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[Apha Biz=(Chicago) Reporter Paul Lee] PI advanced materials, the target has been lowered due to lower profit growth than before
Korea Investment & Securities maintained its "buy" opinion in consideration of the lower profit growth rate of PI advanced materials, but its target stock price fell to KRW 44,000.
"Although sales of polyimide (PI) films for FPCBs and heat-resistant sheets, which have dropped sharply since late last year, bottomed out and recovered, it is regrettable that flexible stock prices did not rebound due to a weaker-than-expected recovery," Korea Investment & Securities said on the 7th.
The estimated performance of PI advanced materials in the third quarter is 63.7 billion won in sales and 7.6 billion won in operating profit. The utilization rate is expected to rebound to around 70%. Next year's sales estimate was lowered by 16% from 336 billion won to 283 billion won. Operating profit estimates also fell 26 percent.
"The performance is lower than the level of 2021 when sales were at an all-time high in all applications, but more diverse applied products and increased production capacity than at the time will raise the growth forecast and valuation for the PI market," said Korea Investment & Securities.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
