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PI Advanced Material Jincheon Factory. (Photo= PI Advanced Material Homepage) |
[Alpha Biz= Reporter Kim Sangjin] LS Securities Raises Target Price for PI Advanced Materials Amid Profitability Recovery
LS Securities has increased its target price for PI Advanced Materials by 19.4%, citing a notable recovery in the company's profitability.
PI Advanced Materials reported a significant 616% increase in operating profit for the second quarter, reaching 17.7 billion won, surpassing market consensus by 32%.
Analyst Kim Kwang-soo highlighted that the company’s revenue surged due to completed long-term supply agreements for thermal interface materials with North American clients and a rebound in sales of flexible circuit board (FPCB) products in China. The improved profitability was attributed to increased production capacity (rising from 50% in Q1 to 64% in Q2), lower raw material costs, and a reversal of provisions.
Kim estimates that the operating profit for the third quarter will rise 301% year-on-year to 17 billion won. He anticipates continued growth in sales due to seasonal effects from major customers' new product launches.
As a result, LS Securities has adjusted its annual net profit estimate from 35.8 billion won to 42.8 billion won and raised the target price from 31,000 won to 37,000 won, while maintaining a "Buy" rating.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
