April 27, 2024

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[THE INVESTOR] Lotte Fine Chemical will continue to rise as its flagship products remain strong, said Shinhan Investment on Oct. 18, maintaining a “buy” recommendation and raising the target price to 50,000 won (US$44.24) from 48,000 won.

Its third-quarter operating profit will soar 192 percent on-year to 29.2 billion won, estimated analyst Han Sang-won. This is slightly lower than the previous quarter due to the electricity fare rise in summer and scheduled maintenance, but the earnings tendency itself is solid, noted the analyst. 

Caustic soda prices continue to rise while loss from ECH is shrinking, noted Han, forecasting that fourth-quarter operating profit will reach 19.2 billion won, up 17 percent on-year, and operating profit for the whole year will surpass 100 billion won, widely beating market expectations. 

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