Earlier this month, someone shared that ASP hit record high in Oct. Profit should be much better in final Q. Omicron reinforced demand for plastic materials.
Development costs ~RM16.6 billion, out of which ~RM3.3 billion will be funded by Lotte Chemical Corp (mother company in Korea), so net impact to Lotte Chemical Titan is ~RM13.3 billion. Based on latest quarterly report, total cash and bank balances and other investments are ~RM5 billion. So after funding the development costs, net debt will become RM8.3billion, net gearing will become 0.61x, which is still okay. Development costs will be paid progressively from 2022 to 2025 and in the meantime, existing business will continue to generate profit (hopefully), which can bring down the gearing.
Experience from MNCs, you can invest in many countries in the world and make money, but definitely not in countries like Korea, Thailand or Australia!!! Coz many of them are dishonest or lazy!!! This is really true!!!
Do not look down on lctitan expansion in indonesia, it is very strategic mah;
1. It will increase its capacity in indonesia & cement its mkt share as a top petrol chemical company indonesia & as well as indonesia. 2. It will lower its cost of production as well as enhancing its ability to sell varied & diversified chemical product. 3. It will definitely gain big market share in view of its close proximity to Asean Mkt mah!
U find alot of comfort that they are holding much more than lctitan share mah!
Posted by UPlanet > Dec 18, 2021 11:11 AM | Report Abuse
Yes. No one doubt about the expansion in Indonesia!!! Just curious how honest they are??? By awarding back the giant project back theirs company(LEC) in Korea, how much money already channel back to their personal pockets??? As the whole world knew, Korean are far dishonest compare to their neighbour Japan, they’re damn corrupted until to the levels of Presidents!!! So, what’s more for these type of private companies??? Lagi Teruk, Right?
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....
Stevenkim
101 posts
Posted by Stevenkim > 2021-11-29 15:46 | Report Abuse
Drop again disappointing counter