External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>We lower our target price for Lotte Chemical to W63,000 (from W112,000).</li><li>We keep our 12-month forward BPS estimate unchanged at W280,000 but lower our target P/B to 0.23x (from 0.4x) to reflect a lower ROE.</li><li>The revised multiple is broadly in line with the valuation seen in 2024-25, when the company recorded a similarly low ROE. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We lower our target price for Lotte Chemical to W63,000 (from W112,000).We keep our 12-month forward BPS estimate unchanged at W280,000 but lower our target P/B to 0.23x (from 0.4x) to reflect a lower ROE.The revised multiple is broadly in line with the valuation seen in 2024-25, when the company recorded a similarly low ROE. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lotte Chemical (011170)Balance Sheet Improvement Begins Even as Negative Lagging Effects Set In

Lotte Chemical -  Balance Sheet Improvement Begins Even as Negative Lagging Effects Set In

<ul><li>We raise our target price for Lotte Chemical from W89,000 to W112,000.</li><li>We revised up our 12-month forward BPS estimate from W250,000 to around W280,000 and also increased our target P/B from 0.36x to 0.4x, reflecting a likely recovery in ROE.</li><li>Supply shortages stemming from the Middle East conflict have driven broad-based strength in chemical product prices; with prices likely to remain elevated at least through end-2026, we now expect annual earnings to improve meaningfully relative to our previous forecast. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We raise our target price for Lotte Chemical from W89,000 to W112,000.We revised up our 12-month forward BPS estimate from W250,000 to around W280,000 and also increased our target P/B from 0.36x to 0.4x, reflecting a likely recovery in ROE.Supply shortages stemming from the Middle East conflict have driven broad-based strength in chemical product prices; with prices likely to remain elevated at least through end-2026, we now expect annual earnings to improve meaningfully relative to our previous forecast. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lotte Chemical (011170 KS) Earnings Likely to Improve in 2Q, but Negative Lagging Effects Lie Ahead

<ul><li>We maintain our Hold rating and target price of W89,000 for Lotte Chemical.</li><li>The stock has performed relatively well recently, which we attribute to policy changes in China (i.e., changes to the naphtha consumption tax system and the end of VAT export rebates for solar and battery products) as well as a deterioration in the cost competitiveness of Chinese peers.</li><li>While these factors are supportive for domestic chemical players, Lotte Chemical faces headwinds such as: 1) rising costs from the startup of Lotte Chemical Indonesia (LCI) operations; and 2) continued pressure from capacity additions in China. While earnings should improve YoY in 2026, key indicators will need to be monitored to assess whether losses can be reduced meaningfully</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our Hold rating and target price of W89,000 for Lotte Chemical.The stock has performed relatively well recently, which we attribute to policy changes in China (i.e., changes to the naphtha consumption tax system and the end of VAT export rebates for solar and battery products) as well as a deterioration in the cost competitiveness of Chinese peers.While these factors are supportive for domestic chemical players, Lotte Chemical faces headwinds such as: 1) rising costs from the startup of Lotte Chemical Indonesia (LCI) operations; and 2) continued pressure from capacity additions in China. While earnings should improve YoY in 2026, key indicators will need to be monitored to assess whether losses can be reduced meaningfullyContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lotte Chemical (011170 KS/Hold)Near-Term Earnings Improvement to Remain Challenging

<ul><li>Start of commercial operations for Line Project (LCI)Raise TP to W89,000; maintain Hold We raise our target price for Lotte Chemical to W89,000 (from W64,000) while maintaining our Hold rating</li><li>The higher target price reflects narrower losses and a corresponding upward revision in 12MF BPS</li><li>Our TP is based on a 12MF BPS of W296,000 and a target P/B multiple of 0</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Start of commercial operations for Line Project (LCI)Raise TP to W89,000; maintain Hold We raise our target price for Lotte Chemical to W89,000 (from W64,000) while maintaining our Hold ratingThe higher target price reflects narrower losses and a corresponding upward revision in 12MF BPSOur TP is based on a 12MF BPS of W296,000 and a target P/B multiple of 0Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Lotte Chemical (011170 KS/Hold)Start of Commercial Operations for Line Project (LCI)

South Korea

Lotte Chemical Corporation manufactures a wide range of petrochemical products such as high density polyethylene, polypropylene, and ethylene glycol. The Company's products are used in manufacturing general housewares, pipes, films, fabrics, bottles, containers, and automotive parts.

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Lotte Chemical (011170 KS)

Lotte Chemical (011170)Balance Sheet Improvement Begins Even as Negative Lagging Effects Set In

We keep our 12-month forward BPS estimate unchanged at W280,000 but lower our target P/B to 0.23x (from 0.4x) to reflect a lower ROE.

Mirae Asset Securities

Lotte Chemical - Balance Sheet Improvement Begins Even as Negative Lagging Effects Set In

We keep our 12-month forward BPS estimate unchanged at W280,000 but lower our target P/B to 0.23x (from 0.4x) to reflect a lower ROE.

Mirae Asset Securities