Lotte Chemical Titan Faces Losses due to Weak Demand


Lotte Chemical Titan Holding, a Malaysia-listed chemical company, experienced a decline in its shares as its losses widened in the second quarter of this year. Weaker demand was cited as the main reason for the fall.

The shares of Lotte Chemical Titan slid by 8% and were recently recorded at 1.16 ringgit, representing a 7.2% decrease. This has resulted in a total loss of 36% over the past 12 months.

In the second quarter, the net loss of Lotte Chemical Titan amounted to MYR313.5 million ($69.3 million), compared to MYR145.9 million in the same period last year. The decline can be attributed to a further decrease in chemical product spreads due to weaker demand and higher operating costs.

The company’s quarterly revenue also experienced a significant drop of 34%, amounting to MYR1.86 billion.

According to analysts from TA Securities, the challenging near-term outlook has led them to revise downward their 2023-2025 earnings forecasts for the company. As a result, Lotte Chemical Titan’s target price has been reduced from MYR0.93 to MYR0.86, while maintaining a sell rating on the stock.

TA analyst Ong Tze Hern highlighted that given the current weak global economic environment and China’s slow reopening, Lotte Chemical Titan may continue to face losses in the second half of the year.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

U.S. Economy Exceeds Expectations in Q2

Next Post

AIB Group Raises 2023 Guidance with Strong First-Half Results

Related Posts