Risk factor
Modest price volatility
Profitability factor
Greatly undervalued vs peers
About
Operating from its headquarters in Ulsan, South Korea, LOTTE Fine Chemical Co., Ltd. produces and distributes a wide array of chemical products domestically. Its extensive portfolio includes various cellulose derivatives, such as MECELLOSE, hydroxyethyl cellulose, AnyCoat-C (hypromellose), and AnyCoat-P (hypromellose phthalate), which are utilized across diverse industries like construction, cement and ceramic manufacturing, coatings, pharmaceuticals, and consumer goods. The company also supplies essential industrial chemicals, including epichlorohydrin, caustic soda, methyl and methylene chloride, chloroform, sodium hypochlorite, methaclean, hydrochloric acid, and PTAC, vital for the architectural, textile, and resin sectors. Furthermore, its product lines extend to general chemicals like EUROX, ammonia, ammonium hydroxide, monomethylamine, dimethylamine, trimethylamine, and trimethylamine-HCl. They are also a key supplier of tetramethyl ammonium hydroxide, a crucial material for semiconductor manufacturing, and specialized polymerized toners designed for color laser printers. The company, established in 1964, was formerly known as SAMSUNG Fine Chemicals Co., Ltd. before it rebranded to LOTTE Fine Chemical Co., Ltd. in 2016.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, trading at
Target Price
The average target price of 004000.KS is 65835 and suggests 40.8% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation t