Noticed got tax adjustment in qr3 of 66 mil, otherwise PAT around 100 mil, not bad for a qr with plant maintenance. The special divd is a good surprise. LCT said it's a separate from their divd policy, means they will hv another pretty good divd when financial year close.

Higher naphtha price and plant maintenance in Qr3, expected a lower Qr3. But, seem like Qr4 will be better looking at current latest trending prices. Still, anticipating a nice dividend and yield for this year.

LCT mentioned earlier that it is conducting plants turnaround in the 3rd qtr for one of its main cracker and another PE plant. So, this qtr performance should be lower from the previously 2 historic quarters due to the turnaround, which historically means lower production and sales. Also, polymer prices moderated in Jul-Aug while crude oil is rising. So there will be some profit compression also.

Still, LCT should have exceptional full year PAT in 2021 and can expect very good dividend given its historical 50% profit payout compared to the 3sen given for 2020. The yield will be very high too given its share price now, many may not hv realize this. Hopefully the company can also provide some interim dividend along the way to attact more investors.

A good record profit year for VS.. further room for continuous growth seen in 2022
https://www.thestar.com.my/business/business-news/2021/09/24/vs-industry-posts-record-fy21-net-profit-of-rm2453mil

Don't quite understand how Bursa counters move. Recent quarterly results release for some other counters who make 20-30/50-70 mil all made their share prices surge with very lofty valuations.

From the look of it, this company can easily make profit over 1 bil this year and the share price fell. How many other mid-size companies are there in Bursa that can make profits over 1 bil in a year. A strange market.

I believe LCT is seriously undervalued. Now with its net cash of RM4.7 bil and qtr PAT of RM440 mil. Putting aside those large cap banks, telcos and glove companies, how many other smaller cap companies in Bursa that can have such balance sheet and qtr earnings in this range. Not much that I can see.

Goodness, just looked at the balance sheet of LCT. The company has no debt, but also with cash pile of RM 4.7 Billion. Their financial strength undoubtedly still very sound despite the pandemic. Now with this level of Q1 PAT and EPS. Q1 EPS already close to 20 sen. They only made EPS 6.5 sen for whole of 2020.

The qtr where LCT made 378M PAT back in 2017/18 is during the best ever time and the peak for the petrochemical industry previous upcycle. The IPO price was during the peak of the industry cycle with very high product prices.

Am not sure if they can repeat that level of profitability this time. If they really do, who knows what valuation level LCT can fetch.

I would expect this round shouldn't be like the previous quarterly results. Previous 8 quarters in 2019/20 had been ranging between 50-100+ mil. Let's see for tomorrow.

Expecting good ride for LCT this round ahead. If LCT really can achieve 400 mil profit, it will be more than double its full year 2020 PAT, in only one qtr. It may even be highest PAT record ever for LCT since listing also.

BIMB research has recently upgraded LCT target price to RM 3.70 based on improved outlook for petrochemical business in 2021. This is going to benefit LCT a lot. Let's wait for its results and see.

I believe BIMB has released a revised target price report on LCT recently. They revised upward the TP to RM 3.70 based on the improved outlook for petrochemical sector in 2021 which would benefit LCT's business.
https://www.sinchew.com.my/content/content_2463556.html

When is LCT releasing its QR this round?

Given the current pricing for its products, LCTitan should be doing strong this quarter. The polymer prices are at record levels not seen over the last 2-3 years.

Good signs are ahead for LCT

https://www.theedgemarkets.com/article/lotte-chemical-titan-expects-outlook-improve-strong-polymer-product-asps

Don't quite understand how the market reacts to this company. The company is so cash-rich and debt free and so far their business operations are running as usual without much impact from the overall MCO.

Plus, despite crude oil price steadily rising (correlates to their cost), but their polymer ASPs have also been increasing ever since last year, now further rising some more due to short supply following the supply disruption in the US. Their product spread should be very good at current ASP-cost levels. It's very strange the share price continuously trending downwards in this manner.

investingnewbie You may need to read further into their financial statements. LCT reportedly made abt RM 140 mil one-off gain from a disposal in Q4 2019. If we use normalized earnings for comparison, the YoY in Q4 2020 is much higher in fact. (~RM 150 mil v. RM 50 mil)

Great, good QR as expected this round. In fact recall that LCT made one-off disposal gain from its US associate in Q4 2019 which inflated profit in 2019. Hence, normalized YoY earnings for Q4 2020 seem much higher (normalized YoY PAT close to +300% as stated in their announcement)

And this company even further increased to RM 4.2 billion worth of cash equivalents and liquid investments. One solid company to ride through the pandemic period.

Strong showing lately. Should be good QR coming soon. Based on current good market for polymers, Q4 profit can be expected to double that of reported Q3 results. Let's hope well for LCT this round.

The results is good sign for the company, way above my expectation. Net profit 96 mil (qoq +266 mil). Operating profit even better at 119 mil (+310 million qoq). Looked like a huge earnings turnaround for this quarter. Even their operating CF for 1H20 sits at over half a billion ringgit. A cash rich company and expect things will get even better gradually in the coming quarters.

Earnings are now back to Q2 & Q3 2019 levels. So the fundamental share price should reflective of similar period last year levels, around RM3-3.50. Have good faith in this company.

Based on observation, it may be rather difficult for LCT to reach 150-200 millions net profit as similar to past years. Although much improved from the last quarter, their product ASP level is still much lower as compared to 2019.

Last year polymer ASP was above $1000/MT, now the market ASP is hovering just around $750-800/MT. Can expect there would still be some margin compression seen YoY. But there should be gradual improvement in the coming quarters, should there be no sudden spike in crude oil price, which tied to their operating cost.

Q2 results coming tomorrow. From Q1 performance, if LCT can achieve RM50 mil or more net profit for 2nd quarter amid all the pandemic impact on the overall manufacturing industry, it will be a good return to profitability for this company. Another note is to see how it's operating CF for Q2 to indicate it's operational health and performance moving ahead.

Titan's results should be out by month end. Based on market sentiment on the healthy demand for their products during the pandemic and completion of their major plant turnaround in Q1, the results should be much better this quarter from the huge losses in Q1.

Glove companies like TG are also using Titan products to produce disposable PE gloves. With the much higher demand for daily used gloves nowadays, it should be positive for Titan.