Friday 29 Mar 2024
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KUALA LUMPUR (Aug 15): Lotte Chemical Titan Holding Bhd (LCT) shares jumped 9.15% in active trade this morning, after JPMorgan Chase & Co analyst Ajay Mirchandani and Maybank IB Research yesterday initiated coverage of LCT with a recommendation of overweight and buy respectively.

In addition, four of LCT’s structural warrants are also among the most actively-traded counters this morning.

At 11am, LCT rose 43 sen to RM5.13, with a one week trading volume high of 16.9 million shares. It was also the top gainer on Bursa Malaysia. However, LCT is still 21.08% lower, compared with its IPO price of RM6.50.

The stock has gained 19.86% from its recent tumble to RM4.28 on Aug 1, after announcing weaker earnings in its second financial quarter ended June 30, 2017 (2QFY17).

Meanwhile, at 11.15am, LCT's Call Warrant B was unchanged at three sen, with a total traded volume of 43.35 million. LCT's Call Warrant F was 0.5 sen lower at 4 sen, with a total traded volume 43.21 million.

LCT's Call Warrant E was 3 sen higher at 21 sen, with a total traded volume of 27.1 million. LCT's Call Warrant A was 0.5 sen higher at 4.5 sen, with a total traded volume of 26.84 million.

LCT's Call Warrant B, Call Warrant F, Call Warrant E and Call Warrant A has an exercise price of RM7.80, RM6.28, RM5.50 and RM6.80 respectively.

Mirchandani forecasted LCT to trade at RM7 within a year, implying a 61% increase from the last close. The new target is 3.3% below the consensus average of RM7.24. 

LCT is an efficient petrochemical manufacturer with access to the high growth ASEAN and North Asian regions, said Maybank IB Research in a research report yesterday.

“2017 is a transition year due to scheduled maintenance shutdowns, but production should normalise by 4Q17,” the research house said.

LCT had only one buy recommendation before this week. Out of four research houses covering LCT, all had a buy call, with a target price ranging between RM6.88 to RM7.85.

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