08: KRW 48,700.00 per share

- 2024-09: KRW 48,000.00 per share

- 2024-10: KRW 46,250.00 per share

- 2024-11: KRW 34,350.00 per share

- 2024-12: KRW 39,350.00 per share

- 2025-01: KRW 39,700.00 per share

- 2025-02: KRW 40,500.00 per share

- 2025-03: KRW 37,150.00 per share

- 2025-04: KRW 34,750.00 per share

- 2025-05: KRW 37,900.00 per share

- 2025-06: KRW 39,450.00 per share

- 2025-07: KRW 43,000.00 per share

- 2025-08: KRW 41,700.00 per share

- 2025-09: KRW 46,300.00 per share

- 2025-10: KRW 45,600.00 per share

- 2025-11: KRW 45,650.00 per share

- 2025-12: KRW 44,550.00 per share

- 2026-01: KRW 47,450.00 per share

- 2026-02: KRW 51,100.00 per share

- 2026-03: KRW 48,850.00 per share

- 2026-04: KRW 69,400.00 per share

- 2026-05: KRW 52,700.00 per share

- 2026-06: KRW 44,050.00 per share

- 2026-07: KRW 44,650.00 per share

- 2026-08: KRW 47,800.00 per share

- 2026-09: KRW 43,200.00 per share

- 2026-10: KRW 41,500.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 11,484.83 per share, central KRW 11,887.45 per share, high KRW 12,423.43 per share

- FY2017: low KRW 35,840.99 per share, central KRW 38,974.22 per share, high KRW 43,145.21 per share

- FY2018: low KRW 53,475.17 per share, central KRW 59,277.49 per share, high KRW 67,001.61 per share

- FY2019: low KRW 78,118.68 per share, central KRW 86,548.33 per share, high KRW 97,769.98 per share

- FY2020: low KRW 64,227.92 per share, central KRW 72,351.34 per share, high KRW 83,165.33 per share

- FY2021: low KRW 108,849.88 per share, central KRW 122,421.13 per share, high KRW 140,487.33 per share

- FY2022: low KRW 195,723.45 per share, central KRW 268,320.69 per share, high KRW 310,594.20 per share

- FY2023: low KRW 132,484.20 per share, central KRW 181,961.70 per share, high KRW 210,772.53 per share

- FY2024: low KRW 87,154.68 per share, central KRW 96,899.25 per share, high KRW 109,871.33 per share

- FY2025: low KRW 58,368.49 per share, central KRW 64,347.66 per share, high KRW 72,307.19 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:50:47.072Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations