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Biz News Korea(Eng)
Kumho Petrochemical hit 52-week high on earnings improvement
- Collected
- 2017.12.20
- Distributed
- 2017.12.22
- Source
- Go Direct
According to the country’s bourse operator Korea Exchange (KRX), shares of Kumho Petrochemical on Tuesday briefly reached a new intraday 52-week high of 99,800 won ($92.17), nearly 50 percent higher than this year’s lowest of 66,100 won recorded in Oct. 13.
As of 2:28 p.m. Wednesday, its shares were 3.02 percent up at 99,000 won from the previous session.
The company’s shares had been lethargic since 2012 as the market for its mainstay product synthetic rubber suffered from a fall in prices due to an oversupply. But the market sharply rebounded this year and will likely stay strong next year.
“Global synthetic rubber manufacturers addressed capacity problem from 2015 to 2017 and are finally out of glut,” said a market analyst. “Its supply would be dropped further as China will likely cut its production to meet Beijing’s green development path.” Kumho Petrochemical’s synthetic rubber business is expected to return to profits in the fourth quarter of this year ended December, the source added.
According to Seoul-based financial data provider FnGuide, the Korean petrochemical company’s operating profit this year is estimated at 218.8 billion won, about 40 percent higher from last year. Its shares are expected to continue its rally for a while as the outlook for the company’s flagship synthetic rubber market next year remains upbeat.
By Yoon Jin-ho and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]