[EQUITIES] ‘Lotte Chem to slow down in Q2’
[THE INVESTOR] Lotte Chemical’s second-quarter earnings will be slightly lower than expected, said Hyundai Motor Investment and Securities on July 10, lowering the target price to 480,000 won (US$431.97) from 510,000 won.
Its revenue in the period will come in at 4.6 trillion won with operating profit of 691.4 billion won, missing the market consensus. It was hurt by the US-China trade conflict and weaker price competition of chemical products from weak yuan. Its earnings momentum in the latter half will weaken as oil price rise begins to be fully reflected and Yeosu plant will undergo maintenance, said analyst Kang Dong-jin.
Its mid-10 percent return on equity, over 3 percent dividend rate price-to-book ratio which is the lowest in three years will protect its stock price from declining further, said Kang.
By Hwang You-mee (firstname.lastname@example.org)