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Process Industries

Lotte Chemical Corp.

  • 347,500.00 KRW
  • +7,500.00
  • +2.21%
  • South Korea
    Aug 14, 2018
  • Ticker
    KRX(011170)
  • Prev. close
    340,000
  • Market cap (KRW)
    11,653.64B
  • Market cap (USD)
    10,331.70M
  • Shares
    34.27M

Company Background

Lotte Chemical is a core unit of Lotte group, the fifth-largest conglomerate in South Korea.

In terms of sales, Lotte Chemical ranks behind only LG Chem in the domestic chemical industry. It is one of the world's largest producers of chemical products such as polyethylene and ethylene.

Lotte Chemical began as Honam Petrochemical, which was established in 1976 through technological collaboration between companies including Japan's Mitsui group. Lotte group acquired the business in 1979. Honam became Lotte Chemical in 2012, when its management was integrated with Kp Chemical.

In South Korea, Lotte Chemical has the world's biggest ethylene capacity. Its plants in Yeosu, South Jeolla Province, and Seosan, South Chungcheong Province, each have 1 million-ton production systems.

The company is also expanding its international presence.

In 2018, it plans to open a joint plant with U.S. company Axiall in the state of Louisiana. The facility is to produce ethylene from shale gas. This stands to boost Lotte Chemical's ethylene capacity to 3.7 million tons.

In 2010, the South Korean company acquired Malaysia's Titan Chemicals, now called Lotte Chemical Titan Holding.

Seeking to reduce its heavy reliance on commodity chemicals, Lotte Chemical intends to reinforce its water treatment business. In addition, it has research-and-development programs focused on large-scale battery products, such as energy storage systems.

Business Summary

Lotte Chemical Corp. is engaged in the manufacture of petrochemicals. It operates through the following businesses: Resin products, Basic petrochemicals and Chemicals. The Resin products business provides polyethylene, polypropylene, polycarbonate and functional resin and polyethylene terephthalate. The Basic petrochemicals business includes ethylene oxide, mono ethylene, di ethylene and tri ethylene glycol, methyl methacrylate, ethanolamine, butadiene and samarium. The Chemicals business offers benzene, toluene and mixed xylene. The company was founded on March 16, 1976 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue15,874.51B14,041.89M
Gross Profit3,775.37B3,339.53M
Operating income2,930.11B2,591.84M
Income before tax3,084.68B2,728.57M
Net income2,243.87B1,984.83M
EBITDA3,621.27B3,203.22M
Diluted EPS65,62558.04
Dividends Per Share10,5009.28
Total Assets19,550.97B18,262.54M
Total liabilities7,296.20B6,815.37M
Total equity11,489.62B10,732.45M
Operating cash flow3,152.43B2,788.50M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 16,438.93B 14,858.96B 11,713.33B 13,223.54B 15,874.51B
Gross Profit 903,935.83M 793,158.06M 2,060.10B 3,249.80B 3,775.37B
Operating income 487,376.48M 350,527.50M 1,611.31B 2,545.61B 2,930.11B
Income before tax 402,002.36M 275,893.22M 1,444.77B 2,415.92B 3,084.68B
Net income 287,921.10M 146,855.71M 992,512.35M 1,835.81B 2,243.87B
EBITDA 994,411.90M 843,391.30M 2,098.98B 3,174.76B 3,621.27B
Diluted EPS 8,546 4,359 29,458 54,488 65,625
Dividends Per Share 1,000 1,000 2,500 4,000 10,500
Total Assets 10,687.66B 10,322.65B 11,467.80B 15,866.83B 19,550.97B
Total liabilities 4,393.20B 3,853.65B 3,912.22B 6,466.01B 7,296.20B
Total equity 6,256.11B 6,437.09B 7,524.75B 9,363.11B 11,489.62B
Operating cash flow 311,205.77M 275,420.29M 2,601.78B 2,680.54B 3,152.43B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 15,015.98M 14,115.66M 10,349.26M 11,397.74M 14,041.89M
Gross Profit 825.69M 753.48M 1,820.19M 2,801.09M 3,339.53M
Operating income 445.18M 332.99M 1,423.66M 2,194.13M 2,591.84M
Income before tax 367.20M 262.09M 1,276.52M 2,082.35M 2,728.57M
Net income 262.99M 139.50M 876.92M 1,582.33M 1,984.83M
EBITDA 908.33M 801.20M 1,854.54M 2,736.41M 3,203.22M
Diluted EPS 7.80 4.14 26.02 46.96 58.04
Dividends Per Share 0.91 0.94 2.20 3.44 9.28
Total Assets 10,127.12M 9,391.48M 9,780.22M 13,136.97M 18,262.54M
Total liabilities 4,162.79M 3,506.03M 3,336.50M 5,353.54M 6,815.37M
Total equity 5,928.00M 5,856.43M 6,417.42M 7,752.20M 10,732.45M
Operating cash flow 284.26M 261.64M 2,298.79M 2,310.43M 2,788.50M

Valuation Measures

Dec 2017
PER5.60
ROA12.67%
ROE21.52%
Operating margin18.45%
Profit margin14.13%

Key executives

  • Co-President, Co-CEO & Director: Gyo-Hyeon Kim
  • Co-President & Director: Soo-Young Huh
  • Chief Financial Officer: Seong Taeg Cho
  • Executive Board Member & Head-Research VI Team: Gyeong-Bo Kang
  • Head-Legal & Compliance Support: Sung-Gi Kim

Shareholders

  • LOTTE Holdings Co., Ltd. (40.5%)
  • HOTEL LOTTE Co., Ltd. (12.6%)
  • National Pension Service of Korea (9.7%)
  • BlackRock Fund Advisors (1.1%)
  • The Vanguard Group, Inc. (1.0%)
  • APG Asset Management NV (0.7%)
  • Norges Bank Investment Management (0.7%)
  • Dimensional Fund Advisors LP (0.6%)
  • Robeco Institutional Asset Management BV (0.5%)
  • UBS AG (Investment Management) (0.4%)

Contact Details

  • Website:http://www.lottechem.com
  • Address: 7-11/F, Lotte Tower Building, 51 Boramae-ro 5-gil, Seoul, 07071, South Korea
  • Phone: +82.2.829.4114

Related Companies

  • LTC Chemical Pty Ltd.
  • Lotte Chemical Alabama Corp.
  • Lotte Advanced Materials Co., Ltd.
  • LOTTE CHEMICAL (Jiaxing) Corp.
  • Lotte Chemical Trading (Shanghai) Corp.
  • Lotte Chemical Pakistan Ltd.
  • Sambark Co., Ltd.
  • Lotte Chemical Corp. ESOA.
  • Lotte Chemical Titan Holding Berhad

Competitors

  • Hanwha Chemical Corporation
  • LyondellBasell Industries NV
  • Korea Petro Chemical Ind. Co., Ltd.
  • Daelim Industrial Co., Ltd
  • S-Oil Corporation
  • TK Chemical Corporation
  • Hanwha Corp
  • LG Chem Ltd.
  • Sumitomo Chemical Co., Ltd.
  • Formosa Chemicals & Fibre Corporation
  • Covestro AG
  • PT Lotte Chemical Titan Tbk
  • Trinseo SA
  • Lion Chemtech Co., Ltd.
  • Samyang Corporation
  • Siam Cement Public Co. Ltd.
  • Samyang Holdings Corporation
Last Updated on 14 Aug, 2018

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