PI Advanced Materials makes polyimide (PI) film, a thin, heat-resistant specialty film used inside electronic products, and holds the world's number-one share in film for flexible printed circuit boards (FPCB) that connect smartphone components and for heat-spreading sheets. In Q1 2026 it posted revenue of ₩64.1 billion and operating profit of ₩14.0 billion, with operating profit up 63% from a year earlier and 112% from the prior quarter, thanks to rising sales of high-value film such as ultra-thin grades under 10 micrometers. What stands out lately is that while demand from AI smartphones and electric vehicles continues, a growing mix of high-value products drives a rapid earnings recovery, but PI film is a material tied to the downstream IT and EV cycle, so if demand cools, utilization and earnings can wobble together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.1% lower than a year earlier.
- ROE is 8.6% (total-net basis). It is above the sector average.
- Operating margin is 16.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Arkema Korea Holding 54.07% (corporate)
Controlling bloc incl. related parties 54.18%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- PI Advanced Materials is a materials company focused on a single product, polyimide (PI) film.
- PI film is a high-performance plastic film that is heat-resistant and can be made extremely thin.
- Revenue comes largely from two areas.
- One is film for flexible printed circuit boards (FPCB), used at the connecting and folding points inside smartphones and wearables.
- The other is film for heat-spreading sheets (graphite sheets) that disperse heat broadly within a device.
- On top of these come advanced-industry sales such as EV battery insulation and semiconductor-process applications.
- The company is the global number one in this field with over 30% market share.
- At the end of 2023, French chemicals firm Arkema acquired the largest shareholder's stake, so it is now an Arkema subsidiary, while about 46% of the shares remain listed on the domestic market.
- The share price is in a recent pullback.
- The closing price of ₩17,770 sits below the 20-day (₩20,633), 60-day (₩24,192), and 120-day (₩21,887) averages.
- The one-month return of -17% and three-month return of -19% show large short-term declines.
- On a six-month basis, however, it is up 14%, a pattern of rising first and then retracing.
- The RSI (an indicator that weighs recent up-force against down-force on a 0-100 scale) is 35, on the side close to oversold.
- The price sits roughly 43% below its 52-week high.
- On the chart it helps to read trading volume together with filing dates.
- Let us separate valuation from profitability.
- On last year's (2025) earnings, the P/E ratio (how many times one year's earnings the price represents) is 17.2x and the P/B ratio (how many times book equity the price represents) is 1.5x.
- Because 2023 was a loss year and this is an early-recovery period, the multiple on last year's earnings looks somewhat high.
- Profitability is solid.
- The operating margin is 16.3%, higher than ordinary plastic processing.
- ROE (how much it earns in a year on equity) is 8.6%.
- The balance sheet is stable.
- The debt ratio (debt to equity) was in the 130% range but the firm reduced short-term debt to cut interest costs, and as of Q1 it fell to 33%.
- The current ratio is 249%, giving ample short-term liquidity.
- Reflecting debt makes the picture better still.
- Net debt (total borrowings less cash) is effectively near zero, close to a net-cash position.
- The FCF yield (cash actually earned relative to market cap) is high at 12.7%, so the firm has room to cover dividends and investment from the cash it generates.
- Earnings show a clear recovery trajectory.
- Revenue fell from ₩301.9 billion in 2021 to ₩217.6 billion in 2023, sliding into a loss (operating loss of ₩5.6 billion).
- It then returned to profit in 2024 and in 2025 posted revenue of ₩263.4 billion and operating profit of ₩43.0 billion.
- 2025 operating profit rose 27% and net profit 36% from a year earlier.
- The quality of the recovery is clearer in 2026.
- Q1 revenue was ₩64.1 billion, roughly flat with a year ago, but operating profit rose 63% and net profit 83%.
- The key is that earnings jumped sharply while revenue did not.
- The cause is product mix.
- The share of high-value products such as ultra-thin film under 10 micrometers and black film has risen to 34% of FPCB revenue.
- A weak won also helped earnings.
- Downstream demand is anchored in the adoption of thin film in AI smartphones and expansion into EV battery use.
- If this high-value-led trend continues in the remaining quarters, this year's net profit could reach around ₩40 billion, above last year's ₩30.4 billion.
- Dividing market cap by this estimated profit gives a forward multiple of about 13x, lower than the 17x on last year's earnings.
- The flows confirmed through filings run along two axes, earnings and governance.
- In an April 2026 earnings filing, preliminary Q1 results came in at operating profit of ₩14.0 billion, far above market expectations.
- The same month, the company held two investor presentations (IR) to explain the earnings background and business direction.
- In March there was a regular shareholders' meeting and a change of CEO.
- Earlier, at the end of 2023, France's Arkema acquired the largest shareholder's stake (about 54%), making the company an Arkema subsidiary, while the remaining shares stayed listed.
- This acquisition connected the firm to a global materials group's sales network and research infrastructure, a change to the medium-term business foundation.
- Start with the strengths.
- PI Advanced Materials is the world's number-one materials company in this field.
- As the share of high-value ultra-thin film rises, it has shown a structure in which earnings jump even without large revenue growth.
- Net debt is effectively near zero and cash generation (FCF yield 12.7%) is good.
- The multiple on last year's earnings looks high, but with the earnings recovery underway it drops to a mid-range level among peer materials stocks on a forward basis.
- The cautions are equally clear.
- PI film is a material tied to the downstream IT and EV cycle.
- If smartphone and EV demand cools, utilization falls and earnings can wobble with it.
- ROE of 8.6% is lower than some peer materials stocks, so capital efficiency still has room to improve.
- Q1 earnings also carried an FX effect, so if the exchange rate reverses, earnings could narrow accordingly.
- In sum, it is strong while high-value mix expansion and downstream demand continue, and weak when the downstream cycle turns down.
🔎 Valuation vs peers Fairly valued
Viewed as a high-value electronic material used in smartphones, EVs, and semiconductors rather than simple rubber or plastic, and compared with listed electronic-materials peers in polyimide, OLED, and specialty chemicals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Innox Advanced Materials | 7.37x | 1.09x | 1480.00% |
| Duksan Neolux | 13.35x | 1.57x | 1180.00% |
| Hansol Chemical | 18.76x | 2.56x | 1360.00% |
The P/E of 17.2x on last year's earnings is on the high side within the peer set. But this reflects earnings in the early recovery from the 2023 loss, which makes the multiple look inflated. On a forward basis reflecting the Q1 surge, it falls to about 13x, sitting between Innox Advanced Materials (7.4x) and Soulbrain (18.8x). The P/B of 1.5x is also mid-range within the peer set. ROE of 8.6% is lower than Innox, Duksan Neolux, and Soulbrain (11-15%), so on capital efficiency there is a case that a premium is hard to justify. On the other side, the world number-one materials position, net cash, and high FCF yield are factors that check any discount. On balance, strengths and weaknesses offset, and we judge the current position a fair range, neither excessively undervalued nor excessively overvalued.
Price history Close · MA20 · MA60
The latest close is ₩17,770 and the market capitalization is ₩521.8 billion. The price sits below its 20-day moving average (₩20,633) and below its 60-day moving average (₩24,192). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 35.3, a neutral level. The one-month change is -17.3%, the three-month change is -18.9%, and the position relative to the 52-week high is -43.1%. Relative strength versus the KOSPI is 34 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 33% of all stocks. Over the past three months it lagged the index by 36.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -36.68% / 6M -30.29% / 12M -59.65%
Key metrics vs sector median
Valuation
The P/E of 17.17x is above the sector median (12.90x). The P/B of 1.47x is above the sector median (0.75x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 8.6%, above the sector average (6.0%). The operating margin is 16.3%. The debt ratio is 130.9%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $144.2M | $166.6M | $174.6M | +4.83% ↓ slower |
| Operating profit | -$3.7M | $22.4M | $28.5M | +27.23% |
| Net profit | -$2.3M | $14.8M | $20.1M | +36.43% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $200.1M | $183.2M | $144.2M | $166.6M | $174.6M |
| Operating profit | $50.3M | $34.6M | -$3.7M | $22.4M | $28.5M |
| Net profit | $42.4M | $30.3M | -$2.3M | $14.8M | $20.1M |
| Revenue CAGR | 4-yr avg -3.35% | ||||
Revenue rose 4.8% year over year (2023 ₩217.6 billion → 2024 ₩251.3 billion → 2025 ₩263.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 27.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.4%. The two-year revenue CAGR is 10.0%. In the most recent quarter (Q1 2026), revenue was 0.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-28EarningsQ1 2026 preliminary operating results disclosure - revenue ₩64.1 billion, operating profit ₩14.0 billion (operating profit up about 63% year on year). A larger mix of high-value ultra-thin film and an FX effect drove the earnings improvement.Confirms that earnings rose sharply amid flat revenue, with the product-mix improvement supporting forward earnings (medium-term positive). Source
- 2026-05-14FilingQ1 2026 quarterly report - revenue ₩64.1 billion, operating profit ₩14.0 billion, net profit ₩10.6 billion confirmed. A lower debt ratio versus a year earlier is also reflected.Formal confirmation of the preliminary results and the balance-sheet improvement (falling debt ratio) (medium-term positive). Source
- 2026-04-27IRNotice of investor presentation (IR) - disclosure of the IR schedule to explain Q1 results and business direction.A venue for the company to explain high-value products and downstream demand, serving as a channel to confirm the earnings background (short-term neutral to positive). Source
- 2026-03-20FilingRegular shareholders' meeting results and CEO change disclosure - handling of board and management agenda items and a change of CEO.A matter of governance and management realignment following the Arkema subsidiary integration, a factor for gauging continuity in the medium-term business direction. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue ₩64.0 billion / operating profit ₩14.1 billion (base) | revenue ₩64.1 billion / operating profit ₩14.0 billion | Confirmed | link |
| FY2025 full-year operating profit | ₩43.0 billion(+27.2% YoY) | ₩43.0 billion | Confirmed | link |
| Largest-shareholder structure | — | 2023 approx. 54% | Confirmed | link |
| 2026 full-year net profit estimate | approx. ₩40.0 billion(self-estimate, forward PER approx. 13x) | — | Unverified | — |
Recent filings
- 2026-05-28Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-04-28EarningsFair-disclosure notice
- 2026-04-27Disclosure
- 2026-04-27Disclosure
- 2026-04-24EarningsEarnings disclosure
- 2026-03-20Disclosure
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-05Amended filing
- 2026-03-04Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.