[Alpha Biz=(Chicago) Reporter Kim Jisun] KT Submarine, acquired by LS Group, saw its stock price soar due to its record-high operating profit and surplus.

On the other hand, PI advanced materials succeeded in turning into a surplus, but stock prices fell as profitability fell short of market forecasts.

On the 24th, KT Submarine announced that it achieved sales of 17.9 billion won and operating profit of 5.5 billion won in the second quarter of this year. Sales grew 60% year-on-year and turned into an operating profit surplus. Operating profit in the second quarter of last year was 1.8 billion won in the red. According to the Korea Exchange, KT Submarine shares rose 12.04% from the previous trading day on strong earnings. Trading volume also surged 11 times, driving buying. Shares of KT Submarine have risen 90% this year.

Previously, LS Cable participated in KT Submarin's third-party allocation in October last year and signed a contract for a share purchase right (call option) to acquire additional shares in April this year. Along with the payment of the balance on the 16th of next month, it will become the largest shareholder with a 45.69% stake.

KT Submarine is expanding its submarine power cable business, which enables mutual cooperation after securing stakes in LS Cable & System. In January, the country's only underwater power cable installation ship was purchased from LS Cable & System to streamline assets and strengthen new growth engines.

On the other hand, PI Advanced Materials, the No. 1 global polyamide (PI) film market, succeeded in turning into a surplus in the second quarter, but its profitability fell short of market forecasts and its stock price fell. PI Advanced Materials announced on the 24th that its operating profit for the second quarter was 2.47 billion won. The company recorded its first operating loss since its foundation with an operating loss of 11.743 billion won in the first quarter of this year, but turned to the black in one quarter.

However, operating profit in the second quarter decreased by 80.9% compared to the same period last year. Sales fell 19.8 percent to 60.2 billion won during the same period, the report showed. Net profit for the current term was estimated to be 2.178 billion won, down 82.9%.

 

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