Lower tax and higher non-operating income helped Lotte Chemical Titan Holding Bhd (LCT) record a 30% improvement in net profit to RM378.15 million in its fourth quarter ended Dec 31, 2017 (4QFY17), from RM290.86 million a year ago.
Quarterly revenue declined by a marginal 1.4% to RM2.12 billion from RM2.15 billion in 4QFY16, primarily due to reduced plant load at its Indonesia polyethylene plant and decrease in sales volume of by-product. Average plant utilisation stood at 86% in the quarter under review against 90% in 4QFY16.
Next Financial Year Of LCTITAN - coming Qr. 受看好(这部分/平均售价会缓解。)
LCTITAN expected production output in 2018 to be normalised in view of no major planned plant shut down. Barring any unforeseen circumstances, our board expects our performance for FY18 to remain positive!
Increased by RM137 mil, where a) Operational: RM 110mil increment due to improved plants utilization rate & operating efficiency b) Non operational: RM 27mil
So, barring any unforeseen circumstances, LCTitan PBT shall be above RM300mil++ for next few quarters..
*Though feedstock price is increasing, polyolefin prices also increasing, on a lagging basis.
Extraordinary result with satisfy dividend. Looking for better 2018 financial year result where increase in utilization rate, product selling price and favorable foreign exchange rate.
Do not underestimate Lctitan coming Q118 result. Lctitan mgmt continue to improve its overall utilisation rate from 77% (3Q17) to 86% (4Q17) to expected normalize 92% (1Q18). This will further boost it earning from current net profit RM0.378bil (4Q17) to ~RM0.5bil+ (1Q18). With payout dividend of 23sen, mean Lctitan mgmt does honour their promises of 50% dividend payout vs profit earning.
Coming new TE3 plant already started operation on 16th Dec 2017, will boost another 30% output on 1Q18. Additional to that, coming PP3 plant by 2nd half 2018 will further enhance it growth. This is an undervalued stock, good efficiency company & with keep on growing momentum in 2018. Plus, high dividend 50% payout company & zero debt companies with RM3.6Bil cash & assets.
This Lctitan can shoot up beyond RM8.00 (new TP), if calculate based on EV/EBITDA share price 5.50 still cheaper by only 5.5x FY18F, 28% discount to PChem target 7.6x.
As I said many times in here buy when cheap I sapu near lowest now untung a lot I said already this one sure up Confirm up I sure will limit up All the best
With the backdrop of the spectacular 4q17 results with eps 16sen,the 1q18 with full 3 months contribution from TE3 plant and utilization rate of up to 92% the eps could touch 20sen.By 3q18 when PP3 plant starts to contribute to the top and bottom line can expect eps btw 22-25sen. So by oct-dec 2018,we may see Lctitan at rm9-10.Need to keep our fingers crossed and hope for the best and no more untoward incident.
Max it can made 600 over millions minimum 100 over millions per quarter.Hopefully it can made over 400 million for 1Q 2018.TE 3 is done.Its should help to increase profit
Oil price starts to crash down. Hope Naphtha price will crash down too, then Lotte Chemical Titan can get lower naphtha price feedstock. Plus higher product selling price now compared to 3 months ago, hope there will be 1 off windfall for its future profits, which is good for its share price.
US market is also crashing down hard now. Lotte should have 1 more opportunity to buy lower than RM5.36 when investors are selling due to panic selling....when investors are losing money in other counters, they will sell Lotte Chemical Titan to cover their losses in other share counters.
for glotus: 1. Long term investors, like Warren Buffet make more money than short term investors. 2. Day traders who trade too often lose money due to transaction costs. 3. Financial and technical analysts always can make money, but they can make more money if they look at the company’s business and its profit growth potential. 4. To be able to make money from the stock market, you must outsmart the losers. 5. The movement of any share is due to the number of the buyers or sellers. If there are more buyers than sellers the price will go up but if there are more sellers than buyers, the price will come down. 6. If you have been losing money, you must change your investment method. If you continue to lose money, you must stop investing because your brain is not wired for share investment. 7. You must develop the ability to control your emotion of fear and greed to maximise your profit.
1) many retail long term investors cannot make money due to bad timing....if you invest in Oil and gas counters 10 years ago, right now you are still losing money. Warren Buffet claimed that he is long term investor he earns a lot of money, but he has advantages over many of us which he will never reveal to us how being long term investors can earn money. The key words are- he has many advances over us which we don't have. Therefore trying to buy and hold as long term investors do not guarantee good long term return. Please take note of that.
2) none of us can be day traders. It is too difficult to be day traders. This is also out of questions. Day traders end up retiring from market, so in the end no more day traders.
3) nobody can look at business and understand it, and profit growth potential only the company directors know so we don't know. So in the end we rely on financial and technical analysis. This is only what we have.
5) NOT due to more BUYERs than SELLERS when price goes up. In fact, only small number of buyers to make share price goes up. These are hugh fund managers. 3 people can push up price from 10000 sellers from retail investors.
7) how do human beings control fear and greed without knowing what is going on? Only when you are smart big investor then only you know when to control greed when to control emotion. Testing like a Zen Master right?
Be careful when we read all these articles from people like Warren Buffet and KYY. They are here to teach us how to lose money to them, then they say we don't follow their 7 rules, all our fault.
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....
stockintalk
854 posts
Posted by stockintalk > 2018-01-30 14:56 | Report Abuse
LimIT high today probably.