Last updated on August 23, 2025
KUALA LUMPUR: Shares of Lotte Chemical Titan Holding Bhd (LCTITAN) tumbled on Wednesday, as analysts reiterated their advice for investors to steer clear of the petrochemical producer, which has now recorded its 13th straight quarterly loss.
The group is projected to post a full-year net loss of around RM710 million and is expected to remain in the red for at least the next three years, according to Bloomberg consensus estimates, amid persistent industry headwinds from weak demand and excess capacity.
“Although softer feedstock costs and reduced operating rates could offer some margin relief, we believe LCTITAN’s losses will likely continue over the coming quarters, as product spreads show little sign of recovering sufficiently to offset fixed and operating expenses,” said TA Securities.
The counter dropped 5.5 sen, or nearly 8%, to 66 sen in early trade. By 9.30am, it had pared some losses to trade at 67.5 sen, with over 5.5 million shares changing hands. At that price, LCTITAN’s market capitalisation stood at RM1.56 billion.
Of the five research houses covering the stock, four have issued “sell” calls, with BIMB Securities the sole outlier recommending a “trading buy.” Bloomberg data shows an average target price of 41 sen, implying a downside risk of nearly 40% from current levels.
Prior to Wednesday’s decline, LCTITAN’s share price had risen 11% year-to-date. However, the stock has been on a long-term downtrend since its 2018 listing, with only intermittent rebounds.
Maybank Investment Bank also maintained its “sell” recommendation, warning that the company faces a “double whammy” from continued polymer price pressure due to a supply glut, and shrinking margins from elevated naphtha prices.
