Equity Analyst focused on Korea Stock Market

Thomas Yi

Equity Bottom-Up

Korea Petrochemical Ind / Equity Bottom-Up

<ul class=""><li>1Q18 sales in line, but operating profit misses due to strong won and weather-triggered shutdown</li><li>Full-blown top-line growth, better earnings expected in 2Q18</li><li>General market conditions in line with forecast—ethylene chains weaker, propylene stronger</li><li>Revised down 2018 annual estimates, reflecting strong KRW to USD</li><li>Highest 2018 EPS growth and lowest consensus P/E, vs poorest share performance</li><li>Stock Information: Share price(18/05/08) KRW 263,500/ Market Cap(18/05/08) KRW 1.71tr/ Trading Volume (@60days) 41,090 shares/ Historical price(52 weeks; Highest/Lowest) KRW 342,000/KRW 232,500/ Absolute Return (52 weeks) 8.2%/ Relative Return (52weeks) 1.3%/ Major shareholders - Sun Gyu Lee and others 40.3%, National Pension Fund 13.1%</li></ul>

1Q18 sales in line, but operating profit misses due to strong won and weather-triggered shutdownFull-blown top-line growth, better earnings expected in 2Q18General market conditions in line with forecast—ethylene chains weaker, propylene strongerRevised down 2018 annual estimates, reflecting strong KRW to USDHighest 2018 EPS growth and lowest consensus P/E, vs poorest share performanceStock Information: Share price(18/05/08) KRW 263,500/ Market Cap(18/05/08) KRW 1.71tr/ Trading Volume (@60days) 41,090 shares/ Historical price(52 weeks; Highest/Lowest) KRW 342,000/KRW 232,500/ Absolute Return (52 weeks) 8.2%/ Relative Return (52weeks) 1.3%/ Major shareholders - Sun Gyu Lee and others 40.3%, National Pension Fund 13.1%

Korea Petrochemical Ind

KPIC (006650 KS) "Takeoff Coming in 2Q"