Corporate Logo(source: lottefinechem.com)
DB Financial Investment has raised its target price for Lotte Fine Chemical (004000) from 47,000 won to 57,000 won, citing expectations of a rebound in earnings during the second half of the year, driven by improvements in the epichlorohydrin (ECH) market. The brokerage maintained its “Buy” rating on the stock.
Han Seung-jae, an analyst at DB Financial Investment, stated, “The United States and Europe have announced favorable anti-dumping and countervailing duties on Korean epoxy products, which is leading to increased exports to these higher-priced markets.” He added, “Lotte Fine Chemical’s average ECH spread, based on propylene as a feedstock, reached 891 dollars per ton in June, nearing the theoretical breakeven point.”
Despite the positive outlook for the second half, second-quarter results are expected to remain weak. The company’s operating profit is projected to come in at 8.5 billion won, representing a 50.4% decline compared to the same period last year.
Han explained, “This decline reflects the costs of a major turnaround conducted for the first time in two years, as well as reduced profits in both the chemical and green materials segments due to a weaker exchange rate.”
*[KOSPI] Lotte Fine Chemical(004000) manufactures specialty chemicals such as ECH, Mecellose, and Anicot. The company is divided into the Chemical Division and the Green Materials Division. Market capitalization is 2.626 trillion won (as of July 1, 2025, closing price).
Corporate Logo(source: lottefinechem.com)
DB Financial Investment has raised its target price for Lotte Fine Chemical (004000) from 47,000 won to 57,000 won, citing expectations of a rebound in earnings during the second half of the year, driven by improvements in the epichlorohydrin (ECH) market. The brokerage maintained its “Buy” rating on the stock.
Han Seung-jae, an analyst at DB Financial Investment, stated, “The United States and Europe have announced favorable anti-dumping and countervailing duties on Korean epoxy products, which is leading to increased exports to these higher-priced markets.” He added, “Lotte Fine Chemical’s average ECH spread, based on propylene as a feedstock, reached 891 dollars per ton in June, nearing the theoretical breakeven point.”
Despite the positive outlook for the second half, second-quarter results are expected to remain weak. The company’s operating profit is projected to come in at 8.5 billion won, representing a 50.4% decline compared to the same period last year.
Han explained, “This decline reflects the costs of a major turnaround conducted for the first time in two years, as well as reduced profits in both the chemical and green materials segments due to a weaker exchange rate.”
*[KOSPI] Lotte Fine Chemical(004000) manufactures specialty chemicals such as ECH, Mecellose, and Anicot. The company is divided into the Chemical Division and the Green Materials Division. Market capitalization is 2.626 trillion won (as of July 1, 2025, closing price).