Lotte Chemical Titan Holding Bhd shares fell to their lowest level since April 2020 on Thursday, with investors reacting to widening quarterly losses and an uncertain future. The company’s stock dropped by as much as 4.5 sen, or nearly 5%, to 91.5 sen , giving it a market capitalisation of RM2.13 billion . The petrochemical company faces challenges as product spreads remain under pressure due to a global supply glut , primarily from new capacity expansions in China . Analysts at TA Securities noted that Lotte Chemical is likely to stay in the red “over the next few quarters” and maintained a 'sell' rating on the stock. The company has reported quarterly losses since 2QFY2022 and is expected to continue to report losses through this year. Analysts estimate that Lotte Chemical may not return to profitability for another two years , according to Bloomberg consensus data. A significant challenge for Lotte Chemical is the squeeze in spreads between naphtha costs and polymer sel
Samsung Electronics Co. has seen its market value plummet by $122 billion as it grapples with challenges in the AI and semiconductor sectors, leading to the biggest decline of any chipmaker worldwide. Once poised to capitalize on the AI boom, Samsung’s stock has tumbled 32% since its peak in July 2024, as concerns grow over its inability to keep up with competitors like SK Hynix Inc. in AI memory and Taiwan Semiconductor Manufacturing Co. (TSMC) in outsourced chipmaking.
Foreign investors have dumped about $10.7 billion worth of Samsung shares since the end of July, further eroding the company's valuation. Samsung’s delays in high-bandwidth memory (HBM) chip production, crucial for AI processors, have allowed SK Hynix and Micron Technology Inc. to surge ahead in the race for AI chip dominance.
Samsung’s struggles extend beyond AI, as its semiconductor business—traditionally a major profit driver—faces deep challenges. The company issued a rare apology earlier this month for poor results and continues to fall behind in the foundry business, lagging behind TSMC and struggling to compete in outsourced chipmaking, much like Intel Corp..
With mounting pressure on leadership, Samsung’s management is expected to announce a reshuffle before year-end. The company’s executive chairman Jay Y. Lee, appointed in 2022, and Jun Young-hyun, who took over the semiconductor division this year, are under scrutiny as they work to regain investor confidence amid an industry reshaping itself around AI technology.
Samsung’s upcoming third-quarter earnings call will be closely watched for further signs of recovery, but for now, the company faces significant hurdles in its efforts to reclaim its technology leadership in the chip sector.
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