Posted by kuaTAKtahu > 2017-09-25 11:48 | Report Abuse

LOTTE CHEMICAL TITAN HOLDINGS BHD

By CIMB Research

Add (maintained)

Target Price: RM8.50

LOTTE Chemical Titan Holdings Bhd’s fire accident at its PP3 expansion plant in Pasir Gudang, Johor was reported to be minor, according to CIMB Research.

Plants are operating as usual with no interruptions.

Meanwhile, after the disappointing second quarter 2Q17 results due to the unplanned shutdown because of water shortage and multiple non-recurring items, CIMB Research expects Lotte’s net profit to recover in the third quarter of 2017.

“We project average utilisation rate of 80% in the third quarter of 2017 for Lotte.

“This is higher than the 70% in second quarter due to water shortage and 60% in the first quarter due to the 53-day planned shutdown of naphtha cracker #2 (longer than the planned shutdown of 33 days in 3Q17 for naphtha cracker #1).

In the meantime, CIMB Research has projected Lotte to continue to improve its overall utilisation rate from 80% in the third quarter of 2017 to 90% in the fourth quarter of 2017, bringing the average utilisation rate for FY17 to 75%.

“This is in line with our projection. We believe the third quarter and fourth quarter 2017 earnings will be strong at RM0.2bil-RM0.5bil per quarter, thanks to high margins for HDPE-naphtha, benzene-naphtha and PP-naphtha, which would more than offset the weak BD-naphtha margin,” the house said.

The research firm does not think that the water damage caused by the unplanned water shortage during the second quarter would recur because Lotte plans to expand its water storage capacity from one day currently to two days by the end of fiscal 2018 forecast.

The company has decided to only start plant operations when it is confident that there will be sufficient and consistent water supply.

The stock is trading at only 3.2 times FY17 forecast earnings before interest, tax, depreciation and amortisation, significantly below its regional peers’ average of 8.3 times.

CIMB thinks Lotte remained attractive given the anticipated strong earnings growth recovery post second quarter 2017.

This is driven by utilisation rate improvement that is expected to go on in the third to fourth quarter of 2017.


Read more at http://www.thestar.com.my/business/business-news/2017/09/25/analyst-reports/#ab8QIowPJwUh3lLw.99

Posted by angelol > 2017-09-25 12:04 | Report Abuse

LCT hits by water and fire, not a good sign in fengshui perspective.

Posted by enning22 > 2017-09-25 15:55 | Report Abuse

that can weather water and fire, this is a great stock, from fenhshui perspective.

Posted by proxy888 > 2017-09-25 19:31 | Report Abuse

LOTTE CHEMICAL TITAN HOLDING BERHAD ("Lotte" or "the Company")
Fire Incident Update on the TE3 Project on 20 September 2017 (Pasir Gudang)
Following our announcement on 21 September 2017, the Company wishes to update that we have completed the assessment of the minor fire incident that had occurred at the site of our new TE3 Project.

The fire was due to contact between residual vapor from the Quench Water drain pit and the steam line. The damage caused to the TE3 Project is minimal and we estimate a loss incurred of not more than RM50,000 to replace burnt cables. There is no damage to the other plants and they are running normally.

We have resumed the preparation of the TE3 Project for commissioning and the commercial startup is on target by fourth quarter 2017.

The fire incident is not expected to have a material effect on the earnings, net assets and gearing of the Company and the Group for the financial year ending 31 December 2017.

This announcement is dated 25 September 2017

Posted by kltan > 2017-09-25 20:33 | Report Abuse

Small impact

Posted by Winmore88 > 2017-09-25 21:00 | Report Abuse

tmr rebound

Posted by kuaTAKtahu > 2017-09-25 22:05 | Report Abuse

Titan sink RM 300 mil after the fire report .
vs
Loss less than RM 50k ?

Posted by kahsoon888 > 2017-09-25 22:31 | Report Abuse

Today 5.25 till 5.34 the dropped back to square ..funny

Posted by bravo88 > 2017-09-25 22:35 | Report Abuse

tmr solid rebound

Posted by ivankvs > 2017-09-26 00:34 | Report Abuse

5% up posible ?

Posted by kahsoon888 > 2017-09-26 04:25 | Report Abuse

Hi ivan, nice to meet u here.

Posted by helloworld123 > 2017-09-26 08:53 | Report Abuse

all losses cover by insurance.

Posted by kuaTAKtahu > 2017-09-26 10:04 | Report Abuse

Hi kahsoon888

Posted by Sephy > 2017-09-26 11:58 | Report Abuse

Why the 5.25 level so strong support? Looks like ready to get eaten down.

Posted by Wywy > 2017-09-26 12:17 | Report Abuse

KUALA LUMPUR (Sept 26): Maybank Investment Bank Bhd said Lotte Chemical Titan Holding Bhd shares may track costlier petrochemical, amid crude oil price gains.

In a report today, Maybank analyst Mohshin Aziz said Maybank maintained its ‘Buy’ call on Lotte shares, with an unchanged target price at RM7.85.

At 10:04am, Lotte shares were traded at RM5.27, valuing the company at RM11.93 billion. At 11:04am, the stock changed hands at RM5.26.

Mohshin said: "The focus will resume to the recent surge in crude oil prices and the likelihood for petrochemical prices to track crude oil prices. We believe the share price will react positively, as Lotte is a direct beneficiary of higher petrochemical prices."

Crude oil prices have risen. Reuters reported London Brent crude for November delivery was up 8 cents at US$59.10 a barrel by 0037 GMT. It settled up 3.8% on Monday, after earlier touching a 26-month high.

Global marker Brent hit a two-year high on Monday, helped by output curbs by the Organization of Petroleum Exporting Countries and other major producers, although U.S. crude has lagged behind, amid concerns U.S. production growth could stoke oversupply.

Catch.

Posted by Wywy > 2017-09-26 12:18 | Report Abuse

Sources : The Edge

http://www.theedgemarkets.com/article/maybank-lotte-chemical-titan-may-react-positively-crude-oil-gains

Posted by apolloang > 2017-09-26 14:23 | Report Abuse

I tot oil up bad for lotte

Posted by Junichiro > 2017-09-26 14:29 | Report Abuse

That is what they initially said when Lotte was listed since lotte's raw material input comes most from oil unlike Petronas.
If they compare Lotte with Petronas, they use this to justify higher pricing for Petronas.
Now, suddenly they say the reverse.
Maybe somebody should ask this analyst not to factor in speculation into his report.

Posted by Junichiro > 2017-09-26 14:45 | Report Abuse

If the price of yr raw materials goes up, it is a disadvantage to u rather than an advantage like those glove makers. The reason being that u are unable to pass the entire cost to yr customers.

Posted by Sephy > 2017-09-26 15:18 | Report Abuse

Petrochem market is very different from simple glove market. If market speculate that chem prices will go up, they will stockpile more and drive the prices up themselves due to heightened demand. You dont get this in glove market as the supplier is the one driving the price up. On top of that, the company will book inventory gains as well.

Posted by MoreNMoreMoney > 2017-09-26 16:24 | Report Abuse

http://www.enanyang.my/news/20170926/%E4%B9%90%E5%A4%A9%E5%A4%A7%E8%85%BE%E5%8C%96%E5%AD%A6br-%E7%81%AB%E6%82%A3%E4%B8%8D%E5%BD%B1%E5%93%8D%E5%87%80%E5%88%A9/

Posted by Wywy > 2017-09-26 16:58 | Report Abuse

It should be going somewhere if the US and NK isn't triggering the market sentiment.
Strong support at 5.25.

4.57pm. Operator exchange ticket? 2915500 shares traded one minute.

Posted by kuaTAKtahu > 2017-09-26 18:57 | Report Abuse

Tomorrow up

Posted by gick891214 > 2017-09-26 19:01 | Report Abuse

3 IB come out to motivate investors...

Posted by Jelas Ulung > 2017-09-26 19:17 | Report Abuse

aiks.....

Posted by kahsoon888 > 2017-09-26 19:29 | Report Abuse

Hahaha another square back day....

Posted by kuaTAKtahu > 2017-09-27 09:31 | Report Abuse

. . .

Posted by enning22 > 2017-09-27 10:06 | Report Abuse

LCTT saw is building up the strong base at 5.29/530 level, in the midst of talks about foreign funds making liquidation of stocks in general.

Posted by kuaTAKtahu > 2017-09-27 14:08 | Report Abuse

.

Posted by ESPESP > 2017-09-27 14:44 | Report Abuse

Why is this share not moving?
Operator say good next quarter still cant move to RM6?

Posted by Sephy > 2017-09-27 14:52 | Report Abuse

No one believes in the stock anymore thats why. Always say one thing then something else happen.

Posted by Winmore88 > 2017-09-27 15:23 | Report Abuse

need to wait for Foreign Fund to pushhh

Posted by MoreNMoreMoney > 2017-09-27 16:40 | Report Abuse

haha....what i saw is some ppl collecting.

Posted by newbie1111 > 2017-09-27 16:50 | Report Abuse

so big queue at 5.25, is it fake order to lure ikan billis?

Posted by spy008 > 2017-09-27 17:40 | Report Abuse

but the order at 5.25 does not transact at all....
Maybe is fake one.. lolz

Posted by gick891214 > 2017-09-27 22:49 | Report Abuse

The selling of pp and pe are increased for these few months. The report will be better than last quarter..

Posted by wklee9113 > 2017-09-27 22:59 | Report Abuse

Don't believe Korean style

Posted by MoreNMoreMoney > 2017-09-28 08:55 | Report Abuse

They are not rush to buy...they waiting ppl to sell for them

Posted by kuaTAKtahu > 2017-09-28 11:04 | Report Abuse

haih .. .

Posted by MoreNMoreMoney > 2017-09-28 11:06 | Report Abuse

seem like they change their strategics...haha

Posted by theedge > 2017-09-28 16:14 | Report Abuse

everyday bursa drops. go eat shit la

Posted by apolloang > 2017-09-28 16:16 | Report Abuse

bursa drop but lotte or heng yuan no drop at all

Posted by kuaTAKtahu > 2017-09-28 16:47 | Report Abuse

.

Posted by Winmore88 > 2017-09-28 18:23 | Report Abuse

well support, so whenever market is good, then titan will fly d..

Posted by faizkl > 2017-09-29 11:55 | Report Abuse

Sold all lctitan including it's call warrants.. It isint going anywhere anytime soon, unless it's going down only..

Posted by Wywy > 2017-09-29 14:50 | Report Abuse

very strong operator there, even sapu the buaya i guess. gg.

Posted by enning22 > 2017-09-29 15:48 | Report Abuse

don't be silly , this is SUPER STOCK by next year.

Posted by Winmore88 > 2017-09-29 17:31 | Report Abuse

the price is well supported as you can seeeee...a few days dy

Posted by gick891214 > 2017-09-29 17:34 | Report Abuse

if the result is good end of october, then it will be flying..

Posted by SuperPanda > 2017-09-29 21:59 | Report Abuse

all lct need is just 300m earnings nxt qtr, if u believe can buy now and earn later
i chose to believe based on :
- its higher product price due to us shutdwon
- oil still below 60usd
- many still fear to go in