[Click eStock] "Lake Materials Expected to Deliver Solid First-Quarter Results"

On April 28, Hana Securities analyzed that Lake Materials is expected to deliver solid results in the first quarter of this year.

Han Yugun, a researcher at Hana Securities, stated in a report released on this day, "Lake Materials' expected first-quarter results are sales of 37.5 billion KRW (up 21.6% year-on-year, down 16.2% quarter-on-quarter) and operating profit of 6.7 billion KRW (up 17.3% year-on-year, down 18.6% quarter-on-quarter, with an operating margin of 17.9%)." He added, "Considering that the first quarter is typically a seasonal off-peak period, the company is projected to post solid results."

The growth factors compared to the same period last year include increased shipments in the semiconductor materials and petrochemical catalyst divisions. In the semiconductor materials division, shipments are proceeding as planned.

Han noted, "Although quantitative growth is limited, the increase in demand for HBM, which commands relatively higher prices, is driving up shipment volumes. In addition, this year marks the first year that new materials which passed quality certification in 2024 will be supplied in earnest, so achieving approximately 94.9 billion KRW in sales should be attainable."

Furthermore, the petrochemical catalyst division is also steadily expanding its overseas business. Han explained, "For global customers in North America, verification for mass production application has been completed, and with full-scale shipments beginning in the first quarter, the contribution to results is expected to increase. For global customers in the Middle East, evaluation for new applications is currently underway."

Accordingly, sales from just the semiconductor materials and petrochemical catalyst divisions are expected to reach approximately 114.2 billion KRW, which is likely to drive overall sales growth.

The solar materials division may also serve as an additional growth factor. Han analyzed, "Last year, the solar materials division recorded negative growth due to factors such as increased market entry by Chinese companies, inventory build-up, and price declines. However, the burden is gradually easing as inventories are being depleted."

This year, sales in the solar materials division are expected to reach 41.2 billion KRW, an increase of about 18.7% compared to the previous year. He added, "While macroeconomic factors such as interest rates and tariffs could introduce volatility to the market, the overall trend is expected to focus on recovery."

The outlook for the company's full-year results remains positive. Han stated, "The forecast for 2025 remains unchanged, with sales of 168 billion KRW (up 21.1% year-on-year) and operating profit of 31.5 billion KRW (up 42.1% year-on-year). Despite the seasonal off-peak period, growth in the semiconductor materials and petrochemical catalyst divisions in the first quarter, as well as the expansion of new customers following product testing, are expected to accelerate sales growth from the first to the second half of the year."

He also emphasized, "With increased sales of premium products and inventory depletion leading to a relatively higher average selling price (ASP) compared to last year, expectations for record-high results this year remain unchanged."