April 23, 2024

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[THE INVESTOR] Isu Chemical’s net profit will improve this year, said NH Investment and Securities on Feb. 7, maintaining a “buy” recommendation and 23,000 won (US$20.22) target price.

Its 2016 fourth-quarter revenue will reach 379 billion won and operating profit will turn to black from the previous year at 10.6 billion won, estimated analyst Jeong Yeon-seung.

“The firm will inevitably suffer a net loss of 17.7 billion won as it will suffer 20 billion won loss from the bankruptcy of Uijeongbu Light Rail, and its chemical division’s profitability will dip temporarily from routine maintenance,” said the analyst. 

However, its profitability will recover from the first quarter, as the price hike is reflected and production normalizes. Its major product linear alkylbenzene is showing improvement in supply and demand due to the lack of expansion in manufacturing facilities, noted Jeong.

By Hwang You-mee (glamazon@heraldcorp.com)