ANALYST REPORT
Kumho Petrochemical : 1Q operating profit likely beat the consensus materially
What has changed?
● We now forecast Kumho Petrochemical's(KKPC) 1Q11 operating profit to increase by 196% YoY and 83% QoQ to W192bn, on stronger synthetic rubber prices and lower raw-material costs than we expected previously.
Impact
● 1Q11 operating profit likely to beat the Bloomberg-consensus forecast by 52%
● Sharp natural rubber price correction behind KKPC's weak share price
● We see the above concerns as overdone 1) the risk of further downside for natural rubber prices seems to be limited 2) Synthetic rubber supplies remain tight
● We now forecast Kumho Petrochemical's(KKPC) 1Q11 operating profit to increase by 196% YoY and 83% QoQ to W192bn, on stronger synthetic rubber prices and lower raw-material costs than we expected previously.
Impact
● 1Q11 operating profit likely to beat the Bloomberg-consensus forecast by 52%
● Sharp natural rubber price correction behind KKPC's weak share price
● We see the above concerns as overdone 1) the risk of further downside for natural rubber prices seems to be limited 2) Synthetic rubber supplies remain tight
No. 1322011.03.17
Kumho Petrochemical : 1Q operating profit likely beat the consensus materially
No. 1342011.03.21
No. 1332011.03.18
No. 1312011.03.10
No. 1302011.03.09
