ANALYST REPORT
Kumho Petrochemical : 3Q12 results disappoint
4Q outlook: Despite one-month of maintenance shutdown in Oct, we
expect higher sales volume on the back of capacity expansions (SBR:
110k tons in Sep, SSBR: 60k tons in Nov) to support better 4Q sales and
earnings. However, we remain cautious on the synthetic rubber market
and believe that chances of significant earnings growth is low as we
have yet to see signs of demand recovery (especially in China) that is
critical for higher product spreads. Synthetic rubber prices may remain
suppressed through yearend on falling BD prices, in our view.
expect higher sales volume on the back of capacity expansions (SBR:
110k tons in Sep, SSBR: 60k tons in Nov) to support better 4Q sales and
earnings. However, we remain cautious on the synthetic rubber market
and believe that chances of significant earnings growth is low as we
have yet to see signs of demand recovery (especially in China) that is
critical for higher product spreads. Synthetic rubber prices may remain
suppressed through yearend on falling BD prices, in our view.
No. 3392012.10.22
Kumho Petrochemical : 3Q12 results disappoint
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