Korea Stock Market Insights

Tag: LOTTE Fine Chemical

  • LOTTE Fine Chemical Invests 127 Billion Won: Strengthening Green Materials Business with Hesellos Acquisition


    LOTTE Fine Chemical Invests 127 Billion Won: Strengthening Green Materials Business with Hesellos Acquisition 대표 차트 이미지



    1. LOTTE Fine Chemical’s Hesellos Acquisition: What’s Happening?

    LOTTE Fine Chemical will acquire LOTTE Chemical’s Yeosu plant Hesellos manufacturing facilities for 127 billion won by December 31, 2025. This represents 4.68% of LOTTE Fine Chemical’s assets and is a strategic investment to improve efficiency and reduce processing costs by directly operating the Hesellos plant.

    2. Why the Hesellos Acquisition?

    LOTTE Fine Chemical focuses on chemical and green materials businesses, and Hesellos is one of the key products in the green materials business. This acquisition aims to enhance production efficiency and cost competitiveness through vertical integration of the Hesellos business. LOTTE Fine Chemical’s operating profit slightly decreased in the first half of 2025 compared to the same period last year, and this investment is expected to improve profitability.

    3. Impact of the Acquisition on LOTTE Fine Chemical

    • Positive Impacts: Increased operating efficiency, cost reduction, strengthened competitiveness in the green materials business, synergy with LOTTE Chemical
    • Negative Impacts: Short-term liquidity burden, facility operation risks
    • Neutral Impacts: Macroeconomic variables such as exchange rates, interest rates, and raw material prices

    Overall, positive impacts are expected to outweigh negative ones in the long term. However, continuous monitoring of facility operation and market conditions after the acquisition is necessary.

    4. Investor Action Plan

    Currently, no specific market expectations for this acquisition have been released. However, experts interpret it as a positive signal in the long term and recommend a ‘buy’ opinion. Investors should closely monitor the actual cost reduction effect, Hesellos business growth rate, and additional investment plans after the acquisition.



    Frequently Asked Questions

    What is Hesellos?

    Hesselos is one of the core products of LOTTE Fine Chemical’s green materials business.

    How will this investment affect LOTTE Fine Chemical’s stock price?

    It may not have a significant impact in the short term, but it is expected to have a positive impact in the long term.

    What are the key points to consider when investing?

    Investors should continuously monitor post-acquisition facility operating efficiency, Hesellos business growth rate, and macroeconomic variables.



    LOTTE Fine Chemical Invests 127 Billion Won: Strengthening Green Materials Business with Hesellos Acquisition 관련 이미지
    LOTTE Fine Chemical Invests 127 Billion Won: Strengthening Green Materials Business with Hesellos Acquisition 관련 이미지


  • LOTTE Fine Chemical Q2 Earnings Disappoint: What Investors Need to Know

    1. LOTTE Fine Chemical Q2 Earnings Breakdown

    LOTTE Fine Chemical’s Q2 2025 revenue slightly beat expectations at ₩424.7 billion, but operating profit and net income significantly missed the mark, coming in at ₩8.7 billion (-6%) and ₩15.5 billion (-25%), respectively. The substantial drop in net income warrants further investigation and suggests a combination of factors, such as increased interest expenses, one-off costs, and reduced net profit after tax.

    2. Why the Underperformance?

    Several factors contributed to this underperformance, including rising raw material prices, difficulties in cost management, fluctuations in exchange rates and interest rates, and internal factors like the management changes following the March general shareholders’ meeting. The company appears to have struggled to pass on increased raw material costs to consumers, impacting profitability.

    3. LOTTE Fine Chemical: Fundamental Analysis

    • Profitability: Deteriorating due to the insufficient offsetting of rising raw material prices by product price increases. Declining operating profit margin trend is a concern.
    • Financial Stability: Debt-to-equity ratio is low, but continued decline in profitability could increase liquidity risks.
    • Growth: Ammonia business expansion plans are positive, but require close monitoring due to external factors like crude oil prices and shipping market conditions.

    4. Action Plan for Investors

    Investors considering LOTTE Fine Chemical should carefully assess the following: the reasons behind the decline in net income (awaiting further disclosure), monitor raw material price and exchange rate fluctuations, track the progress of new business ventures, and keep an eye on any shifts in management strategy. For long-term investors, the growth potential of the ammonia business and the impact of management changes on the company’s overall strategy are crucial factors to watch.

    Q: What were the main reasons for LOTTE Fine Chemical’s disappointing Q2 results?

    A: A combination of rising raw material prices, insufficient offsetting price increases, currency and interest rate fluctuations, and management changes contributed to the underperformance.

    Q: What is the outlook for LOTTE Fine Chemical?

    A: The ammonia business expansion plans are positive, but external factors like crude oil prices and shipping market conditions could impact performance. Investors should await further disclosures and monitor external developments.

    Q: What should investors consider before investing in LOTTE Fine Chemical?

    A: Investors should analyze the reasons behind the decline in net income, monitor raw material price and exchange rate fluctuations, track new business developments, and keep an eye on any changes in management strategy.