Lotte Chemical Titan Holding shares fell Tuesday morning after the company reported another quarterly loss.
Shares in the Malaysia-listed chemical company slid as much as 12% and were recently 9.6% lower at 1.32 ringgit, bringing 12-month losses to 17%.
Lotte Chemical Titan posted a net loss of MYR186.5 million ($39.4 million) for the fourth quarter, compared with net loss of MYR333.6 million a year earlier, according to a late Monday filing. The company said the narrower loss was due to lower feedstock costs and foreign-exchange gains.
Quarterly revenue fell 10% to MYR1.86 billion on lower sales volumes amid a global economic slowdown.
This year will likely remain a tough one for Lotte Chemical Titan, given the soft macro climate for downstream petrochemical products and higher naphtha costs caused by rising crude oil price environment, Maybank Investment Bank analyst Jeremie Yap said in a note.
Maybank raised its target on the stock to MYR0.95 from MYR0.83 following the company’s narrower loss, but maintained a sell rating.
BIMB Securities analyst Azim Faris Ab Rahim thinks the company’s share price already reflects weak demand expectations amid intense competition in an oversupplied market. He remained positive on Lotte Chemical Titan’s long-term outlook, supported by an expansion project in Indonesia and its strong financial condition.
BIMB Securities kept its hold rating on Lotte Chemical Titan and target price unchanged at MYR1.39.
