Lotte Chemical Corp

Lotte Chemical Corp has a liquidity position that is characterized by a current ratio of 1.04, indicating that the company has just enough current assets to cover its current liabilities. The company's liquidity is further reflected in its cash and equivalents of 1,863,911,971,920 KRW, which is significantly lower than its long-term debt of 9,614,456,156,320 KRW, resulting in a negative net cash position. The company's profitability is currently negative, with a return on equity of -16.19% and a return on assets of -6.55%, which are below the industry norms for commodity chemicals. The operating income is negative at -20,171,221,119,600 KRW, and the net income is also negative at -2,037,135,124,080 KRW, indicating a challenging financial performance. Lotte Chemical Corp's revenue is concentrated in the commodity chemicals segment, with no disclosed geographic breakdown in the provided data. The company's revenue concentration in a single business segment may expose it to higher risk if market conditions for commodity chemicals deteriorate. The company's growth trajectory is uncertain, with no specific numeric deltas provided for the current or next fiscal year. However, the negative operating and net income suggest that the company may face challenges in achieving growth in the near term. The risk assessment for Lotte Chemical Corp indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt suggests that the company may need to manage its liquidity carefully to avoid financial distress. There is no mention of dilution potential in the basic shares outstanding, as both basic and diluted shares are the same at 42,167,147. Recent events related to Lotte Chemical Corp include analyst estimates that suggest a range of price targets from 55,000 KRW to 165,000 KRW, with a mean recommendation of 2.24, indicating a generally positive outlook from analysts. The mean price target is 105,235.29 KRW, and the median is 110,000 KRW, suggesting that analysts expect the stock to appreciate from its current market price of 81,900 KRW.