Jinyoung Achieves 1Q Profit Turnaround... "Earnings Growth Based on Semiconductor and Secondary Battery Films"

Jinyoung announced on the 16th that its first-quarter sales increased by 12.9% year-on-year to 9.08 billion KRW. Operating profit for the same period turned positive to 28 million KRW, while net loss amounted to 34 million KRW.

The improvement in first-quarter performance was driven by increased exports and sales of industrial films. Although Jinyoung's performance slowed last year due to a downturn in the construction market, it successfully reversed the negative growth trend starting from the first quarter. The company explained that it plans to target the high-end market centered on PMMA (polymethyl methacrylate) material products this year and expand export volumes to China.

Jinyoung is diversifying its product portfolio with industrial films for semiconductors, secondary batteries, and other sectors. The results of industrial films are expected to become visible starting this year. Anti-static films for semiconductors and packaging films for secondary batteries are currently undergoing final testing, and since no separate mass production procedures are required, rapid supply is possible.

Jinyoung plans to maximize sales through its new pyrolysis oil business. The company entered the pyrolysis oil market last year by acquiring Korea Eco Energy. Earlier this year, Korea Eco Energy signed a contract to supply all pyrolysis oil produced at the Yeongcheon plant to a leading domestic oil refining company and completed the initial delivery. Jinyoung plans to begin expanding Korea Eco Energy’s facilities as early as this month, and after the expansion, Korea Eco Energy’s production capacity (CAPA) is expected to double.

A Jinyoung representative said, “Export volumes to China rebounded after hitting a low last year, leading to improved first-quarter performance,” adding, “We plan to highlight brand premiums for key products together with our clients, which is expected to generate additional sales in our core business.”

He continued, “Starting this year, sales from various industrial films and new businesses will be fully reflected, resulting in a significant increase in performance,” and added, “The semiconductor and secondary battery films, as well as the pyrolysis oil new business, have high added value, so not only sales but also profits are expected to increase substantially.”