[Click eStock] "PI Cheomdansojae, 2Q Turns Profitable... Target Price Up"

Kiwoom Securities raised the target price for PI Advanced Materials from 47,000 KRW to 51,000 KRW on the 21st.

PI Advanced Materials is expected to record sales of 60.5 billion KRW and an operating profit of 4.7 billion KRW in the second quarter, surpassing market expectations. After inventory adjustments were completed by the first quarter, the second quarter saw customer inventory accumulation demand exceed expectations, leading to a turnaround to profitability. Sales, which had been declining since the second quarter of last year, are expected to grow quarter-on-quarter for the first time in five quarters due to inventory normalization. The operating profit margin for the second quarter is expected to be 8%, significantly exceeding the previous forecast of 4%.

The outlook for the second half of the year is even brighter. Thanks to the seasonal peak period, the operating rate is rapidly expanding to 75%, and combined with cost ratio improvements, performance growth compared to the previous year is expected. The expected third-quarter results are sales of 75.7 billion KRW and an operating profit of 17.2 billion KRW.

Kim Sowon, a researcher at Kiwoom Securities, said, "We expect not only the normalization of the core business but also momentum from supplying materials for new applications." He added, "In particular, the expansion of supply for battery insulation films and materials for XR devices, including Vision Pro, is anticipated. With steady capacity expansions, the company holds a significantly larger production capacity (CAPA) compared to competitors, so it is judged that the benefits of expanding new applications will be the greatest." He continued, "As demand for PI varnish supplied for electric vehicles is expected to increase, improvements in the core business and diversification of materials and applications are expected to continue."

This content was produced with the assistance of AI translation services.