Lotte Chemical to post earnings surprise in Q4

[THE INVESTOR] Lotte Chemical will beat market expectations in the fourth quarter with operating profit of 612.9 billion won (US$526.77 million), said Dongbu Securities on Dec. 13.

The securities firm maintained its 470,000 won target price saying that the chemical company will post strong earnings despite the low season bolstered by the rise in exchange rate, said analyst Han Seung-jae.

“The chemicals market condition will further improve, and its earnings surprise will continue into next year,” said the analyst.

“Lotte Chemical has expanded investments with remarkable ability to generate cash, and it will also gain from Hyundai Chemical, a joint venture with Hyundai Oil Bank, that has begun full operations in November.”

By Hwang You-mee (glamazon@heraldcorp.com)