[Featured Stock] "Expecting Basic Strength Improvement" Lotte Jeongmil Hwachem Up Over 3%

The stock price of Lotte Fine Chemical, expected to recover its fundamental strength next year, is on the rise. A corporate report from the securities industry also evaluated that "the recent stock price decline was excessive compared to the fundamental strength."

As of 10:27 AM on the 6th, Lotte Fine Chemical was trading at 35,050 KRW, up 1,150 KRW (3.39%) from the previous trading day.

On the same day, Jinmyung Lee, a researcher at Shinhan Investment Corp., said about Lotte Fine Chemical, "The recent financial risk of the group has been highlighted, and the stock price decline was excessive compared to the fundamental strength," maintaining a buy rating.

He forecasted that the operating profit for the fourth quarter of this year would be 24.6 billion KRW, exceeding the market consensus of 21.7 billion KRW. The researcher said, "After posting solid results in the fourth quarter, a recovery of fundamental strength is expected next year. The profit drivers will gradually expand," adding, "Green materials are expected to grow in scale and profit due to high value-added expansion for food and pharmaceuticals and recovery in industrial demand."

He also said, "After the group's liquidity risk was highlighted, the price-to-book ratio (PBR) fell to an all-time low," and added, "Considering the stable financial structure and low possibility of financial support, the potential for further decline is limited." However, due to the recent stock price decline and increased macroeconomic uncertainty, the target price was lowered by 10% from the previous level to 54,000 KRW.