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LCTI

Lotte Chemical Titan Holding Berhad KLSE:LCTITAN Stock Report

Last Price

RM1.97

Market Cap

RM4.4b

7D

3.1%

1Y

-29.4%

Updated

30 Jun, 2022

Data

Company Financials +
LCTITAN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends3/6

LCTITAN Stock Overview

Lotte Chemical Titan Holding Berhad, an investment holding company, engages in manufacture and sale of petrochemical products and polyolefin resins in Malaysia and internationally.

Lotte Chemical Titan Holding Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lotte Chemical Titan Holding Berhad
Historical stock prices
Current Share PriceRM1.97
52 Week HighRM2.96
52 Week LowRM1.90
Beta1.33
1 Month Change-3.90%
3 Month Change-13.22%
1 Year Change-29.39%
3 Year Change-32.77%
5 Year Changen/a
Change since IPO-69.12%

Recent News & Updates

Shareholder Returns

LCTITANMY ChemicalsMY Market
7D3.1%-1.8%1.2%
1Y-29.4%7.6%-6.5%

Return vs Industry: LCTITAN underperformed the MY Chemicals industry which returned 7.6% over the past year.

Return vs Market: LCTITAN underperformed the MY Market which returned -6.5% over the past year.

Price Volatility

Is LCTITAN's price volatile compared to industry and market?
LCTITAN volatility
LCTITAN Average Weekly Movement3.0%
Chemicals Industry Average Movement5.3%
Market Average Movement5.5%
10% most volatile stocks in MY Market11.5%
10% least volatile stocks in MY Market2.8%

Stable Share Price: LCTITAN is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LCTITAN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19911,503Hyun Parkhttps://www.lottechem.my

Lotte Chemical Titan Holding Berhad, an investment holding company, engages in manufacture and sale of petrochemical products and polyolefin resins in Malaysia and internationally. It offers high-density polyethylene used to manufacture grocery, merchandise, and trash bags; food containers; bottle caps and closures; liners for cereal and cracker boxes; plastic drink cups; dairy crates; bread trays; pails; safety equipment; house wraps for insulation; bottles for household and industrial chemicals; milk and juice bottles; and large tanks for storing agricultural and lawn care chemicals. The company also provides low-density polyethylene used to manufacture food packaging films; plastic bottles for packaging food and personal care items; dry cleaning bags; ice bags; pallet shrink wraps; heavy-duty bags for mulch and potting soil; boil-in-bag bags; coatings on flexible packaging products; and coatings on paper board.

Lotte Chemical Titan Holding Berhad Fundamentals Summary

How do Lotte Chemical Titan Holding Berhad's earnings and revenue compare to its market cap?
LCTITAN fundamental statistics
Market CapRM4.40b
Earnings (TTM)RM704.02m
Revenue (TTM)RM10.22b

6.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LCTITAN income statement (TTM)
RevenueRM10.22b
Cost of RevenueRM9.39b
Gross ProfitRM836.39m
Other ExpensesRM132.37m
EarningsRM704.02m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin8.18%
Net Profit Margin6.89%
Debt/Equity Ratio0%

How did LCTITAN perform over the long term?

See historical performance and comparison

Dividends

10.7%

Current Dividend Yield

68%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LCTITAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LCTITAN?

Other financial metrics that can be useful for relative valuation.

LCTITAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA1.5x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does LCTITAN's PE Ratio compare to its peers?

LCTITAN PE Ratio vs Peers
The above table shows the PE ratio for LCTITAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.5x
SCIENTX Scientex Berhad
12.6x18.0%RM5.3b
BKAWAN Batu Kawan Berhad
6.8xn/aRM9.1b
SAB Southern Acids (M) Berhad
5.4xn/aRM508.0m
RGTBHD RGT Berhad
60.4xn/aRM335.8m
LCTITAN Lotte Chemical Titan Holding Berhad
6.4x5.9%RM4.4b

Price-To-Earnings vs Peers: LCTITAN is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (21.5x).


Price to Earnings Ratio vs Industry

How does LCTITAN's PE Ratio compare vs other companies in the Asian Chemicals Industry?

Price-To-Earnings vs Industry: LCTITAN is good value based on its Price-To-Earnings Ratio (6.4x) compared to the MY Chemicals industry average (12.4x)


Price to Earnings Ratio vs Fair Ratio

What is LCTITAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LCTITAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: LCTITAN is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

What is the Fair Price of LCTITAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LCTITAN (MYR1.97) is trading above our estimate of fair value (MYR0.77)

Significantly Below Fair Value: LCTITAN is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: LCTITAN is poor value based on its PEG Ratio (1.1x)


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Future Growth

How is Lotte Chemical Titan Holding Berhad forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCTITAN's forecast earnings growth (5.9% per year) is above the savings rate (3.6%).

Earnings vs Market: LCTITAN's earnings (5.9% per year) are forecast to grow slower than the MY market (9.9% per year).

High Growth Earnings: LCTITAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LCTITAN's revenue is expected to decline over the next 3 years (-5.3% per year).

High Growth Revenue: LCTITAN's revenue is forecast to decline over the next 3 years (-5.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LCTITAN's Return on Equity is forecast to be low in 3 years time (2.5%).


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Past Performance

How has Lotte Chemical Titan Holding Berhad performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LCTITAN has high quality earnings.

Growing Profit Margin: LCTITAN's current net profit margins (6.9%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: LCTITAN's earnings have declined by 13.8% per year over the past 5 years.

Accelerating Growth: LCTITAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LCTITAN had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Chemicals industry average (15.6%).


Return on Equity

High ROE: LCTITAN's Return on Equity (5.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Lotte Chemical Titan Holding Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LCTITAN's short term assets (MYR7.0B) exceed its short term liabilities (MYR1.7B).

Long Term Liabilities: LCTITAN's short term assets (MYR7.0B) exceed its long term liabilities (MYR1.1B).


Debt to Equity History and Analysis

Debt Level: LCTITAN is debt free.

Reducing Debt: LCTITAN has no debt compared to 5 years ago when its debt to equity ratio was 1.2%.

Debt Coverage: LCTITAN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LCTITAN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Lotte Chemical Titan Holding Berhad current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


10.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LCTITAN's dividend (10.66%) is higher than the bottom 25% of dividend payers in the MY market (2.08%).

High Dividend: LCTITAN's dividend (10.66%) is in the top 25% of dividend payers in the MY market (4.94%)


Stability and Growth of Payments

Stable Dividend: LCTITAN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LCTITAN has only been paying a dividend for 4 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.9%), LCTITAN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: LCTITAN is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Hyun Park (55 yo)

1.42yrs

Tenure

RM2,782,185

Compensation

Mr. Hyun Chul Park serves as the Chief Executive Officer, President & Director of Lotte Chemical Titan Holding Berhad since January 1, 2021. He serves as President Commissioner at PT Lotte Chemical Titan T...


CEO Compensation Analysis

Compensation vs Market: Hyun's total compensation ($USD632.19K) is above average for companies of similar size in the MY market ($USD443.60K).

Compensation vs Earnings: Insufficient data to compare Hyun's compensation with company performance.


Leadership Team

Experienced Management: LCTITAN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: LCTITAN's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lotte Chemical Titan Holding Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Lotte Chemical Titan Holding Berhad
  • Ticker: LCTITAN
  • Exchange: KLSE
  • Founded: 1991
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: RM4.396b
  • Shares outstanding: 2.28b
  • Website: https://www.lottechem.my

Number of Employees


Location

  • Lotte Chemical Titan Holding Berhad
  • Bangunan Malaysian Re
  • 6th Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50490
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.