⚡ Flash Summary

LOTCHEM’s unaudited financial results for the quarter and nine months ending September 30, 2025, reveal a mixed performance. Revenue experienced a significant decrease compared to the same period last year, while profit after taxation also declined. The company reported no cash dividend, bonus shares, or right shares. Detailed analysis of the attached financial statements is necessary to understand the drivers behind these results.

📌 Key Takeaways

• 📉 Revenue from contracts with customers decreased to Rs 60,541.12 million for the nine months ended September 30, 2025, compared to Rs 88,976.736 million in 2024.
• 📉 For the quarter ended September 30, 2025, revenue stood at Rs 20,365.180 million, a decline from Rs 24,597.854 million in 2024.
• 💰 Gross profit decreased from Rs 5,029.349 million in 2024 to Rs 2,347.888 million for the nine months period.
• 📉 Operating profit showed a significant decrease, falling from Rs 3,988.061 million in 2024 to Rs 1,369.313 million in 2025.
• 💸 Finance costs decreased from (Rs 615.893) million to (Rs 457.529) million
• 📊 Profit before taxation declined from Rs 4,363.011 million to Rs 1,374.180 million.
• 📉 Profit after taxation witnessed a considerable drop, from Rs 2,661.597 million to Rs 835.868 million.
• 📉 Earnings per share (basic and diluted) decreased from Rs 1.76 to Rs 0.55.
• 💵 No cash dividend was recommended by the Board of Directors.
• 🚫 No bonus shares or right shares were recommended.
• 🏦 Cash and bank balances decreased from Rs 8,833.047 million (December 31, 2024) to Rs 2,433.500 million (September 30, 2025).

🎯 Investment Thesis

Based on the analysis of the financial results, a SELL recommendation for LOTCHEM is warranted. The significant decline in revenue, profitability, and EPS indicates a weakening financial position. Given the negative trends and potential risks, a price target should be set based on a conservative valuation approach, considering the reduced earnings capacity and increased uncertainty. This recommendation is based on a short-term to medium-term outlook, as the company’s performance needs to be closely monitored for any signs of recovery or improvement.