Oil up means its raw mat cost also increase, unless its product PP & PE selling prices are higher than raw mat cost, then only can dream good on its coming QR.
No doubt for now PE & PP is at historical high. What I mean the coming quarter is for past months July-Sep which at that time PE & PP still not high yet, so QR may not so super
LCT mentioned earlier that it is conducting plants turnaround in the 3rd qtr for one of its main cracker and another PE plant. So, this qtr performance should be lower from the previously 2 historic quarters due to the turnaround, which historically means lower production and sales. Also, polymer prices moderated in Jul-Aug while crude oil is rising. So there will be some profit compression also.
Still, LCT should have exceptional full year PAT in 2021 and can expect very good dividend given its historical 50% profit payout compared to the 3sen given for 2020. The yield will be very high too given its share price now, many may not hv realize this. Hopefully the company can also provide some interim dividend along the way to attact more investors.
soon9913. 30 sen net DPS is a likely scenario. At current price, it carries a 11% dividend yield plus with further price appreciation potential is a value buy. A no brainer and super attractive. A matter of time before more buty calls by research houses & foreign investors.
calculated intrinsic value for Lctitan are 6.67 and 7.61 using 2 different methods. lets forget about this so called intrinsic value and set TP at 5...thats like almost 100% upside.
This is a commodity stocks. I wont bother to calculate it's IV. I will just compare it with it's peers with the identical profit margin. It's indeed very undervalued. Besides, it's financial strength is much more superior.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
thesteward
6,780 posts
Posted by thesteward > 2021-10-09 17:15 | Report Abuse
Squat to jump higher?