Monday, April 12, 2021

Lotchem earnings registered  growth of 3.6x YoY

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Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Lotte Chemical Pakistan Limited (LOTCHEM) announced its 1QCY19 financial result on Friday where the company posted a profit after tax (PAT) of PKR 1,286mn (EPS: PKR 0.85), up by 3.6x YoY compared to PKR 355mn (EPS: PKR 0.23) during same period last year. On QoQ basis, earnings are up by 26% QoQ.

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During 1QCY19, net sales witnessed an increase of 30% YoY to PKR 16,123mn, which is majorly owing to a 9% YoY rise in PTA prices and 20% PKR depreciation.

Gross margins of the company are up by 260bps YoY to 11.7% (4QCY18: 10.6% up by 110bps QoQ). The improvement is led by a 20% YoY PKR depreciation, however international PTA margins are down by 8% YoY.

Outlook

Currently the international PTA margins are hovering around USD 160 per ton, which is higher than our long-term assumption of USD 140/ton. Our Dec-19 TP for the stock is 25.3 per share.

 

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Zain Zubair
Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]
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