[THE INVESTOR] SKC Kolon PI’s operating profit ratio reached a record 27 percent in the second quarter and will continue to improve, said NH Investment and Securities on July 25, raising the target price to 33,000 won (US$29.55) from 25,000 won.

It beat market expectations with 44.4 billion won revenue and 12 billion won operating profit, as the sales share of higher-margin heat-radiating PI film rose to 34 percent from first quarter’s 28 percent, and newly expanded manufacturing line was successful in securing yield, said analyst Son Se-hun.

Its revenue in the third quarter will reach a record 53 billion won and operating profit ratio will be as high as 27.5 percent, forecast the analyst.
Its growth potential will expand further when flexible display is commercialized, added Son, maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)