LMG Chemicals Corporation (LMG) was incorporated on April 20, 1970 to
primarilyengage in the manufacture and distribution of industrial
chemicals. LMG's main productis Technical Grade Sulfuric Acid, which is a
basic industrial chemical used by variousbasic industries. LMG
manufactures oleum from sulfuric acid and produces sulfur flakesfrom
molten sulfur. The Company also produces chemically pure sulfuric acid
productsused largely by the battery manufacturing companies. LMG is a
73.93%-ownedsubsidiary of Chemical Industries of the Philippines, Inc.On
October 23, 2007, LMG transferred its acid plant and tank farm
properties to wholly-owned subsidiaries, Chemphil Manufacturing Corp.
(CMC) and LMG Land DevelopmentCorporation (LMGLDC), respectively, to
consolidate the acid plant and tank farmoperations into individual
holding companies for better management and monitoring.In August 2008,
LMG sold its entire shareholdings in LMGLDC to Chemoil
EnergyPhilippines, Inc. and Chemoil Fuel Philippines, Inc. LMG owns 100%
of CMC and 60%of Kemwater Phil. Corporation (KPC).In October 2009, the
BOD of LMG declared LMG's investment in shares of CMC and KPCas property
dividends. Two months after, a deed of assignment was executed to
assignLMG's rights, titles and interest over the shares in CMC and KPC
to the stockholders ofLMG in proportion to their respective
shareholdings.Source: SEC Form 17-A (2010)(As of June 23, 2011)DIRECTORS
recommendation
BUY LMG
initial TP is 2
support 1.40
