Lotte Titan Chemical

Lotte Titan Chemical

Postby winston » Wed Jul 12, 2017 6:41 am

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Maybank IB buys 17m Lotte Titan Chemical shares

BY JOSEPH CHIN

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) bought 17.10 million shares of Lotte Titan Chemical Bhd when it made its debut on the Main Market of Bursa Malaysia Securities on Tuesday.

Maybank IB, which is the stabilising manager for the initial public offering (IPO), said it bought the shares at RM6.4718 per share, totalling RM110.67mil.

The shares opened flat at RM6.50 and ended the day down 12 sen to RM6.38.

It was the second most active stock with 45.47 million shares done at prices ranging from RM6.33 to RM6.53.

Lotte Chemical, a producer of olefin and polyolefin and a unit of South Korean multinational ethylene producer Lotte Chemical Corp, is the biggest public offering in the country since 2012.

The purchase by Maybank IB accounted for more than one-third of the shares traded.

Last Friday, Maybank said it may buy up to 27.76 million sharesto stabilise the share price. Based on Monday's purchase, Maybank IB can now only buy another 10.66 million units.

The stabilising action shall be the earlier of the 30 days when the shares start trading or the maximum of 27.76 million shares, which is about 4.8% of the shares offered under the IPO.

Lotte Chemical fixed its institutional price at RM6.50 per IPO share (previously guided at between RM7.60 and RM8 per IPO share) after completing its bookbuilding process.

At this price, it raised about RM4bil from the IPO, RM2bil less than the earlier envisaged total of RM6bil. It will have a market capitalisation of RM15bil.

Lotte Chemical cut the number of share issuance by almost a quarter from the initially planned 740.5 million.

Under the IPO, Lotte Chemical said the 524.21 million shares offered to institutional funds were fully subscribed.

The IPO also included a retail offering of 49.36 million shares for the public and 6.417 million for directors, eligible employees and staff of the subsidiaries, which was also under-subscribed.

As part of its move to ensure the stock price is stabilised, Lotte Chemical said that it would be making a share buyback offer in respect of the IPO shares subscribed by retail investors and non-cornerstone bumiputra investors.

Source: The Star

http://www.thestar.com.my/business/busi ... dZEKxgL.99
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Re: Lotte Titan Chemical

Postby winston » Wed Jun 26, 2019 4:22 pm

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June 18, 2019

Lotte Chemical Titan (TTNP MK)
by Mohshin Aziz

Share Price: MYR3.00
Target Price: MYR3.50
Recommendation: Buy

A year to forget, but valuations are cheap

LCT’s major products — olefins and polyolefin, are brutalised due to U.S. exports distorting the global market.

Naphtha prices have eased in the past month and this will help to ensure positive margin for LCT, but full year net margins are likely to fall nonetheless.

We cut FY19-21E core net profit by 31%, 32% and 4% to reflect the YTD petrochemical prices.

Accordingly, we lower our TP to MYR3.50 (-75sen) after pegging to 5.4x 2019 EV/EBITDA (10% below naphtha based peers). Maintain BUY.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 4699af.pdf
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:00 pm

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Weak 2Q19, but 2H19 looking better

The worst appears over on potentially improving spreads

2Q19 core net profit of MYR89m (-64% YoY, +26% QoQ) was below our expectation.

ASP plunged 12.6%, more than we expected; 1H19 core net profit makes up only 28% of our full-year forecast.

We cut FY19E core net profit by 14.3% to reflect the weak 1H19 ASP, but FY20-21E are unchanged.

We lower our TP to MYR3.18 (-17 sen) as we roll forward to FY20E as our base valuation year and peg valuation to peer average EV/EBITDA of 6.2x (previously 5.4x).

Maintain BUY.

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 7ab2d5.pdf
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:02 pm

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Lotte Chemical Titan said its US-based joint venture company Lotte Chemical USA Corp's ethane cracker and monoethylene glycol plants had started commercial operations in August 2019 on an integrated basis.

Source: The Star

https://www.thestar.com.my/business/bus ... mk27xMa.99
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:05 pm

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Lotte’s US shale gas project now operational

PETALING JAYA: Lotte Chemical Titan Holding Bhd’s 40%-owned shale gas project in the United States began operations last month.

In stock filings with Bursa Malaysia, the petrochemical company said the large-scale petrochemical facility located in Lake Charles, Louisiana, comprised two manufacturing facilities that can produce one million tonnes of ethylene and 700,000 tonnes of mono-ethylene glycol per year.

“The Lotte Chemical USA Corp shale gas project, a 40:60 joint-venture investment project of Lotte Chemical and South Korean-based LOTTE Chemical Corp (LCC), commenced commercial operation in August 2019, ” the company said.

“It will expand the Lotte Group’s global presence and contribute meaningfully to LCC’s global ethylene production capacity which will reach 4.5 million tonnes per year, making it the largest domestic and seventh-largest producer of ethylene in the world, ” it added.

Source: The Star

https://www.thestar.com.my/business/bus ... r7I5Gfg.99
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:05 pm

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Lotte’s US shale gas project now operational

PETALING JAYA: Lotte Chemical Titan Holding Bhd’s 40%-owned shale gas project in the United States began operations last month.

In stock filings with Bursa Malaysia, the petrochemical company said the large-scale petrochemical facility located in Lake Charles, Louisiana, comprised two manufacturing facilities that can produce one million tonnes of ethylene and 700,000 tonnes of mono-ethylene glycol per year.

“The Lotte Chemical USA Corp shale gas project, a 40:60 joint-venture investment project of Lotte Chemical and South Korean-based LOTTE Chemical Corp (LCC), commenced commercial operation in August 2019, ” the company said.

“It will expand the Lotte Group’s global presence and contribute meaningfully to LCC’s global ethylene production capacity which will reach 4.5 million tonnes per year, making it the largest domestic and seventh-largest producer of ethylene in the world, ” it added.

Source: The Star

https://www.thestar.com.my/business/bus ... r7I5Gfg.99
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:08 pm

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Lotte Chemical Titan shares up on disposal move

13 Aug 2019

KUALA LUMPUR: Shares in Lotte Chemical Titan Holdings Bhd rose this morning, after the company announced a plan to sell a 49% stake in Indonesian unit.

The counter fell 5.32%, or 14 sen to RM2.77, making it one of the top gainers on Bursa Malaysia, with 647,000 shares traded.

Lotte Chemical planned to trim its equity stake in PT Lotte Chemical Indonesia (LCI) by selling a 49% stake in the subsidiary to its parent Lotte Chemical Corp (LCC) for US$65.4mil (RM273.49mil) cash.

Lotte Chemical will still hold a 51% stake in the Indonesian unit after the share sale.

The rationales for the proposed divestment are the challenging petrochemical business environment and financial performance, which are causing continuous margin compression of LCT’s profits as well as a decrease in cash flows from operations.

Of the total cash proceeds of RM273.49mil, the bulk of RM251.49mil (91.96%) will be utilised to fund the Integrated Petrochemical Facility Project (IPF) project, while the remaining RM22mil will be used for estimated expenses.

Source: The Star

https://www.thestar.com.my/business/bus ... 2gTHr2Z.99
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:08 pm

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Lotte Chemical Titan shares up on disposal move

13 Aug 2019

KUALA LUMPUR: Shares in Lotte Chemical Titan Holdings Bhd rose this morning, after the company announced a plan to sell a 49% stake in Indonesian unit.

The counter fell 5.32%, or 14 sen to RM2.77, making it one of the top gainers on Bursa Malaysia, with 647,000 shares traded.

Lotte Chemical planned to trim its equity stake in PT Lotte Chemical Indonesia (LCI) by selling a 49% stake in the subsidiary to its parent Lotte Chemical Corp (LCC) for US$65.4mil (RM273.49mil) cash.

Lotte Chemical will still hold a 51% stake in the Indonesian unit after the share sale.

The rationales for the proposed divestment are the challenging petrochemical business environment and financial performance, which are causing continuous margin compression of LCT’s profits as well as a decrease in cash flows from operations.

Of the total cash proceeds of RM273.49mil, the bulk of RM251.49mil (91.96%) will be utilised to fund the Integrated Petrochemical Facility Project (IPF) project, while the remaining RM22mil will be used for estimated expenses.

Source: The Star

https://www.thestar.com.my/business/bus ... 2gTHr2Z.99
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Re: Lotte Titan Chemical

Postby winston » Fri Sep 06, 2019 12:17 pm

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Lotte Chemical Titan posts second-quarter net profit of RM105mil

01 Aug 2019

PETALING JAYA: Lotte Chemical Titan Holding Bhd has posted a net profit of RM104.85mil in the second quarter ended June 30, 2019, which was a sequential improvement from the first quarter due to better overall performance.

In a filing with Bursa Malaysia, the petrochemicals giant said its net profit rose by 88.7% from RM55.83mil in the first quarter ended March 31, 2019, also supported by higher foreign exchange (forex) gains and other non-operating income recorded for the quarter.

Its revenue dipped to RM2.13bil from RM2.17bil quarter-on-quarter, mainly due to slower sales coinciding with the festive season and delayed deliveries.

Earnings per share was at 4.61 sen compared with 2.46 sen previously.

Lotte Chemical Titan said average selling prices for both olefins and polyolefins remained at depressed levels from a year ago, which had compressed profit margins amid softening global economic growth with the ongoing external uncertainties.

“Meanwhile, the reshuffling of global trade flows, which resulted in an increased supply of lower-priced polymers from the US into the Asean region, also continued to weigh on product prices.

“To brace for the challenging environment, the company continued to maximise its operating efficiencies whereby the plant utilisation rate further improved to 89% in the quarter, better than the 87% recorded in the previous quarter and notably higher than 82% a year ago, ” it said.

Lotte Chemical Titan said its strategy was to continuously seek to maximise profits by focusing on better-margin products and emphasising on various plant-optimisation programmes to boost overall efficiency and production.

However, the second quarter 2019 net profit of RM104.85mil was down 66.7% from RM315.02mil a year ago. Its revenue declined by 6.5% to RM2.127bil from RM2.275bil.

It said the lower profit was due to a margin squeeze resulting from a fall in product selling prices.

“The lower selling price is mainly due to the diversion of the polyolefin supply from the US into South-East Asia as a consequence of the US-China trade war, as well as the softening of global economic growth, ” it said.

The company said it was also impacted by higher distribution expenses, lower forex gains by RM38.3mil and a share of loss from associates.

Lotte Chemical Titan said higher distribution expenses arose from an increase in the sales volume, a higher unit distribution cost and an increase in royalty expenses by RM8.9mil.

This was partially offset by higher insurance proceeds received/receivable of RM45.7mil for furnace damage claims as compared to RM31.2mil for gas turbine claims in second-quarter 2018.

Source: The Star

https://www.thestar.com.my/business/bus ... bXTV1kv.99
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Re: Lotte Titan Chemical

Postby winston » Thu Apr 30, 2020 8:19 am

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Lotte Chemical posts 1Q net loss of RM170.06mil

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd recorded a net loss of RM170.06mil for the first quarter of its financial year ended Dec 31, 2020, on the back of a contraction in sales revenue and lower product selling prices.

It said net earnings succumbed to margin compression and higher provision for the write down of inventory to net realisable value, resulting in a negative performance.

For comparison, the group recorded a net profit of RM55.83mil in the previous corresponding quarter.

First-quarter sales revenue came to RM1.46bil, which marked a 33% decline from RM2.17bil in Q1 FY2019, on lower average selling price and sales volume.

The group said this was owing to movement restrictions in the region, which resulted in sluggish demand for its products. It added that the lockdown of major cities in China since January disrupted critical global supply chains and caused severe impact to the global economy.

"The operation of some of the main customers were affected due to the distinctive measures introduced in the region to allow only essential businesses to operate," it said.

Moreover, there was a reduction in production volume owing to major statutory turnaround activities conducted from end-February to early April. The average plant utilisation rate was 66% in Q1 FY2020 as compared to 87% in Q1 FY2019, it said.

On a segmental basis, olefins and derivatives recorded a 43% drop in revenue year-on-year to RM246.8mil, incurring a pre-tax loss of RM130.8mil as compared to a pre-tax profit of RM16.1mil previously.

The polyolefin segment posted a 30% fall in revenue to RM1.22bil from RM1.73bil in Q1 2019. The segment recorded a pre-tax loss of RM127.9mil due to the narrower margins, as compared to a pre-tax profit of RM97.2mil in the previous corresponding quarter.

Lotte president and CEO Lee Dong Woo maintained that the company remains financially resilient with a net cash position of RM4bil as well as RM271mil in generated cash flow from operations in the quarter.

He added that the group is also deemed an essential service and hence continues to supply raw materials to its customers during this period.

"Moving forward, our Company will continue to focus on operational and financial performance optimisation initiatives amid the extremely volatile external environment.

"We will also be undertaking a strategic review on the timing and progress for our Indonesia LINE project in light of the pandemic impact to the global economy," he said.

Source: The Star

https://www.thestar.com.my/business/bus ... l#cxrecs_s
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