[%DnBS%] 
Research by CGS
Reduce – TP of MYR 0.93

“LINE project could widen losses materially” 

1Q24 core net loss was broadly in line with expectations at 23% of our fullyear forecast; this was LCT’s eighth consecutive quarterly loss since 2Q22. Reiterate Reduce as we believe the ongoing weakness in polymer selling prices may extend for some time in light of global production overcapacity. LCT is in a particularly weak position given it is a high-cost naphtha feedstock cost producer; our end-CY24F TP remains at 93 sen (trough P/BV of 0.2x).

Analyst(s):
Raymond YAP, CFA
[%HtsP%]

$KLSE-LCTITAN 
Research by CGS
Reduce – TP of MYR 0.93

“LINE project could widen losses materially” 

1Q24 core net loss was broadly in line with expectations at 23% of our fullyear forecast; this was LCT’s eighth consecutive quarterly loss since 2Q22. Reiterate Reduce as we believe the ongoing weakness in polymer selling prices may extend for some time in light of global production overcapacity. LCT is in a particularly weak position given it is a high-cost naphtha feedstock cost producer; our end-CY24F TP remains at 93 sen (trough P/BV of 0.2x).

Analyst(s):
Raymond YAP, CFA
raymond.yap@cgsi.com

$LCTITAN / 5284 (LOTTE CHEMICAL TITAN HOLDING BERHAD)