Calmer, But Is It Over Yet?

Volatility has stabilised. Volume & activity have also dropped. Things appear to be ‘calmer’ for Lotte Titan Chemical (recently listed on Bursa Malaysia). We are seeing some sort of support zone at $4.27.

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If you choose to believe that the recent poorer than expected result was due to one-off water disruption,  then the worse may be over.

My Super High Level View On Fair Value

Strictly For Illustrative and Educational Purpose

My personal view – assuming that the incident was a really really one-off impact from the water disruption, plus assuming that this company can achieve a projected annual EPS of RM0.52 (annualised based on 2 quarters) for FY18 and plus this company can trade at a trading P/E of 12 times (vs Petronas Chemicals’s P/E of >15 times), we may be looking at a target price that is higher than its current price of RM4.37.

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One should also be concerned whether there will be further rise in oil price due to geopolitical uncertainty. This may impact on the company’s raw material costs.

DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE STRICTLY FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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