Lotte Chemical Titan [%qnlE%] 
Research by CGSCIMB
REDUCE(No Change): Target Price: RM1.21

“Remaining cautious despite stronger 2H20F”

9M20 core net loss of RM33m was better than our old full-year loss forecast of RM54m (consensus: profit of RM66m) due to strong 3Q20 price spreads. Strong Chinese peak season demand for plastics and the supply disruptions from the US hurricane season will ensure another strong 4Q20F for LCT. While we lift forecasts and raise our TP to RM1.21 (4x EV/EBITDA on FY22F EBITDA), we reiterate Reduce due to likely industry overcapacity in 2021F.

Raymond YAP, CFA 
T 603 2261 9072 
E [%RulC%]

Lotte Chemical Titan $KLSE-LCTITAN 
Research by CGSCIMB
REDUCE(No Change): Target Price: RM1.21

“Remaining cautious despite stronger 2H20F”

9M20 core net loss of RM33m was better than our old full-year loss forecast of RM54m (consensus: profit of RM66m) due to strong 3Q20 price spreads. Strong Chinese peak season demand for plastics and the supply disruptions from the US hurricane season will ensure another strong 4Q20F for LCT. While we lift forecasts and raise our TP to RM1.21 (4x EV/EBITDA on FY22F EBITDA), we reiterate Reduce due to likely industry overcapacity in 2021F.

Raymond YAP, CFA 
T 603 2261 9072 
E raymond.yap@cgs-cimb.com

$LCTITAN / 5284 (LOTTE CHEMICAL TITAN HOLDING BERHAD)