1. What Happened?

Pino signed a KRW 6.1 billion NCM precursor supply contract with L&F. The contract period is two months (August 4, 2025, to October 13, 2025), representing 19.80% of Pino’s sales.

2. Why is it Important?

This contract is a significant signal of Pino’s growth potential in the new energy business. Securing a major client like L&F is expected to enhance business stability and foundation. It is also expected to contribute to short-term sales growth. However, the short contract period, Pino’s financial burden, raw material price volatility, and concerns regarding profitability and audits should be considered as risk factors.

3. What’s Next?

The growth of the electric vehicle and battery market provides a positive external environment for Pino. However, fluctuations in exchange rates and interest rates can affect raw material import costs, foreign exchange-related gains and losses, and interest expense burdens, requiring caution.

4. What Should Investors Do?

  • Check the possibility of securing a long-term supply contract. The possibility of further business expansion and securing a long-term contract with L&F is crucial.
  • Monitor the profitability improvement trend in the new energy business segment. It is essential to observe whether profitability improves along with sales growth.
  • Keep an eye on Pino’s efforts to strengthen its financial soundness. The company’s strategies and execution capabilities for mitigating debt ratios are important.
  • Check the transparency of audit-related issues. Focus on the transparency of information disclosure related to revenue recognition and inventory valuation.

In conclusion, while this contract is a positive sign, careful investment decisions are needed, considering both the short-term effects and potential risks.