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Lotte Chemical office building. (Photo=Lotte Chemical) |
[Alpha Biz= Reporter Kim Minyoung] KB Securities has lowered its target price for Lotte Chemical from ₩155,000 to ₩108,000 due to revised earnings estimates. The firm maintained its 'Buy' rating.
The updated projections for Lotte Chemical are:
2023: Sales expected between ₩21.15 trillion and ₩21.34 trillion; operating profit revised from ₩660 billion to an operating loss of ₩407 billion.
2024: Sales forecast reduced from ₩21.86 trillion to ₩20.97 trillion; operating profit adjusted from ₩8.58 trillion to ₩3.19 trillion.
Lotte Chemical reported a second-quarter 2024 revenue of ₩5.25 trillion and an operating loss of ₩1.11 trillion, marking a third consecutive quarter of losses with a larger deficit compared to the same period last year.
KB Securities noted that while the second-quarter results fell short of market expectations, they anticipate a reduction in losses in the third quarter due to market recovery and base effects. However, challenges such as operational issues at U.S. ethane cracking facilities and higher shipping costs are expected to limit improvements.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
