PIAM Korea's Order Backlog for First Half Up 18.9% Year-On-Year
PIAM Korea's order backlog for the first half of the year was recorded at 42.4 billion won, an increase of 18.9% compared to the same period last year.
According to PIAM Korea on August 19, the increase in the order backlog during the first half was driven by the signing of new contracts in its core business sector, automotive electronics, as well as an expansion of order categories in the IT division. In April, PIAM Korea secured a large-scale order from a global automotive company. Additionally, with a major domestic IT value chain company, the firm not only increased orders for existing products but also signed supply contracts for two new items.
As orders increased, the company's performance has accelerated since the second quarter. Despite seasonality in the automotive electronics sector, PIAM Korea's consolidated sales and operating profit for the second quarter rose by 18% and 55%, respectively, compared to the same period last year. Given the nature of its core business, where sales are predominantly reflected in the third and fourth quarters, the recently secured supply contracts are expected to drive strong business results.
Beyond its main business, PIAM Korea is also advancing into new fields, such as humanoid robots and artificial intelligence (AI) data centers. In the humanoid robot field, the company has completed the development of a prototype for an ultra-compact reducer and is in talks with global companies regarding sample supply and mass production. PIAM Korea has begun its first supply of cooling solution materials for AI data centers to a global company based in the United States and is broadening its data center material portfolio through additional product orders.
The company has also secured investment resources to expand its new business ventures. PIAM Korea recently raised 40 billion won in investment, strengthening its capabilities in product development and mass production for high value-added industries such as humanoid robots and AI data centers. The company explained that, while establishing a stable performance base in its traditional core automotive electronics business, it aims to increase the proportion of revenue from new businesses, thereby securing mid- to long-term growth drivers.
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A PIAM Korea representative stated, "This year, we have confirmed an improvement in performance as early as the second quarter, sooner than in previous years, and we expect that the order backlog will translate into sales in the second half, contributing to annual business growth. We are expanding our mass production capabilities for MIM-based ultra-precision materials, which we have accumulated in our core business, into advanced industries. Backed by the recently secured funds, we plan to commence mass production for ultra-compact reducers for humanoid robots and further expand the supply of cooling materials for AI data centers."
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