Posted by royong82 > 2021-06-14 16:00 | Report Abuse

The direct material (Naptha) cost is high, current price is closed to Oct'18. Hope company pile up enough feedstock during low time (March'20 to Nov'20)

If look at latest Qtr report, one of their product line Polyolefin product which contribute significant revenue and profit to latest awesome Qtr report.

The segment recorded an increase in revenue from RM 1,215.0 million in Q1 2020 to RM
1,941.1 million in Q1 2021. This was due to the increase in average product selling price
and sales volume as compared to the corresponding quarter.
Profitability improved by more than four-folds from loss before tax of RM 127.9 million to
profit before tax of RM 418.1 million mainly due to improved margin spread resulting from
higher average product selling price, lower feedstock costs and higher sales volume.

However, the feedstock... guess is Naptha, the price went up 4x from $122 to $619, please find below URL link for the price trend.

https://tradingeconomics.com/commodity/naphtha

The management team should put more effort on how to overcome the headwind to continue deliver same level of profit like last quarter, it is the time to test the management.

Posted by lim900510 > 2021-06-14 19:48 | Report Abuse

aiya, last Q naphtha already at price of 400~500，product selling price still maintaining, coming Q should be sustainable. with EPS of 15sen at least

Posted by Lukesharewalker > 2021-06-14 20:27 | Report Abuse

It's the spread that's important, the fact the selling price is higher could mean its pass to consumers

Posted by Lukesharewalker > 2021-06-14 20:33 | Report Abuse

As confirmed by the packaging sector rise in cost of materials.....

Posted by Lukesharewalker > 2021-06-14 21:13 | Report Abuse

Plastics are derived from byproducts of petroleum refining and natural gas processing. Therefore, when oil prices dip, the price of plastic resin follows. Visa versa

Posted by lim900510 > 2021-06-16 18:28 | Report Abuse

The kanasai ah pek come out then price “lao hong” liao

Posted by titan3322 > 2021-06-17 11:37 | Report Abuse

Just buy lah this FY dividend at least 20 sen where can you find this type of stock in Bursa the yield is even better than gloves stocks and much safer lah

Posted by haha135 > 2021-06-19 06:31 | Report Abuse

dividend should have 25 sen this year.

Posted by Bgt 9963 > 2021-06-19 08:29 |

Post removed.Why?

Posted by Petronas > 2021-06-19 08:36 |

Post removed.Why?

Posted by royong82 > 2021-06-20 21:41 | Report Abuse

the dividend is dropping from 2018 = 23cents to 2020 = 3.27cents....not sure why but it drop >10%.
Unless those expert average price at 1.10, the dividend will will give you 2.8%. If your avg price at >2.00, the dividend only 1.6%...

@ titan3322, I might be wrong, any idea on how dividend estimate to be 20cents?

Posted by ratz > 2021-06-21 11:52 | Report Abuse

royong82. LCT has a 50% payout policy (out of net profits). That’s how it works

Posted by royong82 > 2021-06-21 16:00 | Report Abuse

@ratz thank to pointing up this.

Posted by NEWBIEJIUSHIWO > 2021-06-21 16:41 | Report Abuse

So sad...y keep dropping

Posted by royong82 > 2021-06-21 17:06 | Report Abuse

hope never retrieve below 2.76.

Posted by lordraven018 > 2021-06-21 17:44 | Report Abuse

even with hefty profit, it still dropping.. what the fish

Posted by wallstreetrookie > 2021-06-22 05:01 | Report Abuse

Monday's recovery trade ended Dow Jones's five consecutive days of losses

Posted by titan3322 > 2021-06-23 10:43 | Report Abuse

Enjoy !

Posted by Anyway5890 > 2021-06-23 17:05 | Report Abuse

drop everyday

Posted by bigprice > 2021-06-23 17:08 | Report Abuse

Opputunity to. Accumulate. Next month qr .

Posted by Nepo > 2021-06-23 20:23 | Report Abuse

I will top up next week at RM 2.8x, hopefully can get it

Posted by Anyway5890 > 2021-06-24 12:39 | Report Abuse

continue waterfall

Posted by royong82 > 2021-06-24 14:40 | Report Abuse

hope it will stop at 2.76 and rebound...i will start to accumulate now until 2.76.
See whether will rebound >3.50 in next 1 month bor :)

Posted by Mkttalk > 2021-06-24 14:41 | Report Abuse

Price getting too attractive to ignore !

Posted by lim900510 > 2021-06-25 07:41 | Report Abuse

2.88 buy, huat huat

Posted by Bgt 9963 > 2021-06-25 08:33 |

Post removed.Why?

Posted by Anyway5890 > 2021-06-25 16:55 | Report Abuse

best! keep dropping to rm2

Posted by Bgt 9963 > 2021-06-25 16:59 |

Post removed.Why?

Posted by SandCoffee > 2021-06-25 17:16 | Report Abuse

Sad that this Counter been red for weeks

Posted by SDR245 > 2021-06-25 18:05 | Report Abuse

Rm 2.00 ?? Last qr 400 mil . Next month qr aspected another 400 mil. Above 3.50 b4 next qr announcement.

Posted by titan3322 > 2021-06-25 21:47 | Report Abuse

@SDR245 even next qtr PBT is 250 mil earnings for 2 qtrs = 650 mil giving an EPS of 30 sen even if it earns nothing in the 3rd and 4th qtrs. Let the operators press down the price at the same time we also buy a little for the divedend

Posted by Nepo > 2021-06-26 15:48 | Report Abuse

This stock is like fly or die.

If its bottom is RM 2.7x, congratulations, you buy at bottom.

If it going to fall from high to RM 2, then not bottom yet, but from its recent decent earning announcement couple with good dividend yield (most probably is good due to huge earning), justify to bet and top up..

Posted by lim900510 > 2021-06-26 16:08 | Report Abuse

next qr wont be 400mil. reason, feed price naphtha increased, usd strengthen against RM. expect 250M~300M profits

hopefully can back to 3.5 lvl

Posted by information > 2021-06-26 16:36 | Report Abuse

asp drop 16% and naptha price had risen 15%, difficult to make profit

http://www.sunsirs.com/uk/prodetail-334.html

https://markets.businessinsider.com/commodities/naphthapreis

further, mandatory turnaround coming for 35 days:

https://www.argusmedia.com/en/news/2220041-se-asia-braces-for-heavy-3q-petchem-turnaround-season

Lotte Titan Pasir Gudang, Malaysia No.1 cracker 285 145 5 July, 35 days

Posted by Nepo > 2021-06-26 17:41 | Report Abuse

Good info @ information
Thank you very much

Posted by titan3322 > 2021-06-26 21:27 | Report Abuse

Thank you for all the information if it can earn 200 mil for the remaining qtrs I would still consider it a fantastic stock to hold EPS around 45 sen full year at a price of 2.85. BTW what matters most is the nett spread not just the increase in raw mat that determines its propitability. You can't really find a stock of this profile in bursa and mind you all active stocks are subject to manipulation I am sure you are not new to this

Posted by information > 2021-06-26 21:53 | Report Abuse

last quarter PAT margin of 18% will be easily wiped out by rising raw material price naphtha along with oil price

products are flooded in the market with rising production from china and depressing avg selling price

it will be difficult for LC Titan going forward with such high oil price (unlikely to come down)

Posted by nnara2401 > 2021-06-27 19:49 | Report Abuse

If the market is going to be negative this week, how bad will the impact be on lctitan?? Can i still hold on until rm3.5?

Posted by Anyway5890 > 2021-06-28 09:06 | Report Abuse

well done, continue waterfall, rm2

Posted by SDR245 > 2021-06-29 10:32 | Report Abuse

Petrochemical doing good this year. 3.50 posiable .

Posted by NEWBIEJIUSHIWO > 2021-06-29 15:54 | Report Abuse

WHEN CAN IT GO UP BACK TO RM3.2+++
SO SAD

Posted by FullTimeTroll > 2021-06-29 15:56 | Report Abuse

Naptha price going up continously, might be bad for LCTitan.

Posted by Anyway5890 > 2021-06-30 15:12 | Report Abuse

told ya, rm2 is coming

Posted by rr88 > 2021-06-30 16:52 | Report Abuse

Backside got pain dy? I told u dy.
Now the index has dropped below its 400 day mvg avg (1544). It will follow the index lower from here.

Posted by wallstreetrookie > 2021-07-01 08:16 | Report Abuse

Market makers and IB shorting stocks with heavy retail investor ownership. Buy more

Posted by Bgt 9963 > 2021-07-01 08:33 |

Post removed.Why?

Posted by kc5305 > 2021-07-01 12:20 | Report Abuse

World oil price. Not good news for petro chemical industry

Posted by SandCoffee > 2021-07-01 19:05 | Report Abuse

Revenue - ASP increasing
Cost - Naphtha increasing but CPO Price dropping drastically

Hopefully they can remain good profit as per 1st quarter.

Posted by Jasper_88 > 2021-07-02 09:55 | Report Abuse

why price keeps dropping?

Posted by limpek > 2021-07-02 10:25 | Report Abuse

Management should consider to distribute all their cash to their shareholders since their net cash is currently sitting at RM2 per share.