Bimb Research Highlights

Author: kltrader   |   Latest post: Thu, 7 Jan 2021, 6:24 PM


Lotte Titan - 3QFY20 - Results Review

Author:   |    Publish date:

  • Overview. LC Titan net profit declined 11% qoq and 14% yoy to RM79m due to larger loss from associate company which was affected by Hurricane Laura in the US. However, excluding non-core items of unrealised FX loss of RM30m, core profit grew by 13% yoy and >100% to RM101m. Notably, EBITDA grew by 36% qoq and 25% yoy to RM301m as product spread widened due to low oil prices and rising polymer prices.
  • Key highlights. Revenue rose 23% qoq to RM1.94bn on the back of higher ASP by 14% to RM3,500/mt (2Q20: RM3,050/mt) supported by 8% increase in sales volume to 560k MT. Its 3Q20 plant utilization (PU) grew to 90% (1H20: 76%) bringing 9M20 PU of 81%.
  • Against estimates: Inline. 9M20 core profit of RM12.4m made up 11% and 13% of our and consensus’ forecast. We deem this as within our forecast in expectation of another strong quarter in 4Q20.
  • Outlook. Despite a rebound in product spread due to low oil price (see Chart 1), we think overcapacity concern in the polymer market still persist particularly as China looks to become self-sufficient and reducing imports. This could continue to weigh on product prices and limit further expansion in product spread.
  • Our call. Maintain our HOLD call on the stock with unchanged TP RM2.00. Our valuation is based on the GGM methodology.

Source: BIMB Securities Research - 30 Oct 2020

Share this

Related Stocks

Chart Stock Name Last Change Volume 
LCTITAN 2.85 -0.01 (0.35%) 5,868,800 

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Perform Technical & Fundamental Analysis on Stocks
MQ Affiliate
Earn rewards by referring your friends

457  490  616  543 

Top 10 Active Counters
 PRG 0.285+0.055 
 PNEPCB 0.42-0.08 
 XOX 0.105-0.005 
 AT 0.185+0.01 
 SEALINK 0.18+0.015 
 GPA 0.125+0.015 
 IRIS 0.405-0.01 
 JCY 0.515-0.07 
 MTRONIC 0.105+0.005 
 ASIAPLY 0.30+0.03 


1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!