Lotte Chemical Pakistan Limited (LOTCHEM): Upbeat margins yet to reflect in price; attractive valuations warrant BUY! – By BMA Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We re-instate coverage on Lotte Chemical Pakistan Ltd (LOTCHEM), Pakistan&rsquo;s only PTA producer, with a Buy rating and a DCF based TP of PKR23, offering total return of 36%.&nbsp;&nbsp;</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We believe the turnaround in PTA margins is sustainable at least until 2020 and should enable the company to deliver strong EBITDA (PKR7-8bn p.a). LOTCHEM is better positioned to benefit from up-cycle in margin given cost efficiencies.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">The stock remains a net beneficiary of PKR devaluation where every 5% devaluation above our base case has the potential to enhance the bottom-line by 9-12% in C...