[Featured Stock] Lotte Chemical, Rising on Expectations of Stable Profitability from Green Materials

The stock price of Lotte Fine Chemical is showing strength. Expectations that it can generate stable profitability through green materials and ammonia appear to be influencing the stock price.

As of 10 a.m. on the 22nd, Lotte Fine Chemical is trading at 48,600 KRW, up 3.29% from the previous day.

Yoon Yong-sik, a researcher at Hanwha Investment & Securities, stated, "Lotte Fine Chemical's operating profit is estimated to increase by 54.2% quarter-on-quarter to 26.4 billion KRW in the third quarter," adding, "The ammonia trading will see the disappearance of the lagging effect caused by price increases in the second quarter, and green materials will benefit from reduced initial costs of the Hecellos expansion and yield stabilization that occurred in the second quarter."

He continued, "New demand for ammonia is expected to arise in the future, and as a supplier of 70% of domestic ammonia demand, benefits are anticipated," adding, "Growth focused on green materials and ammonia, which guarantee stable profitability, is even more attractive in the current chemical industry environment where structural margin contraction is expected."