Buy lah!Company executive VP after AGM already said as long as supply is tight and demand is strong the profit margin will be good.Short of standing up to announce loudly that profit and eps is great for 1q18!
calculation for warrant is based on price of 5 days VWAP prior to expiry normally, at this point mother price movement won't have much effect unless there's huge volume transaction above 6.50. Anyway, based on the positive AGM reporting by Mr Kelvin, indeed this will be good to keep for 2018 or even longer.
Too bad for CG holders ... it will expires out of money. Bye bye to your cash .....many have pointed out the risk earlier ...
With continue increase of production plant the output revenue will be exponential increase. This is what we see on Harta on last few years ago. I miss out Harta growth during that period and I will not miss this time. I will not repeat the same mistake twice. Yet we are talking about 13 billion dollar company.
Beside I observed that Lotte chemical group are switching its manufacturing from Korea to South East Asia, which could be due to political or other issues. You can see from its annual growth rate at lotte Chemical Korea compare to LCtitan.
Another point observed from the AGM, they seem confident that price are worth more then 6.50 that is why they will not sell below this. No one knows better than how much the ccmpany really worth.
This is the only company match my investment criteria, 1. Growth ( TE3, PP3 and LCUSA Plant) pipeline up exponential expansion. 2. Marco economic pushing up the demand (TE3 capture the high market demand with ASP price adjust up, demand over supply) 3. Big cap 13 billion 4. Strong Dividend Yield (Better then any FD from Bank)
Ppl y’all left week so ago at 6.4 I don’t blame you. If y’all leave now at 6.4 you guys are making a real big mistake... Qtr report coming on Monday really??
if the share price hits RM7.50 by May, LCT Titan will be in the KLSE Composite Index (competing with Hartalega and Dialog). The advantage to LCT is that its even at RM7.50, the prospective PE will only be around 11 times. The market PE is currenty around 15.6 times. LCT remains largely undervalued.
We all hit by surprises that mgmt does reported Q1 & subsequent in 2018 will be good with no margin % being affected. Those who attend the AGM meeting, mgmt does stated it margin is not affected, but come out Q118 result was bad, unexpected of it.
My wrong on it EPS projection as I read through across all the sites that petrochemical demand is superb shortage & China policy rule. I also hit badly and sadden by this Qtr result out.
Inside the Qtr report, QoQ it mention that revenue is up by RM97mil, due to increase in sales volume up 4.6%, but utilization drop from 86% (Q4'17) to 83% (Q1'18) due to load down in Indonesia plant & lower Msia downstream plant.
PBT decreased RM82.1mil, -21.5% down due to margin squeeze & forex losses. Feedstock price increase, but ASP price picked up on lagging effect. The main key loss is the Forex loss RM44.6mil (huge) but this due to conversion in USD$ for it Louisana plant expansion plant due to RM strengthen. However it gain back of RM34.9mil in operation due to RM strengthen. Some more it pay 18% tax vs last Qtr 6% tax relief, also contributed part of the losses as well.
Theire mgmt do say, petrochemical market will be continue resilient in near term & supply expect to be tighten in Asia region & demand expect to pick up too.
Then again, mngt may come out to argue that "They didnt expect the forex n margin would have such a big impact, but mana tau ..." just like ipo time "didnt expect the water disruption realted shutdown to have such a big impact, but mana tau ..."
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....
ivy88_
61 posts
Posted by ivy88_ > 2018-04-26 14:54 | Report Abuse
Good time to accumulate share when it still low and undervalued for this period of time. :)