Lotte Fine Chemical, Continued Expectation for Record High Price Trend

[Asia Economy Reporter Hyungsoo Park] Hana Financial Investment analyzed on the 12th that Lotte Chemical is the biggest beneficiary of the strong prices of coal, natural gas, and grains.

Yoon Jaesung, a researcher at Hana Financial Investment, stated, "We estimate operating profit of 65.9 billion KRW in the third quarter," adding, "This represents a 22% increase compared to the previous quarter, setting a new all-time high once again."

He continued, "We are raising the target price from the previous 100,000 KRW to 110,000 KRW as we revise upward the operating profit and net profit forecasts for this year and next year," explaining, "This reflects expectations of a record-breaking performance centered on core business due to supply issues at Chinese facilities, as well as the concretization of Lotte Group's ammonia-based hydrogen business."

He added, "The current stock price is on the verge of breaking historical highs," emphasizing, "There is a high possibility that the record-high streak will continue through next year."

He analyzed, "The strong prices of coal and natural gas will sustain the strength of key products such as caustic soda and AA/VAM," and stated, "Coal prices recently hit an all-time high due to production cuts caused by China's decarbonization regulations and industrial restructuring, as well as a surge in power demand following the resumption of industrial production in major demand countries China and India."

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