[Click eStock] "ASEMS, Chemical Product Price Stabilization... 3Q Operating Profit Margin Expected to Improve"

[Asia Economy Reporter Lee Jung-yoon] IBK Investment & Securities forecasted on the 26th that Asems' operating profit margin for the third quarter of this year will improve again due to the stabilization of chemical product prices.

Asems' sales in the second quarter of this year amounted to 13.2 billion KRW, a 29% increase compared to the same period last year, and operating profit rose by 2.8% to 1.8 billion KRW.

In the second quarter, Asems' sales were composed of 72% from the adhesive film segment, 17% from the automotive fabric segment, and 11% from others. The growth in the adhesive film segment was analyzed to have driven the performance. Sales in the adhesive film segment recorded 9.5 billion KRW, a 43.9% increase compared to the same period last year, and the non-woven type is still considered to maintain a monopolistic position within its client companies.

In the automotive fabric segment, new sales related to headliners were delayed, but considering the strengthening of regulations on automotive interior air quality, it was analyzed that there is a possibility of adoption in next-generation new model vehicles.

Researcher Chae Yoon-seok of IBK Investment & Securities explained, "Asems' operating profit margin in the second quarter recorded 13.6%, which is estimated to be influenced by price fluctuations of major raw materials, chemical products, and inventory procurement," adding, "Considering the recent stabilization of chemical product prices, the profit margin is expected to improve again in the third quarter."