PI Advanced Materials (178920) Q2 2024 earnings summary

Executive summary

• Achieved strong recovery in sales and profits in 2Q 2024, with significant year-over-year and sequential growth across key metrics.

• Specializes in PI (polyimide) films and related products, with 99.9% of sales from these items as of 2024 H1.

• Maintains global PI film market leadership since 2014, supplying to IT, automotive, and industrial sectors.

• Sales growth driven by robust demand for FPCB and graphite sheet applications, especially ahead of new smartphone and tablet launches.

• Major shareholder changed to Arkema Korea Holding in December 2023, holding 54.07% stake.

Financial highlights

• 2Q 2024 sales reached KRW 73.7bn, up 22.4% YoY and 42.3% QoQ.

• H1 2024 revenue: ₩125.5B, down from ₩217.6B in FY2023 and ₩276.4B in FY2022.

• EBITDA rose to KRW 25.8bn, up 159.9% YoY and 158.3% QoQ, with EBITDA margin improving to 35.0%.

• Operating profit surged to KRW 17.7bn in 2Q 2024, up 616.8% YoY, with OP margin at 24.0%.

• Net profit increased to KRW 13.5bn in 2Q 2024, up 518.9% YoY and 807.2% QoQ; H1 2024 net income: ₩15.0B.

Outlook and guidance

• Positive sales outlook for 2H 2024, with sustained demand from mobile and downstream industries.

• Ongoing investment in new PI varnish production line (3,000 tons/year) to meet EV market demand, with completion extended to Dec 2028.

• Adoption of on-device AI expected to drive replacement demand.

• Maintaining profit targets, with higher utilization and cost management initiatives.

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