Lotte Chemical to beat Q1 market estimates

[THE INVESTOR] Lotte Chemical’s operating profit in the first quarter will beat market expectations, said Cape Investment and Securities on March 8.

Its operating profit in the first quarter will surge 86 percent on-year to 880 billion won (US$76.48 million), said analyst Lee Ji-yeon. The improved spread of some products and the removal of 75 billion won one-time cost of routine maintenance of its subsidiary will lift the bottom line, she explained.

Although its ethane cracking center in the US will start operating at the end of this year at the earliest, its supply of ethylene will be able to meet the demand, said the analyst.

Lee recommended its stocks as the “most favorable” in the petrochemicals industry saying that its performance is outstanding and the stocks are undervalued.

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