PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩350 per share · Prices as of the 2026-10-02 close
PI Advanced Materials has moved from a 2023 operating loss to a sustained profit recovery on the back of improved pricing and product mix in high-value film, while heat-dissipation sheet demand softens and the company diversifies into robotics and aerospace.
2025 consolidated revenue reached KRW 263.4 billion with operating profit of KRW 43.0 billion, a clear recovery from the 2023 operating loss.
Second-quarter 2026 operating profit was KRW 23.0 billion, an operating margin of roughly 29.7 percent, up 63.6 percent quarter on quarter.
Expanding high-value ultra-thin film for flexible printed circuit boards drove margin gains, while heat-dissipation sheet revenue declined amid intensifying China-based competition.
Since joining the Arkema group in 2023, the company has expanded its global customer network and is diversifying into robotics, aerospace, AI semiconductors, and energy storage systems.
The debt ratio fell from 64.5 percent in 2023 to 30.9 percent in 2025, reflecting an improved financial structure.
PI Advanced Materials manufactures polyimide (PI) film, varnish, and powder/molded products, which together account for the large majority of its revenue.
Key applications are divided into flexible printed circuit board (FPCB) film, heat-dissipation sheet film, industrial process film, and EV battery insulation and motor varnish, with second-quarter 2026 segment revenue at KRW 34.3 billion for FPCB, KRW 21.3 billion for heat-dissipation sheet, and KRW 21.9 billion for advanced industrial applications.
FPCB revenue rose 16.2 percent year on year on demand for high-value ultra-thin film, and advanced industrial revenue grew 35.3 percent on industrial process and semiconductor-related film demand. Heat-dissipation sheet revenue, in contrast, fell 20.3 percent amid intensifying competition and softer demand.
The company is known as the capacity leader in the global polyimide film market, competing against DuPont of the United States and Toray and Kaneka of Japan.
In 2023, French specialty chemicals company Arkema signed a share purchase agreement to acquire a controlling stake, and the deal closed in December 2023, making Arkema Korea Holding the largest shareholder with a 54.07 percent stake.
Since joining Arkema, the company has been leveraging European and North American customer networks to broaden its sales regions and client base, with some analysis pointing to North American customers as a driver of recent price increases for ultra-thin film.
The company has stated a policy of expanding into new areas such as aerospace, robotics, and AI data centers, along with non-film product lines, to secure new growth drivers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩72.5B | ₩15.9B | 21.9% |
| 2025Q3 | ₩68.4B | ₩11.6B | 17.0% |
| 2025Q4 | ₩58.4B | ₩6.6B | 11.3% |
| 2026Q1 | ₩64.1B | ₩14B | 21.9% |
| 2026Q2 | ₩77.5B | ₩23B | 29.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩276.4B | ₩52.1B | ₩45.7B | 18.9% | 13.4% | 46.1% |
| 2023 | ₩217.6B | -₩3.9B | -₩1.8B | −1.8% | −0.6% | 64.5% |
| 2024 | ₩251.3B | ₩34.9B | ₩23.4B | 13.9% | 6.9% | 56.1% |
| 2025 | ₩263.4B | ₩43B | ₩30.4B | 16.3% | 8.6% | 30.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual results moved from KRW 276.4 billion in revenue and KRW 52.1 billion in operating profit (18.9 percent margin) in 2022 to a 2023 operating loss, with revenue of KRW 217.6 billion and an operating loss of KRW 3.9 billion (-1.8 percent margin), before recovering for two consecutive years to KRW 251.3 billion in revenue and KRW 34.9 billion in operating profit (13.9 percent margin) in 2024, and KRW 263.4 billion in revenue and KRW 43.0 billion in operating profit (16.3 percent margin) in 2025.
Owner net profit also swung from a loss of KRW 1.8 billion in 2023 to KRW 23.4 billion in 2024 and KRW 30.4 billion in 2025.
On a quarterly basis, revenue of KRW 72.5 billion and operating profit of KRW 15.9 billion in the second quarter of 2025 declined through the third quarter (KRW 68.4 billion revenue, KRW 11.6 billion operating profit) and fourth quarter (KRW 58.4 billion revenue, KRW 6.6 billion operating profit) amid seasonal weakness and softer demand.
Results then rebounded in the first quarter of 2026 to KRW 64.1 billion in revenue and KRW 14.0 billion in operating profit, and further to KRW 77.5 billion in revenue, KRW 23.0 billion in operating profit, and KRW 17.5 billion in net profit in the second quarter, up 21.0 percent, 63.6 percent, and 65.5 percent quarter on quarter, respectively.
The company attributed the improvement to higher average selling prices and foreign exchange effects.
The second-quarter 2026 operating margin of 29.6 percent was the highest since the second quarter of 2014, when it was 33.6 percent, with Samsung Securities attributing the strength to improved product mix and a lag between price increases and raw material cost pass-through.
The company itself flagged memory supply chain volatility and prolonged Middle East geopolitical risk as variables for its results.
Polyimide film is a heat-resistant, high-insulation material with limited substitutes, used across smartphone FPCBs, heat-dissipation sheets, semiconductor and industrial processes, and EV battery insulation.
In the smartphone market, some analysis points to rising demand for high-reliability, heat-resistant materials as foldable devices proliferate and hinge structures and internal wiring grow more complex.
The heat-dissipation sheet segment has seen softer demand amid cost pressure from Middle East geopolitical risk, intensifying competition among suppliers, and more conservative purchasing by Chinese customers.
The EV battery insulation and motor varnish segment has been affected by slowing EV market growth, though new energy storage system (ESS) revenue that began in the third quarter of 2025 is seen by some analysts as forming an alternative growth axis.
The competitive landscape includes global materials majors such as DuPont of the United States and Toray and Kaneka of Japan, alongside Chinese local producers, with PI Advanced Materials maintaining the world's largest position by production capacity.
However, in lower-barrier applications such as heat-dissipation sheets, price competition with Chinese producers has intensified.
The company has stated a strategy of strengthening competitiveness centered on high-performance heat-dissipation materials and flexible film for next-generation devices, while expanding into new areas such as aerospace, robotics, and AI data centers along with non-film product lines to secure new growth drivers.
In the brokerage community, the spread of foldable smartphones and the integration of internal wiring in robotic actuator systems are cited as factors structurally expanding demand for high-insulation, low-dielectric, heat-resistant materials.
Meritz Securities, in an April 14, 2026 report, set a target price of KRW 27,000, citing ultra-thin film price increases led by North American customers.
Samsung Securities, in an April 29, 2026 report, set a target price of KRW 31,000 with a buy rating, citing profit momentum from price increases and improved product mix.
However, following the second-quarter 2026 earnings release, Samsung Securities in a July 28, 2026 report lowered its 12-month forward earnings-per-share estimate by 7.6 percent, while still projecting annual profit improvement excluding the heat-dissipation sheet segment.
The company reaffirmed a strategy of minimizing cost increase impacts through efficient raw material procurement and inventory management, while strengthening market competitiveness centered on high-performance heat-dissipation materials and flexible film.
The share price appears to reflect the profit recovery process from a 2023 operating loss to profitability in 2024 and 2025.
Past brokerage reports have often observed the stock trading at a lower price-to-earnings multiple than global peers DuPont and Toray, which has been cited as a basis for relative valuation comparison within the materials sector.
On dividends, the company has stated a target cash payout ratio of 50 percent, but has not disclosed specific dividend plans ahead of record dates, which has been assessed as limiting predictability for shareholders.
The share price relative to net asset value appears to partly reflect expectations for profitability improvement during this recovery phase, and valuation judgments may vary depending on the pace of demand recovery in the heat-dissipation sheet segment and the progress of new business initiatives.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
The expanding share of high-value products such as ultra-thin FPCB film pushed the second-quarter 2026 operating margin to roughly 29.7 percent.
This reflects a combination of price increases and a lag in cost pass-through, while advanced industrial revenue also grew sharply on demand for industrial process and semiconductor-related film. Continued focus on high-value product sales could support margin stability.
The company has stated plans to expand into robotics, aerospace, and AI data centers along with non-film product lines. Since the third quarter of 2025, new revenue from energy storage systems has emerged, forming an axis that partly offsets EV market slowdown. Portfolio diversification to reduce smartphone dependence is underway.
The debt ratio fell from 64.5 percent in 2023 to 30.9 percent in 2025, and operating cash flow remained stable for three straight years at KRW 60.0 billion in 2023, KRW 55.1 billion in 2024, and KRW 78.3 billion in 2025.
Capital expenditure has been managed below the level of operating cash flow, keeping free cash flow positive. Financial stability has strengthened further since joining the Arkema group.
Second-quarter 2026 heat-dissipation sheet revenue was KRW 21.3 billion, down 20.3 percent year on year. Cost pressure from Middle East geopolitical risk, intensifying competition among suppliers, and more conservative purchasing by Chinese customers have been cited as causes.
Some analysis suggests recovery in Chinese heat-dissipation sheet demand will remain difficult in the second half.
There are indications that utilization rates, which fell amid downstream IT industry slowdown and intensified competition, have not readily recovered.
This has made fixed-cost management a new challenge, with concerns that revenue growth centered on high-value products may face limits to medium-term improvement unless utilization also improves.
The company has flagged memory supply chain volatility and prolonged Middle East geopolitical risk as result variables. Because price increases combined with a cost pass-through lag to temporarily lift margins, margins could decline again if raw material prices or currency conditions move in the opposite direction.
Recent margin improvement is attributed to a combination of price increases and a cost pass-through lag. If raw material prices rise again or currency movements turn unfavorable, the pace of margin improvement could slow. Cost volatility from prolonged geopolitical risk also persists.
Price competition with Chinese local producers is intensifying in relatively lower-barrier applications such as heat-dissipation sheets. Competition with major global materials companies such as DuPont, Toray, and Kaneka also continues, and shifts in the competitive landscape could affect pricing and market share.
Governance improvements have progressed since joining the Arkema group, but assessments have noted limited operation of separate board committees and a lack of disclosed dividend plans ahead of record dates, reducing predictability.
A target cash payout ratio of 50 percent has been stated, but specific implementation has not yet been formalized.
Third-quarter 2026 earnings are expected to be disclosed - a point to check whether heat-dissipation sheet demand recovers and how the high-value FPCB product mix trends.
Whether intensifying competition and demand softness in the Chinese heat-dissipation sheet market ease should be checked - a downside factor flagged by analysts such as Samsung Securities for the second half.
Disclosures of new customer wins or mass production contracts related to robotics, aerospace, and AI semiconductor businesses should be checked.
Whether brokerage estimates for 2026 full-year revenue and operating profit are revised up or down is a point to monitor.
PI Advanced Materials has extended its shift from a 2023 operating loss to a profit recovery into the first half of 2026, driven by improved high-value product mix centered on ultra-thin FPCB film and higher selling prices.
In contrast, the heat-dissipation sheet segment has seen declining revenue amid intensifying China-based competition and softer demand, highlighting a clear divergence across business lines.
Since joining the Arkema group in 2023, the company has been expanding its global customer network and diversifying into robotics, aerospace, AI semiconductors, and energy storage systems, signaling a direction for medium-term portfolio change.
Its financial structure has continued to improve, supported by a lower debt ratio and stable operating cash flow.
Brokerages generally share optimism about profit growth from price and mix improvement, while pointing to the timing of heat-dissipation sheet demand recovery and utilization rate improvement as key observation points.
Going forward, it will be important to comprehensively monitor earnings, progress in new business initiatives, and shifts in end-market supply and demand. This report is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.