EM ASIA CREDIT: Q1 Results: LG Chem (LGCHM, Baa1/BBB/NR) - Beat
"*LG CHEM 1Q OPER PROFIT 446.97B WON, EST. 163.19B WON" - BBG
- LG Chem has reported its Q1 operating profits up 67% YoY to KRW447bn and ahead of consensus (KRW163bn). Overall positive for spreads.
- In terms of the individual business units, Petrochemicals (39% of sales) continued to be loss making (KRW56bn op. loss), though should improve as raw material prices come down. The largest unit, the EV battery business Energy Solutions (51% of sales), more than doubled operating profits to KRW375bn. That said, going forward we could see some weakness here as tariffs cause automakers to be more conservative with volume expectations.
- We await a more detailed financial release to assess credit quality.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
AUDUSD TECHS: Support Remains Intact For Now
- RES 4: 0.6429 High Dec 12 ‘24
- RES 3: 0.6414 38.2% retracement of the Sep 30 ‘24 - Feb 3 bear leg
- RES 2: 0.6409 High Feb 21 and a bull trigger
- RES 1: 0.6331/91 High Mar 26 / High Mar 17 and 18
- PRICE: 0.6287 @ 08:04 BST Mar 28
- SUP 1: 0.6258 Low Mar 21
- SUP 2: 0.6187 Low Feb 4
- SUP 3: 0.6171/6088 Low Feb 4 / 3 and a key support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
AUDUSD is unchanged and is trading in a tight range. A S/T bull theme is intact and the latest move down appears corrective. Key short-term support to watch is 0.6187, the Mar 4 low. Clearance of this level would reinstate a bear threat. First support is at 0.6258, the Mar 21 low. A stronger recovery would refocus attention on 0.6409, the Feb 21 high. Clearance of this hurdle would strengthen the bull cycle and resume the uptrend that started Feb 3.
US TSY FUTURES: Screen Buyer Of TU Helps Underpin Rally
Note that a 5K screen lift of TU futures at 103-23 helps underpin the space, even as European equity index futures edge away from lows.
EURJPY TECHS: Monitoring Support
- RES 4: 165.43 High Nov 8
- RES 3: 164.90 High Dec 30 ‘24 and a key medium-term resistance
- RES 2: 164.55 High Jan 7
- RES 1: 164.19 High Mar 18 and the bull trigger
- PRICE: 161.49 @ 08:01 GMT Mar 31
- SUP 1: 161.13 Intraday low
- SUP 2: 160.66 50-day EMA and a pivot support
- SUP 3: 158.90 Low Mar 10
- SUP 4: 158.00 Round number support
A bull theme in EURJPY remains intact and recent weakness between Mar 18 - 20 appears corrective. This sell-off allowed an overbought condition to unwind. Pivot support to watch is 160.66, the 50-day EMA. A break of this level would signal potential for a deeper retracement. For bulls, sights are on resistance at 164.08, the Jan 24 high. It has been pierced, a clear break of it would strengthen a bullish condition and open 164.90, the Dec 30 ‘24 high.
