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.

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

• Both domestic and export sales increased, with export sales up 45.1% YoY and 61.4% QoQ.

Financial highlights

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

• 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, up 616.8% YoY, with OP margin at 24.0%.

• Net profit increased to KRW 13.5bn, up 518.9% YoY and 807.2% QoQ.

• Utilization rate improved to 63.7% in 2Q 2024.

Outlook and guidance

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

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

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

• Strategic focus on global expansion, especially in Europe and North America.