PI Advanced Materials (178920) Q1 2025 earnings summary

Executive summary

• Achieved strong sales and margin growth in 1Q25, driven by demand recovery, restocking, and new product launches, especially in China.

• Specializes in PI films, varnish, powders, and molded products, with 99.9% of Q1 2025 sales from these products.

• Export sales led growth, with significant increases in FPCB and Graphite Sheet segments.

• Largest shareholder changed to Arkema Korea Holding in December 2023, holding 54.07% equity.

• No subsidiaries or affiliates as of the reporting date.

Financial highlights

• 1Q25 sales reached KRW 64.1bn, up 23.7% YoY and 16.3% QoQ.

• EBITDA rose to KRW 17.1bn (71.2% YoY, 54.9% QoQ), with margin at 26.7%.

• Operating profit increased to KRW 8.9bn (260.4% YoY, 231.0% QoQ), margin at 13.9%.

• Net profit was KRW 6.1bn, up 307.5% YoY, with net margin at 9.4%.

• Gross margin improved to 33.6% in Q1 2025 from 18.2% in Q1 2024.

Outlook and guidance

• 2Q25 expected to see higher sales and profitability, with new product sales and stronger demand in FPCB and Graphite Sheet.

• Ongoing investment in new PI varnish production line for EV applications, with completion extended to December 2028.

• Focus on expanding product portfolio and global market share, especially in high-growth sectors like EV batteries and flexible displays.

• Profitability uptrend to continue, supported by higher ASP and declining per unit costs.

• Ongoing focus on expanding product portfolios and sustainability initiatives.