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(Photo= PI Advanced Material Homepage) |
[Alpha Biz= Reporter Kim Minyoung] On the 8th, NH Investment & Securities forecasted that the performance of PI Advanced Materials would improve significantly from the second quarter onwards, driven by the recovery in smartphone demand and inventory accumulation by customers. In light of this, they upgraded their investment rating to "buy," and raised the target price from the previous 28,000 won to 33,000 won.
NH Investment & Securities stated, "The improvement in demand for smartphones, a leading industry, and the completion of inventory adjustments are expected. Sales growth of smartphones from major North American companies and in the Chinese market is anticipated in the latter half of this year," and further predicted, "This year's operating profit is expected to reach 39.7 billion won, up 26.5% from the previous forecast."
They added, "With the expansion of AI and replacement demand in the future, if the improvement trend in smartphone demand continues, gradual recovery of profitability will be possible."
In the first quarter of this year, PI Advanced Materials recorded an operating profit of 2.5 billion won, slightly below the consensus (average market expectations).
NH Investment & Securities analyzed, "In the second quarter, with expanded shipments to China and increased capacity utilization, PI Advanced Materials' operating profit is expected to reach 12.5 billion won, significantly exceeding market expectations."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
