[Click eStock] "PI Advanced Materials to Supply Ultra-Thin PI Film Early This Year... Undervalued Appeal Highlighted"

Kiwoom Securities analyzed on the 7th that PI Advanced Materials is expected to see performance growth after supplying ultra-thin PI film earlier this year. No investment opinion or target price was provided.

Kiwoom Securities forecasted that PI Advanced Materials will achieve sales of 60.7 billion KRW and operating profit of 7 billion KRW in the first quarter, representing increases of 17% and 183% respectively compared to the same period last year.

Kim Sowon, a researcher at Kiwoom Securities, said, "After year-end inventory adjustments, demand for inventory accumulation from clients is expanding again," adding, "In particular, we believe that demand recovery centered on the Greater China region is occurring, supported by the effects of China's 'dual circulation' policy."

He continued, "With the expansion of the artificial intelligence (AI) device market, the benefits for PI films used in heat dissipation sheets are expected to continue."

He projected that sales and operating profit for the second quarter of this year will be 77.1 billion KRW and 17.1 billion KRW, respectively. He stated, "The effect of new supply of ultra-thin PI film is expected to be fully realized," and added, "With the scheduled launch of the iPhone 17 Air (tentative name) model in the second half of the year, PI Advanced Materials is expected to benefit from its ultra-thin PI film."

He explained, "Ultra-thin PI film is a product with high entry barriers that only two companies, including this company, can produce," and estimated that "its average selling price (ASP) is about 2.5 times higher than that of general PI film."

He forecasted that sales and operating profit for this year will be 274.9 billion KRW and 45.4 billion KRW, respectively, representing increases of 9% and 30% compared to the previous year. Researcher Kim emphasized, "Growth is expected thanks to the new supply of ultra-thin PI film and stable growth of heat dissipation sheets," and added, "Currently, the stock price is judged to be in an undervalued area with strong downside rigidity."