eunsung, the fire is only at the power supply control room? So it is not due to accidents occurring at the chemical manufacturing plant? I cant say anymore, for fear that tomorrow an earthquake swallows up the whole ops in one of their operating countries!
Brother Bravo, dont despair alone, we are standing there with you. There is still a chance that we can get out of this mess without experiencing due losses. keep communicating with this group here. I think all here have one common purpose now: We wanna see the LCT report card b4 making decisions.
Based on the sentiment on this share, those who is buying structured warrant will hardly gain.
My current view is that this share need another few mths (hope for the best but plan for the worst)... by the time mother share is going up (if managed to) , structured warrant might not be moving/going down due to current high premium.
KUCHING: Malaysia’s petrochemicals industry is expected to record a decent third quarter (3Q) due to the current favourable demand-supply dynamics and undemanding valuations, analysts observed.
In a report, the research arm of Maybank Investment Bank Bhd (Maybank IB Research) believed that both Petronas Chemicals Group Bhd (PChem) and Lotte Chemical Titan Holding Bhd’s (LCT) 3Q17 results would be in-line with market’s expectations with an upward bias.
“Key point is both managed to turnaround their facilities within stipulated plan and average selling prices (ASP) have crept up higher due to the global production disruption.
“We are positive on the sector on favourable demand-supply dynamics and undemanding valuations,” the research house said.
It explained that PChem had a major turnaround for its Ammonia and Kertih plants in 3Q17 while LCT’s Naphtha Cracker #1 (NC1) underwent a turnaround in 3Q17 which took 33 days. LCT management stated that it went live on August 11 and it has ramped up smoothly with no issues.
“It is important to note that these maintenance shutdowns by PChem and LCT are well publicised to the market,” it pointed out.
Maybank IB Research also highlighted that petrochemical prices had a positive boost from the Tropical Storm Harvey that inflicted the US Gulf area in early September 2017.
“Many of the US petrochemical facilities were damaged and are not yet fully operational till today.
“This had disrupted petrochemical supply and lifted prices higher. In addition, global PMI has been in strong growth territory in 2017 which underpins a sturdy demand for petrochemical products,” it added.
Overall, the research house pegged a positive view on Malaysia’s petrochemical sector on strong industry demand and healthy product margin spreads
“Both PChem and LCT are trading at undemanding valuations and both have solid net cash balance sheet,” it said, noting that it favoured LCT as it is the cheapest Asean based petrochemical group and offers the best upside to our target price
PETALING JAYA: Maybank IB Research expects an improvement in Lotte Chemical Titan Holding Bhd’s upcoming financial results for the third quarter ended Sept 30, 2017 (3Q17).
According to the research house, Lotte Chemical’s 3Q17 results look promising on the back of strong average selling price of its petrochemical products, smooth resumption of its NC1 plant’s production and higher plant utilisation rates.
Maybank IB Research reiterated its “buy” call on the company, with an unchanged target price of RM7.85.
“Things are reverting to normal for Lotte Chemical and the 3Q17 results should be in line with market expectations.
“However, the third quarter will have some one-offs relating to its listing expenses and the total return equity swap of its listed Indonesian unit. Excluding these items, we forecast that the underlying performance will be positive,” it said in a note.
Lotte Chemical recorded a significant fall in both its 2Q17 revenue and net profit, that was caused by a scheduled plant turnaround and a water supply cut that disrupted operations of its plants in Johor.
As a result, the counter fell by nearly 23% to RM4.70 on the same day of the company’s financial results announcement.
Lotte Chemical, which made its debut on the Main Market of Bursa Malaysia in July, saw its net profit in 2Q17 drop by nearly 72% year-on-year (y-o-y) to RM113.62mil. The petrochemical manufacturer’s top line also narrowed by 11% y-o-y in the quarter.
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Maybank IB Research said Lotte Chemical’s recovering production volume may act as a boost to the company’s earnings.
“The management says that production volumes have gradually recovered from the low levels in 2Q17. The NC1 plant’s turnaround process was completed as planned and the ramp-up process was smooth.
“In total, NC1 was offline for 33 days only and we forecast plant utilisation rates to hover between 74% and 78%. We forecast that product margins in 3Q17 to be at RM994 per tonne, which is 10.7% lower y-o-y and 6.5% lower quarter-on-quarter,” said the research house.
With regard to a series of incidents in its TE3 project, Maybank IB Research did not foresee any impact on Lotte Chemical’s financials in the third quarter.
On Oct 1, the TE3 project site received a stop-work order from the Department of Environment following odour emission and surface oil sheen discharge from its project site into a waste water treatment plant.
The TE3 project refers to Lotte Chemical’s KBR catalytic olefins technology catalytic cracking reactor that will be attached to an existing second naphtha cracker plant in Pasir Gudang, Johor.
“The management is confident it will be able to commission TE3 by 4Q17 as per the original targets and all incidents in TE3 are minor hiccups to its overall progress.
“TE3 should not impact Lotte Chemical’s 3Q17 financials as capital expenditure and incidential costs should be capitalised till ready,” said Maybank IB Research.
At the close of trading yesterday, Lotte Chemical was up by 1.4% to RM5.25. A total of 818,800 shares changed hands.
“However, the third quarter will have some one-offs relating to its listing expenses and the total return equity swap of its listed Indonesian unit. Excluding these items, we forecast that the underlying performance will be positive,” it said in a note.
Hmmm... got one - off listing expenses.... TRES.... mayb the profit will not be good-looking..
I loathe this type of public stunt trying to beg for people: Oh please dont throw while I am moving up. This bloody F...king IB now become beggars. Too much of a publicity becomes cheap publicity, and becomes shit. As a contrarian, I get cheesed off when it is an over-driven campaign to be hyped. I get this feeling that the report will be out next week, between wed and friday. Oh shit!.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kentwoon
1,841 posts
Posted by kentwoon > 2017-10-24 15:00 | Report Abuse
Yes , all in why so takut