April 26, 2024

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[THE INVESTOR] Korea Petrochemical Industry Corp.’s naphtha cracking center will soon resume operations after expansion, said NH Investment and Securities on May 29, maintaining a “buy” recommendation and raising the target price to 400,000 won (US$356.60) from 380,000 won. 

The center’s production capacity will increase to 800,000 tons and will start operations early next month. Referencing LC Titan with similar capacity, KPIC’s corporate value is estimated at 2.6 trillion won, said analyst Hwang Yu-sik.

LC Titan, a subsidiary of Lotte Chemical, is going public in Malaysia in July and its subscription price will be set at 3.8 trillion won cap at the least, about 46 percent higher than its estimated value in Korea, said the analyst. 

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