Report

Lotte Chemical (011170.KS): Smoother road ahead in 2H18

  • -  1Q18 operating profit is likely to miss consensus, due to a stronger KRW and troubles at LC Titan.

  • -  Industry conditions are expected to stabilize from 2H18 as the oversupply burden eases.

  • -  The stock will likely become more attractive given the continually improving propensity to pay

    dividends.

  • -  We adjust up our target price to KRW590,000 and present the company as our sector top pick along

    with LG Chemical (051910.KS, BUY).

Underlying
Lotte Chemical Corp.

Lotte Chemical is engaged in the manufacture of petrochemical products such as synthetic resins, synthetic industrial materials including ethylene glycol and ethylene oxide for making polyester, automobile antifreeze, methyl metha acrylate, benzene, propylene and ethylene.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Dongjin Kang

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