lg display corporation - investment research (figures)

7/31/2019 LG Display Corporation - Investment Research (Figures)

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APPENDIX

2009 %sales 2010 %sales 2011F %sales 2012F %sales 2013F %sale

Sales ₩20,037,702.00 1.0000 ₩25,511,535.00 1.0000 ₩21,810,992.64 1.0000 ₩26,344,789.80 1.0000 ₩24,533,220.34 1.000

Cost of Sales -₩17,476,996.00 (0.8722) -₩21,780,880.00 (0.8538) ₩20,720,443.01 0.9500 ₩25,027,550.31 0.9500 ₩22,079,898.31 0.900

Gross Profit ₩2,560,706.00 0.1278 ₩3,730,655.00 0.1462 ₩1,090,549.63 0.0500 ₩1,317,239.49 0.0500 ₩2,453,322.03 0.100

SG&A -₩1,445,762.00 (0.0722) -₩2,042,095.00 (0.0800) -₩1,659,795.10 (0.0761) -₩2,071,639.69 (0.0786) -₩1,471,993.22 -0.06

Other expenses -₩104,757.00 (0.0052) -₩378,088.00 (0.0148) -₩218,636.35 (0.0100) -₩268,674.76 (0.0102) -₩257,598.81 -0.01

Operating Income ₩1,010,187.00 0.0504 ₩1,310,472.00 0.0514 -₩787,881.81 (0.0361) -₩1,023,074.96 (0.0388) ₩723,730.00 0.029

Finance Income ₩122,927.00 0.0061 ₩91,203.00 0.0036 ₩105,889.71 0.0049 ₩136,427.46 0.0052 ₩171,732.54 0.007Finance Costs -₩112,632.00 (0.0056) -₩99,659.00 (0.0039) -₩103,901.38 (0.0048) -₩129,682.41 (0.0049) -₩12,266.61 -0.00

Foreign exchange Net ₩88,389.00 0.0044 -₩23,745.00 (0.0009) ₩37,955.26 0.0017 ₩46,609.01 0.0018 ₩49,066.44 0.002

Others, net -₩95,911.00 (0.0048) -₩12,702.00 (0.0005) -₩57,629.22 (0.0026) -₩70,768.60 (0.0027) -₩73,599.66 -0.00

Total ₩2,773.00 0.0001 -₩44,903.00 (0.0018) -₩17,685.62 (0.0008) -₩17,414.54 (0.0007) ₩134,932.71 0.005

Income Before Taxes ₩1,012,960.00 0.0506 ₩1,265,569.00 0.0496 -₩805,567.44 (0.0369) -₩1,040,489.50 (0.0395) ₩858,662.71 0.035

Income Tax Benefit ₩104,818.00 0.0052 -₩106,335.00 (0.0042) ₩11,591.72 0.0005 ₩14,934.68 0.0006 ₩14,719.93 0.000

Net Income/Loss ₩1,117,778.00 0.0558 ₩1,159,234.00 0.0454 -₩793,975.72 (0.0364) -₩1,025,554.82 (0.0389) ₩873,382.64 0.035

Dividend ₩178,900.00

Controlling Interest ₩1,117,778.00 ₩1,156,343.00 -₩788,849.19 -₩1,013,643.43 ₩855,761.03

Non-controlling Interest ₩0.00 ₩2,891.00 -₩5,126.53 -₩11,911.39 ₩17,621.61

(Expressed in Nominal Terms)

For the years 2012 to 2015

Forecasted Income Statement

LG Display Corporation



%sales

1.0000

0.8800

0.1200

-0.0720

-0.0103

0.0378

0.0069-0.0045

0.0022

-0.0027

0.0020

0.0397

0.0006

0.0403



change TV NBPC Desktop Monitors Others

-10% 263.50 60.10 97.29 6.26

-5% 278.14 63.44 102.70 6.61

BASE 292.77 66.78 108.10 6.96

5% 307.41 70.12 113.51 7.3110% 322.05 73.46 118.91 7.66

-10% 256.91 58.60 94.86 6.11

-5% 271.18 61.85 100.13 6.45

BASE 285.46 65.11 105.40 6.79

5% 299.73 68.36 110.67 7.13

10% 314.00 71.62 115.94 7.47

-10% 266.46 60.78 98.39 6.18

-5% 281.26 64.15 103.85 6.53BASE 296.07 67.53 109.32 6.87

5% 310.87 70.91 114.78 7.21

10% 325.67 74.28 120.25 7.56

-10% 267.87 61.10 98.91 6.30

-5% 282.75 64.49 104.40 6.65

BASE 297.63 67.89 109.90 7.00

5% 312.51 71.28 115.39 7.35

10% 327.40 74.68 120.88 7.70

-10% 253.81 59.42 93.71 6.08

-5% 267.91 62.72 98.92 6.42

BASE 282.01 66.02 104.13 6.76

5% 296.11 69.32 109.33 7.10

10% 310.21 72.62 114.54 7.44

Line items 2009 2010 2011 2012 2013

Gross Profit % 12.78% 14.62% 5% 6% 10%

SG&A -7.610% -7.864% -6.000%

Other expenses -1.002% -1.020% -1.050%

Price Simulation

2012

2011

2013

2015

2014

OPERATING CONDITION



Finance Income 0.485% 0.518% 0.700%

Finance Costs -0.476% -0.492% -0.050%

Foreign exchange Net 0.174% 0.177% 0.200%

Others, net -0.264% -0.269% -0.300%

Income Tax Benefit 0.053% 0.057% 0.060%

Inflation Rate - - 0.42% 0.38% 0.39%

Market Risk Premium will increase by 1% 7.20% 7.27% 7.34%

Beta 1.35 1.54 1.3

Balance Sheet Assumptions

Year Description Quantitave terms

2011 Cash and Cash Equivalents grows by 25% 1.25

Short term financial instruments grows by 40% 1.4

Trade accounts and notes receivable collection period shorten 45Inventories will increase by 4.6% 1.046

Other Current Assets will grow by 25% 1.25

Investments and other non current assets will increase by 25% 1.25

Net PPE will increase by 2% 1.02

Net Intangible assets will increase by 5% 1.05

Short term debt will decrease by 42.5% 0.425

Trade Accounts and notes payable will increase by 27.7% 1.277

Other payables and accrued liabilities will increase by 37% 1.37

Long term debt will increase by 50% 1.5

Other non-current liabilities will increase by 2% 1.02Common Stock and additional paid-in capital will be constant 1

R/E will decrease due to net loss -793,976

Other comprehensive income will decrease to 34.5% -0.345

Non-controlling interest equity ₩66,869.25



Trade accounts and notes receivable collection period will be 45 day 45

Inventories will increase by 2% 1.15


Investments and other non current assets will increase by 58% 1.58Net PPE will increase by 25% 1.25


Short term debt will increase by 50% 1.5

Trade accounts and notes payable will increase by 56% 1.56



Other non-current liabilities will increase by 20% 1.2

Common Stock and additional paid-in capital will be held constant 1

Market Condition



R/E will decrease due to net loss -1,025,555

Other comprehensive income will increase by 15% 1.15



Short term financial instruments grows by 37.8% 1.378Trade accounts and notes receivable collection period will be 40 day 40









Long term debt will increase by 25% 1.25Other non-current liabilities will increase by 13% 1.13


R/E will decrease due to dividend payment of 178908 -178,908






Inventories will increase by 27% 1.27Other Current Assets will grow by 22.5% 1.3









Common Stock and additional paid-in capital will be held constant 1R/E will decrease due to dividend payment of 178908 -178,908














Trade accounts and notes payable will increase by 20% 1.2Other payables and accrued liabilities will increase by 10% 1.1

Long term debt will remain 1



R/E will decrease due to dividend payment of 178908 -178,908



Cash flow assumptions

Description Quantitative term

Depreciation is 25% of PPE 0.25Amortization of intangible assets is 25% of the account 0.25

Gain on disposal of intangible assets is 15% 0.15

Gain on foreign currency translation is 25% 1.25

Loss on foreign currency translation 0.25

Impairment loss on property, plant and equipment is 3% 0.03

Acquisition of property, plant and equipment is 10% 0.1

Acquisition of intangible assets is 10% 0.1

Gain on disposal of property, plant and equipment is 12% 0.12

Loss on disposal of property, plant and equipment is 5% 0.05

Proceeds from short-term borrowings is 15% 0.15Repayment of short-term borrowings is 35% 0.35

Proceeds from long-term debt is 20% 0.2

Repayment of long-term debt is 23% 0.23

Repayment of current portion of long-term debt is 10% 0.1



change TV NBPC Desktop Monitors Others

-10% 38,925 54,340 41,724 157,771

-5% 41,088 57,359 44,042 166,536

BASE 43,250 60,378 46,360 175,301

5% 45,413 63,397 48,678 184,066 10% 47,575 66,416 50,996 192,831

-10% 37,952 52,982 40,681 153,827

-5% 40,060 55,925 42,941 162,373

BASE 42,169 58,869 45,201 170,918

5% 44,277 61,812 47,461 179,464

10% 46,386 64,755 49,721 188,010

-10% 39,363 54,952 42,193 155,700

-5% 41,550 58,004 44,537 164,350 BASE 43,737 61,057 46,882 173,000

5% 45,923 64,110 49,226 181,650

10% 48,110 67,163 51,570 190,300

-10% 42,523 59,363 45,581 170,240

-5% 44,886 62,661 48,113 179,697

BASE 47,248 65,959 50,645 189,155

5% 49,610 69,257 53,178 198,613

10% 51,973 72,555 55,710 208,071

-10% 45,037 62,873 47,136 175,011

-5% 47,539 66,366 49,755 184,734

BASE 50,041 69,859 52,374 194,457

5% 52,544 73,352 54,992 204,179

10% 55,046 76,845 57,611 213,902

2014 2015

12% 15%

-7.250% -7.200%

-1.030% -1.025%

Sales Volume Simulation

2011

2012

2013

2014

2015



0.730% 0.690%

-0.450% -0.450%

0.240% 0.220%

-0.270% -0.265%

0.070% 0.058%

0.38% 0.40%

7.42% 7.49%

1.27 1.28



2009 2010 2011F

1,117,778.00 1,159,234.00 (793,975.72)

Adjustments for: 3,602,379.14 4,438,127.32 3,988,920.19

Depreciation 2,399,124.25 3,203,850.25 3,267,927.26 Amortization of intangible assets 88,098.25 134,975.25 141,724.01

Gain on disposal of intangible assets 52,858.95 80,985.15 85,034.41

Gain on foreign currency translation 110,486.25 29,681.25 47,444.08

Loss on foreign currency translation (22,097.25) 5,936.25 (9,488.82)

Impairment loss on property, plant and equipment (287,894.91) (384,462.03) (392,151.27)

Gain on disposal of property, plant and equipment 959,649.70 1,281,540.10 1,307,170.90

Loss on disposal of property, plant and equipment 959,649.70 1,281,540.10 1,307,170.90

Change in Working Capital 1,588,494.00 1,588,494.00 1,113,387.49

Change in trade accounts and receivables (66,891.00) (50,416.00) 311,634.51

Change in other current assets (148,795.00) (200,411.00) (122,636.50)

Change in inventories (356,874.00) (547,437.00) (101,899.98)

Change in trade accounts and notes payable 708,696.00 930,573.00 820,472.62

Operating Activities 4,720,157.14 5,597,361.32 3,194,944.46

Acquisition of property, plant and equipment 45,853.38 (3,218,904.00) (256,308.02)

Acquisition of intangible assets 959,649.70 (187,508.00) (26,995.05)

Investing Activities 1,005,503.08 (3,406,412.00) (283,303.07)

Proceeds from short-term borrowings (300,535.50) (315,003.45) (133,876.47)

Repayment of short-term borrowings 701,249.50 735,008.05 312,378.42

Proceeds from long-term debt (415,232.00) (508,580.00) (762,870.00)

Repayment of long-term debt 477,516.80 584,867.00 877,300.50

Repayment of current portion of long-term debt 207,616.00 254,290.00 381,435.00

Increase in non-controlling interest - 24,911.00 41,959.25

Payment of cash dividend - - -

Financing Activities 670,614.80 775,492.60 716,326.71

Supplemental Cash flow disclosures

Income tax paid 101,296.00 126,556.90 (80,556.74)

Net Income for the year (Won)

LG Display Corpora

Forecasted Cash flow S



122,927.00 91,203.00 105,889.71

(112,632.00) (99,659.00) (103,901.38)

1,528,446.00 1,661,923.00 2,077,403.75

(95,911.00) (12,702.00) (57,629.22)



2012F 2013F 2014F 2015F

(1,025,554.82) 873,382.64 548,502.37 1,134,043.07

8,752,708.48 7,695,394.81 8,172,414.84 7,525,622.70

4,084,909.07 4,697,645.43 5,167,409.97 5,425,780.47 150,227.45 183,277.49 214,434.67 242,311.17

90,136.47 109,966.50 128,660.80 145,386.70

58,261.26 61,333.05 80,662.11 77,423.50

(11,652.25) (12,266.61) (16,132.42) (15,484.70)

(490,189.09) (563,717.45) (620,089.20) (651,093.66)

1,633,963.63 1,879,058.17 2,066,963.99 2,170,312.19

1,633,963.63 1,879,058.17 2,066,963.99 2,170,312.19

5,167,811.03 3,561,755.50 3,636,114.73 2,746,919.61

(558,961.29) 559,415.69 (626,309.25) (156,159.60)

(153,295.63) (268,267.34) (310,423.64) (269,033.82)

(347,567.55) (799,405.36) (935,304.27) (439,939.42)

2,118,181.86 1,711,188.35 2,359,669.73 1,994,301.51

7,727,153.66 8,568,777.45 8,720,917.20 8,659,665.76

(3,267,927.26) (2,450,945.44) (1,879,058.17) (1,033,481.99)

(34,013.76) (132,200.16) (124,628.70) (111,506.03)

(3,301,941.02) (2,583,145.60) (2,003,686.87) (1,144,988.02)

(200,814.70) (261,059.11) (326,323.89) (365,482.75)

468,567.63 609,137.92 761,422.40 852,793.09

(991,731.00) (1,239,663.75) (1,400,820.04) (1,400,820.04)

1,140,490.65 1,425,613.31 1,610,943.04 1,610,943.04

495,865.50 619,831.88 700,410.02 700,410.02

42,014.09 96,245.49 112,947.60 57,259.20

- 178,900.00 178,900.00 178,900.00

954,392.17 1,429,005.74 1,637,479.14 1,634,002.56

(104,048.95) 85,866.27 52,968.12 111,771.37

tion

atement



136,427.46 171,732.54 196,277.81 194,262.59

(129,682.41) (12,266.61) (120,993.17) (126,692.99)

3,282,297.93 4,595,217.10 6,203,543.08 7,382,216.26

(70,768.60) (73,599.66) (72,595.90) (74,608.10)



2009 2010 2011F 2012F 2013F 2014F 2015F

Liquidity Ratio

Current Ratio 1.2665 0.9953 0.9853 0.7391 0.7102 0.6879 0.6830

Quick Ratio 0.9651 0.6907 0.6895 0.5264 0.4875 0.4645 0.4630Cash Ratio 0.5108 0.3529 0.4181 0.3251 0.3545 0.3355 0.3446

Turnover Ratio

Receivable Turnover 6.7343 17.0039 7.3475 8.8754 18.2500 16.2222 16.2222

Payable Turnover 5.5660 11.4042 -2.9329 -2.5345 -4.0687 -1.6987 -3.3203

Inventory Turnover 9.0018 19.6648 -8.3185 -8.1672 -12.7479 -5.2385 -10.2392

Days of Sales Outstanding 54.20 21.47 49.68 41.12 20.00 22.50 22.50

Days of Payable 65.58 32.01 -124.45 -144.02 -89.71 -214.87 -109.93

Days of Inventory in Hand 40.55 18.56 -43.88 -44.69 -28.63 -69.68 -35.65

Cash Conversion Cycle 29.17 8.02 130.25 140.45 81.08 167.69 96.78

Fixed Asset Turnover 1.5126 2.2766 1.6851 1.7915 1.3967 1.3628 1.3289

Total Asset Turnover 1.0170 0.0486 0.8561 0.8195 0.6377 0.5920 0.5621

Profitability Ratio

Gross Profit Margin 0.1278 0.1462 0.1462 0.1462 0.0500 0.0500 0.0500

Operating Profit Margin 0.0504 0.0514 0.0514 0.0514 -0.0361 -0.0361 -0.0388

Net Profit Margin 0.0558 0.0454 0.0454 0.0454 -0.0364 -0.0364 -0.0389

Return on Assets 0.0513 0.2623 -0.0276 -0.0290 0.1217 0.0115 0.0453

Return on Equity 1.8992 0.1099 -0.0741 -0.0356 0.0894 0.0131 0.1016

Return on Total Capital 0.0717 0.0806 -0.0535 -0.0664 0.0474 0.0267 0.0530

EBIT Margin 0.0504 0.0504 0.0514 0.0514 -0.0361 -0.0361 -0.0388

Other Ratios

Tax Burden 19.7813 0.9160 20.1582 20.1582 0.9856 -27.0753 -25.3196Interest Burden 1.0027 0.9657 0.9657 0.9657 1.0224 1.0224 1.0170

Financial Leverage 2.0644 2.1569 2.9206 3.6137 3.7837 4.2796 4.2937

Debt/Asset 0.4905 0.5364 0.5935 0.7084 0.7357 0.7655 0.7671

Debt/Equity 0.9625 1.1569 1.4601 2.4293 2.7837 3.2643 3.2937

Debt/Capital 0.4905 0.5364 0.5935 0.7084 0.7357 0.7655 0.7671

Interest Coverage 8.9689 13.1496 13.1496 13.1496 -7.5830 -7.5830 -7.8891

Fixed Charge coverage 8.9689 13.1496 13.1496 13.1496 -7.5830 -7.5830 -7.8891

Dividend payout 0.0000 0.0000 0.0000 0.0000 0.2048 0.3262 0.1578

Retention Rate 1.0000 1.0000 1.0000 1.0000 0.7952 0.6738 0.8422

Sustainable growth rate 1.8992 0.1099 -0.0741 -0.0356 0.0711 0.0088 0.0856

Financial Statement Analysis

Forecasted Financial Ratios




2009 2010 2011F

ASSETSCurrent assets:

Cash and cash equivalents ₩817,982.00 ₩1,631,009.00 ₩2,038,761.25

Short term financial instruments ₩2,500,000.00 ₩1,503,000.00 ₩2,104,200.00

Trade accounts and notes receivable ₩2,950,245.00 ₩3,000,661.00 ₩2,689,026.49

Inventories ₩1,667,780.00 ₩2,215,217.00 ₩2,317,116.98

Other current assets ₩290,135.00 ₩490,546.00 ₩613,182.50

Total current assets ₩8,226,142.00 ₩8,840,433.00 ₩9,762,287.22

Investments and other non-current assets ₩1,528,446.00 ₩1,661,923.00 ₩2,077,403.75

Property, plant and equipment, net ₩9,596,497.00 ₩12,815,401.00 ₩13,071,709.02

Intangible assets, net ₩352,393.00 ₩539,901.00 ₩566,896.05

Total noncurrent assets ₩11,477,336.00 ₩15,017,225.00 ₩15,716,008.82

Total Assets ₩19,703,478.00 ₩23,857,658.00 ₩25,478,296.04

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt ₩2,003,570.00 ₩2,100,023.00 ₩892,509.78

Trade accounts and notes payable ₩2,031,422.00 ₩2,961,995.00 ₩3,782,467.62

Other payables and accrued liabilities ₩2,460,079.00 ₩3,819,811.00 ₩5,233,141.07

Total current liabilities ₩6,495,071.00 ₩8,881,829.00 ₩9,908,118.46

Long-term debt ₩2,076,160.00 ₩2,542,900.00 ₩3,814,350.00

Other non-current liabilities ₩1,092,498.00 ₩1,371,962.00 ₩1,399,401.24

Total liabilities ₩9,663,729.00 ₩12,796,691.00 ₩15,121,869.70

Common Stock and additional paid-in capital ₩4,040,191.00 ₩4,040,192.00 ₩4,040,192.00

Retained Earnings ₩6,050,562.00 ₩7,031,163.00 ₩6,237,187.28

Other comprehensive income -₩51,003.00 -₩35,298.00 ₩12,177.81

Controlling Interest equity ₩10,039,750.00 ₩11,036,057.00 ₩10,289,557.09

Non-controlling Interest equity -₩1.00 ₩24,910.00 ₩66,869.25

Total shareholders' equity ₩10,039,749.00 ₩11,060,967.00 ₩10,356,426.34

Total liabilities and shareholders' equity ₩19,703,478.00 ₩23,857,658.00 ₩25,478,296.04

L

Fo

Fo



2012F 2013F 2014F 2015F

₩2,405,738.28 ₩3,247,746.67 ₩3,734,908.67 ₩4,332,494.06

₩2,840,670.00 ₩3,914,443.26 ₩4,893,054.08 ₩5,773,803.81

₩3,247,987.78 ₩2,688,572.09 ₩3,314,881.34 ₩3,471,040.94

₩2,664,684.53 ₩3,464,089.89 ₩4,399,394.16 ₩4,839,333.57

₩766,478.13 ₩1,034,745.47 ₩1,345,169.11 ₩1,614,202.93

₩11,925,558.71 ₩14,349,597.38 ₩17,687,407.35 ₩20,030,875.31

₩3,282,297.93 ₩4,595,217.10 ₩6,203,543.08 ₩7,382,216.26

₩16,339,636.28 ₩18,790,581.72 ₩20,669,639.89 ₩21,703,121.88

₩600,909.81 ₩733,109.97 ₩857,738.67 ₩969,244.69

₩20,222,844.01 ₩24,118,908.78 ₩27,730,921.63 ₩30,054,582.84

₩32,148,402.73 ₩38,468,506.16 ₩45,418,328.99 ₩50,085,458.15

₩1,338,764.66 ₩1,740,394.06 ₩2,175,492.58 ₩2,436,551.69

₩5,900,649.48 ₩7,611,837.83 ₩9,971,507.56 ₩11,965,809.07

₩8,896,339.82 ₩10,853,534.58 ₩13,566,918.22 ₩14,923,610.05

₩16,135,753.96 ₩20,205,766.47 ₩25,713,918.36 ₩29,325,970.80

₩4,958,655.00 ₩6,198,318.75 ₩7,004,100.19 ₩7,004,100.19

₩1,679,281.49 ₩1,897,588.08 ₩2,049,395.13 ₩2,090,383.03

₩22,773,690.45 ₩28,301,673.30 ₩34,767,413.67 ₩38,420,454.02

₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00

₩5,211,632.46 ₩5,906,107.10 ₩6,275,701.47 ₩7,230,836.54

₩14,004.48 ₩15,404.93 ₩16,945.42 ₩18,639.96

₩9,265,828.94 ₩9,961,704.03 ₩10,332,838.89 ₩11,289,668.50

₩108,883.34 ₩205,128.83 ₩318,076.43 ₩375,335.63

₩9,374,712.28 ₩10,166,832.86 ₩10,650,915.32 ₩11,665,004.13

₩32,148,402.73 ₩38,468,506.16 ₩45,418,328.99 ₩50,085,458.15

G Display Corporation

recasted Balance Sheet

the years 2012 to 2015

(In Korean Won)



2011 2012 2013 2014 2015

Cash flow from operations 3,194,944.46 7,727,153.66 8,568,777.45 8,720,917.20 8,659,665.76

Interest Expense after tax 93,511.25 116,714.17 11,039.95 108,893.85 114,023.69

Investment in Fixed Capital (256,308.02) (3,267,927.26) (2,450,945.44) (1,879,058.17) (1,033,481.99)

FCFF 3,032,147.69 4,575,940.57 6,128,871.96 6,950,752.88 7,740,207.46

WACC 8.64% 8.57% 8.73% 8.90% 8.90%

growth -7% -4% 7% 1% 9%

Firm Size ₩18,886,517.74 ₩37,721,487.60 ₩377,224,681.51 ₩86,684,027.57 ₩2,279,588,870.95

Free Cashflow to the firm 3,032,147.69 4,575,940.57 6,128,871.96 6,950,752.88 7,740,207.46

Interest Expense after tax (93,511.25) (116,714.17) (11,039.95) (108,893.85) (114,023.69)

Net Borrowing 674,367.46 912,378.08 1,153,860.25 1,345,631.54 1,397,843.36

FCFE 3,613,003.90 5,371,604.49 7,271,692.26 8,187,490.57 9,024,027.13

Equity Value (201,346.10) 412,949.49 1,073,373.51 1,183,390.38 2,019,926.94

Long Term Debt 8.00% 8.00% 8.00% 8.00% 8.00%

LTD issuance 2012 9.00% 9.00% 9.00% 9.00%

LTD issuance 2013 11.00% 11.00% 11.00%

LTD issuance 2014 12.25% 12.25%

Common Stock 10.00% 10.00% 10.00% 10.00% 10.00%

Long Term Debt after tax 7.20% 7.20% 7.20% 7.20% 7.20%

LTD issuance 2012 after tax 8.10% 8.10% 8.10% 8.10%

LTD issuance 2013 after tax 9.90% 9.90% 9.90%

LTD issuance 2014 after tax 11.03% 11.03%

WACC 8.64% 8.57% 8.73% 8.90% 8.90%

Market Value of Equity ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00

Market Value of Debt ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00

Market Value of Debt issuance 2012 ₩1,144,305.00 ₩1,144,305.00 ₩1,144,305.00 ₩1,144,305.00

Market Value of Debt issuance 2013 ₩1,239,663.75 ₩1,239,663.75 ₩1,239,663.75

Market Value of Debt issuance 2014 ₩805,781.44 ₩805,781.44

Total ₩7,854,542.00 ₩8,998,847.00 ₩10,238,510.75 ₩11,044,292.19 ₩11,044,292.19

MV E 51% 45% 39% 37% 37%

MV D 49% 42% 37% 35% 35%

MV D 2012 13% 11% 10% 10%

MV D 2013 12% 11% 11%

MV D 2014 7% 7%

Market Risk Premium 7.20% 7.27% 7.34% 7.42% 7.49%

5 year Treasury Bond 6.00% 6.00% 6.00% 6.00% 6.00%

Beta (LPL) 1.35 1.54 1.3 1.27 1.28

Market Return 13.20% 13.27% 13.34% 13.42% 13.49%

Required Return 15.72% 17.20% 15.55% 15.42% 15.59%

Required Return

Free Cashflow to the Firm Valuation

PRORATION OF DEBT AND EQUITY

WEIGHTED AVERAGE COST OF CAPITAL (WACC)

Effective Tax Rate 10%

Free Cashflow to the Equity Valuation



2011 2012 2013 2014 2015

Sales 21,810,992.64 26,344,789.80 24,533,220.34 26,887,370.87 28,153,998.71

Sales growth 0.8549 1.2079 0.9312 1.0960 1.0471

Share/Share 6.0956 7.3627 6.8564 7.5143 7.8683 EBITDA/share 0.30 0.37 0.69 0.75 0.94

Depreciation/share 0.9043 1.0275 1.2272 1.3785 1.4803

EBIT/share (0.5996) (0.6593) (0.5416) (0.6271) (0.5361)

Total Asset/Share 7.1205 8.9846 10.7509 12.6932 13.9976

Debt-Total Asset 4.2262 6.3646 7.9096 9.7166 10.7375

Interest Expense/share 0.3381 0.5092 0.6328 0.7773 0.8590

EBT/share (0.9377) (1.1685) (1.1744) (1.4044) (1.3951)

Tax rate at 10% (0.0938) (0.1168) (0.1174) (0.1404) (0.1395)

Estimate EPS (1.0314) (1.2853) (1.2918) (1.5448) (1.5346)

Common shares

3,578,157

2011 2012 2013 2014 2015

Current EPS (t-1) -0.97 -1.031424157 -1.285349217 -1.291809718 -1.544846153

Current Stock Price(Won 20050 21319.64365 26568.30083 26701.84005 31932.12925

Current P/E ratio -20670.10309 -20670.10309 -20670.10309 -20670.10309 -20670.10309

Current Stock Price 13.02 21319.64365 26568.30083 26701.84005 31932.12925

Projected EPS -1.031424157 -1.285349217 -1.291809718 -1.544846153 -1.534568457

Projected Stock Price 21,319.64₩ 26,568.30₩ 26,701.84₩ 31,932.13₩ 31,719.69₩


Stock Price Valuation

lg display corporation - investment research (figures)

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