PakStox Outlook

Shaheryar Arshad Chisty, who is also named in the disputed ownership struggle of Karachi Electric (PSX: KEL), has made a public offer to acquire a controlling stake in Lotte Chemical (PSX: LOTCHEM) through his offshore-registered investment vehicle. https://dps.psx.com.pk/download/document/247328.pdf

LOTTE Chemical Pakistan Limited Financial Results: Quarter Ended March 31, 2024 Cash Dividend: Rs. 0.5 per share EPS: Rs. 0.6 (compared to Rs. 1.68 in the first quarter of the previous year) During this quarter, LOTCHEM's gross margin experienced a significant decline, dropping to 5% from 20% in the same period last year. Despite a robust sales growth of over 46% compared to last year's first quarter, the decline in gross margin impacted profitability. The plummeting gross margin led to a more than 60% decrease in both gross profit and operating profit. Additionally, the higher tax rate of 39%, up by 6% from the previous year, further affected the bottom line, resulting in a 65% decrease in profit after tax to Rs. 0.89 billion. As of yesterday, LOTCHEM closed at a market price of Rs. 18.34. It has declined more than 32% this year. Lotte Chemical Corporation owns over 75% shares of LOTCHEM. LOTCHEM Announcement.

Lotte Chemical Pakistan Limited (PSX:LOTCHEM) 1st Quarter March 2023 EPS: Rs. 1.68 Cash Dividend: Interim cash Dividend of Rs. 2 per share. (20%) Price (Rs.) 1 Month 6 Month 1 Year 25.24 -0.7% -19.1% 27.6% EPS (Earnings Per Share): The EPS for the quarter was Rs. 1.68, which represents a growth of 26.30% compared to previous quarter. However, EPS growth over the average EPS for the last trailing twelve months was only 0.51%. Sales: LOTCHEM earned a revenue of Rs. 22,117 million for the quarter, which is an increase of 6.6% compared to the previous quarter and 8.8% compared to the same quarter last year. Gross Profit : The gross profit for the quarter was Rs. 4,439 million, which is a significant increase of 47.3% compared to the previous quarter and 10.7% compared to the same quarter last year. Profit After Tax: LOTCHEM earned profit after tax for the quarter of Rs. 2,542 million, which registered a growth of 26.3% compared to the previous quarter, but a decline of 2.8% co...

Share Price (Rs.) 1 Month 3 Month 1 Year 24.43 -4.54% 4.54% 57.56% LOTCHEM announced,  for the year ending December 2022, an annual earnings per share of Rs. 6.68 (vs. Rs. 3.07 last year)  and a cash dividend of Rs. 2 per share, in addition to the Rs. 4 per share cash dividend announced at the half-year. The company has changed hands, so new owners may change dividend payout policy. LOTCHEM earned a profit after tax of Rs. 10.1 billion for the year ending December 2022. This is higher by 117% over PAT of Rs. 4.64 billion last year. This substantial rise in PAT is primarily because of increase in Sales by 49% over last year and higher gross profit margin of 17.7% compared to GP margin of 11.28% last year. This growth in the PAT is despite a 144% increase in “other operating expenses” and more than doubling ‘“finance costs’. The tax rate for LOTCHEM this year was also high, at 36%, compared to 29% last year. On a quarterly basis, EPS in the fourth quarter was Rs. 1.33, declining...