Lotte Titan Chemical

[winston]

Lotte Chemical Titan making a comeback

A series of unfortunate events plagued LCT in 2017 before and after its relisting exercise, including an initial public offering (IPO) hiccup that saw its offer price slashed by one-fifth to RM6.50 from RM8 previously, as well as a sharp fall in earnings due to water supply disruptions at its Pasir Gudang plants.

Since then, its financial performance has been weak, with net profit falling to a low of RM154 million in 2020 against over RM1 billion in 2017.

It posted a net profit of RM440 million for the January-March 2021 period — its best quarterly results since the flotation of its shares on Bursa Malaysia, thanks to the rising polymer-naphtha spread trend.

All eyes are also on its planned RM18 billion Lotte Chemical Indonesia New Ethylene (LINE) project as it would propel LCT to become one of top three petrochemical companies in the region.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... g-comeback

[winston]

not vested

CGS-CIMB upgrades Lotte Chemical Titan, sees hurricane pushing up product prices

by Surin Murugiah

Nnchanged target price (TP) of RM2.92, and said that Hurricane Ida may push up polyethylene (PE) and mono ethylene glycol (MEG) prices.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/583180

[winston]

not vested

Lotte Chemical Titan (TTNP MK) Good news, bad news…

Benefitting in the short term, U/G to HOLD

We believe LCTITAN is poised to be a ST beneficiary of the ongoing ME conflict from a temporary margin uplift due to feedstock procurement timing advantage.

However, it may not have enough naphtha feedstock to operate and may possibly have to halt production or operate its plants suboptimally after May 2026.

We reduce our FY26-27E net loss forecast by 14%/12%.

Our estimates suggest that LCTITAN may see narrowed QoQ losses in 1Q26E and possibly turn profitable in 2Q26E.

We U/G LCTITAN to HOLD with a higher TP of MYR0.35 - pegged to 0.15x FY26E BVPS (from MYR0.21 based on 0.1x FY26E BVPS).

We see a window of trading opportunity for LCTITAN in this near term earnings rebound.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/524205.pdf