[THE INVESTOR] Hanwha Chemical has been undervalued for long, said HI Investment and Securities on Oct. 15 suggesting a “buy” recommendation and 21,000 won (US$18.53) target price.
It is likely to reap solid earnings in petrochemicals sector at least until the fourth quarter this year as China has ceased importing plastic waste while polyester industry thrives. Its current stock price, close to its lowest ever at 0.38 times its price-to-book ratio is quite attractive, said analyst Won Min-seok.
Its stock price reflects concerns about oversupply following oil companies’ large expansion, US-China trade conflicts and struggling new businesses including solar energy. However, when the market begins to recover, probably when the trade conflicts are over, its valuation will garner much attention, underlined the analyst.
By Hwang You-mee (email@example.com)