[Infostock Daily=Reporter Lee Dong-hoon] KB Securities maintained an investment opinion of 'Buy' for Lotte Chemical and target price of 504,000 won.
KB Securities analyzed, "As of March 3, Ethylene prices (based on exports to Korea) stood at $1,090 per ton, up 6.9% from the previous week. Prices of HDPE (based on imports from China) and PP (based on imports from China) were also $1,200 and $1,230, up 2.6% and 2.5%, respectively. Not only has a drop in offshore inflow due to the U.S. cold wave in February led to a rise in prices, but China's demand for inventory security is also estimated to be an important factor in the rise in prices."
It is believed that demand for chemical products in the first half of the year has clearly increased due to increased IT and automobile production. The securities firm forecasted, "Due to strong prices in February and March, Lotte Chemical's first-quarter earnings are likely to improve. Some investors are concerned about oversupply of the chemical industry in 2021. However, concerns over oversupply are groundless, which is a good opportunity for stock investment."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
