November 16, 2024
Stocks & Bonds
[EQUITIES] ‘LG Chem will benefit from Clean India campaign’
[THE INVESTOR] India has launched a 11.7 trillion won Clean India campaign to install 60 million toilets across the country by 2019, and it will drive the demand for polyvinyl chloride benefiting LG Chem, said Kiwoom Securities on Dec. 22.
“Even if the program reaches 50 percent of the target, PVC demand will increase up to 300,000 tons, and Indian firms lack the capacity to supply it,” said analyst Lee Dong-uk.
About 50 to 60 percent of PVC export is focused on India, which in 2016 consumed approximately 1.5 million tons. By 2021, the South Asian country will need up to 3 million tons, estimated the analyst.
LG Chem will post 512.9 billion won operating profit in the fourth quarter, 27.3 percent higher than market estimates, added Lee.
By Hwang You-mee (glamazon@heraldcorp.com)
“Even if the program reaches 50 percent of the target, PVC demand will increase up to 300,000 tons, and Indian firms lack the capacity to supply it,” said analyst Lee Dong-uk.
About 50 to 60 percent of PVC export is focused on India, which in 2016 consumed approximately 1.5 million tons. By 2021, the South Asian country will need up to 3 million tons, estimated the analyst.
LG Chem will post 512.9 billion won operating profit in the fourth quarter, 27.3 percent higher than market estimates, added Lee.
By Hwang You-mee (glamazon@heraldcorp.com)
