이 기사는 2021년 04월 28일 07시38분 thebell에 표출된 기사입니다

PI Advanced Materials, the polyimide film maker owned by Glenwood Private Equity (Glenwood PE), has witnessed a large increase in cash flow thanks to its strong market position and an improvement in working capital management.

The South Korean company had cash and cash equivalents of 75.8 billion won ($68.3 million) at the end of 2020, more than 2.6 times the figure a year earlier. The improvement in cash flow was largely due to the company’s leading position in the global polyimide film market and more efficient working capital management.

PI Advanced Materials, formerly known as SKC Kolon PI, was acquired by Glenwood PE in March 2020. It held the largest market share of 31.2% by sales last year and has an annual production capacity of 3,900 tons – as much as three times greater than those of its rivals – which helped the company quickly respond to rising demand for polyimide film.

Polyimide films, which offer superior thermal stability and elasticity, are used in various industries such as aerospace, automobile and information technology. The polyimide film market is an oligopoly, led by a handful of companies including PI Advanced Materials, Japan’s Kaneka and US-based DuPont.

PI Advanced Materials has also diversified its product offerings, adding the lineup for 5G market and polyimide varnish for semiconductors and electric vehicle motors to its product portfolio.

With more diverse product offerings, PI Advanced Materials has stepped up efforts to improve working capital management. The percentage of inventory to total assets declined to 8.04% last year from 12.23% a year ago, increasing inventory turnover from 3.33 to 4.4 in the same period. Days of sales outstanding were also brought down from nearly 90 to less than 30.

As a result, the company’s working capital decreased by 19.6% in the past year, leading to an increase in cash flow. Its operating cash flow more than doubled to 80.9 billion won last year.

A US court decision in favor of PI Advanced Materials in a dispute with Kaneka over patent infringement is likely to help the company boost its sales in overseas markets. PI Advanced Materials recorded sales of 261.7 billion and operating income of 60 billion won in 2020, up 17% and 78.6% respectively year on year.

The Kosdaq-listed company is planning to transfer to the bigger Kospi market, which will likely be approved at a special shareholders’ meeting scheduled for May 21. Glenwood PE owns some 54% of the company. (Reporting by Ar-rum Rho)