Shares of Lotte Chemical Titan Holding fell sharply on Tuesday morning following the release of its quarterly report, which showed another loss for the company. The Malaysia-listed chemical company saw its shares slide by as much as 12%, with a 9.6% decrease at 1.32 ringgit. This resulted in a 17% loss over the past year.

According to the filing made on Monday evening, Lotte Chemical Titan reported a net loss of MYR186.5 million ($39.4 million) for the fourth quarter, compared to a net loss of MYR333.6 million in the same period the previous year. The narrower loss was attributed to lower feedstock costs and foreign-exchange gains.

Furthermore, quarterly revenue dipped by 10% to MYR1.86 billion due to lower sales volumes amidst a global economic slowdown.

Analyst Jeremie Yap from Maybank Investment Bank stated that this year will likely continue to be challenging for Lotte Chemical Titan, given the weak macro climate for downstream petrochemical products and higher naphtha costs due to rising crude oil prices.

Maybank has raised its target on the stock to MYR0.95 from MYR0.83 after the narrower loss was reported, but has maintained a sell rating.

On the other hand, analyst Azim Faris Ab Rahim from BIMB Securities believes that Lotte Chemical Titan’s share price already reflects weak demand expectations in an oversupplied market with intense competition. However, he remains positive about the company’s long-term prospects, especially with their expansion project in Indonesia and strong financial condition.

BIMB Securities has kept its hold rating on Lotte Chemical Titan and maintained its target price at MYR1.39.

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