Risk factor
Good trading liquidity
Profitability factor
Solid dividends
About
Lotte Chemical Corporation, a leading chemical enterprise based in Seoul, South Korea, specializes in the global manufacturing and distribution of a diverse portfolio of polymers, monomers, fundamental petrochemicals, and products designed for emerging market trends. Established in 1976, the company's operations are structured across Monomer, Polymer, Basic Petrochemicals, and an 'Others' division. Its extensive polymer offerings include various grades of polyethylene (such as high-density, low-density, and linear low-density), ethylene-vinyl acetate, and polypropylenes suitable for applications like transparent-impact resistance, injection/blow molding, yarns/fibers, and films. The polymer range further extends to thermoplastic elastomers, adhesive resins, thermoplastic olefins, long fiber reinforced thermoplastics, expanded polypropylenes, polycarbonates, polycarbonate resins, acrylonitrile-butadiene-styrene (ABS) resins, and polyethylene terephthalates. Within its monomer segment, Lotte Chemical supplies ethylene glycols, ethylene oxides, methoxy polyethylene glycols, polyethylene glycols, VPEG (a crucial component for advanced admixtures), glycol ethers, methyl methacrylates, purified isophthalic acids, and purified terephthalic acids. The basic petrochemical division provides benzene, toluene, various xylene isomers (mixed, meta-, para-, and ortho-xylene), as well as isoprene, dicyclopentadiene, piperylene, and styrene monomers. The company also innovates with products like water treatment membranes. Beyond its core chemical activities, Lotte Chemical offers ancillary services including property leasing and labor dispatch. The firm maintains a significant international presence, operating in the Republic of Korea, Malaysia, the United States, Pakistan, China, and other global regions. The company, which was originally founded as Honam Petrochemical Corporation, officially rebranded to Lotte Chemical Corporation in December 2012.
Company Valuation
Considering past and projected metrics, the stock is slightly 'cheaper' than its peers. In particular, the stock is of fair value on EV/EBITDA.
Target Price
The average target price of 011170.KS is 102579 and suggests 35% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to