April 20, 2024

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[THE INVESTOR] Lotte Chemical’s earnings will improve in the second half, said KB Investment and Securities on June 8, maintaining a “buy” recommendation and 550,000 won (US$513.39) target price. 

Its revenue in the second quarter will rise 11.9 percent on-year to 4.31 trillion won and operating profit by 10.9 percent to 701.3 billion won. Its earnings will gain as raw material naphtha price stabilizes and input share of LPG expands. Its stock price has declined due to strong international oil and naphtha prices, but raw material prices will slightly drop in the third quarter, said analyst Park Yeong-chan.

The chemical industry is showing signs of recovery. Next year, the firm will be able to grow systemically as commercialization of its US ethane cracker and mono ethylene glycol facilities begin, explained the analyst. 

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