Kiwoom Securities raised its target share price to 117,000 won from the previous 110,000 won on the 7th, predicting that its performance in the third quarter of this year will exceed the market estimate average (Consensus) due to improved product profitability. The investment opinion remained 'buy'.
Kiwoom Securities expects Lotte Fine Chemical's operating profit to reach 67.2 billion won in the third quarter of this year, up 159.6 percent from a year earlier, exceeding the market estimate average of 65.5 billion won.
"This is due to improved performance in all business sectors, including the green material and chemical sectors," Kiwoom Securities said. "The epoxy component (ECH) in the chlorine series was due to the tight supply and demand of the forward epoxy balance, which increased the average spread in the region to $1,354 per ton in the third quarter, up about 35% from the previous quarter.".
Kiwoom Securities said, "The average price of caustic soda in the region increased by more than 20% in the third quarter and ammonia increased by more than 12% compared to the previous quarter," and added, "The green materials sector is expected to increase, including an improvement in the average sales unit price (ASP) converted to the won due to the exchange rate effect.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
