[Click e-Stock] "PI Advanced Materials Delivers Results Exceeding Expectations"

On May 8, BNK Investment & Securities maintained its "Buy" investment rating and a target price of 27,000 won for PI Advanced Materials, stating that the company's first-quarter performance had improved despite the recent decline in its stock price.

PI Advanced Materials announced its preliminary first-quarter results based on separate financial statements, reporting sales of 64.1 billion won and operating profit of 8.9 billion won. Sales increased by 24% and operating profit surged by 260% compared to the same period last year. Both sales and operating profit exceeded market consensus by 5% and 27%, respectively. This was attributed to a 19% quarter-on-quarter increase in FPCB sales and a 22% increase in thermal management sheet sales, thanks to rising mobile demand in China. In addition, sales of ultra-thin films for North American customers' slim phones were added from March.

BNK Investment & Securities forecast that PI Advanced Materials’ second-quarter sales and operating profit would reach 77.9 billion won and 18.6 billion won, respectively, representing year-on-year increases of 6% and 5%. Analyst Lee Minhee stated, "As mobile demand continues, sales of FPCB and thermal management sheets are expected to increase further. In particular, sales of ultra-thin films for new slim phone models from North American customers are expected to increase significantly, leading to improved profitability." Lee added, "Ultra-thin films are expected to contribute to a rise in ASP, as their average selling price is about twice as high as existing products."