NH Securities "Galaxy Z Fold2 Sales Expected to Perform Well... Increased Expectations for Benefits to Component Stocks"

"Good Sales Outlook Despite High Prices"
KH Vatec, Inox Advanced Materials, BH Mentioned

[Asia Economy Reporter Minji Lee] With the unveiling of Samsung Electronics' Galaxy Z Fold2 model, interest in related component companies is rising. On the 2nd, NH Investment & Securities predicted that the Galaxy Z Fold2 would show strong demand as it addresses the shortcomings of its predecessor, the Galaxy Fold, and enhances product completeness.

The Galaxy Z Fold2 is scheduled to be released on the 18th, with a price expected to be around $1,999 (approximately 2.4 million KRW) in the US, similar to its predecessor.

Major hardware spec changes include the cover and main displays expanding to 6.2 inches and 7.6 inches respectively, compared to 4.6 inches and 7.3 inches on the previous model. Additionally, a flex mode that allows adjusting the screen angle has been added through hinge reinforcement. When unfolded, the bezels, including the front camera, have become very thin, increasing immersion. Additional hardware features include a 12MP triple rear camera, a 10MP front camera, and a slightly larger 4500mAh battery compared to the previous model.

Although the market holds a skeptical view due to the high price, actual sales are expected to be similar to the previous model. The strong smartphone sales are likely to lead to stock price increases for related domestic component companies. Companies related to hinge reinforcement include KH Vatec and Fine Technics. The adoption of digitizers for pen functionality expansion is expected to benefit BH and Inox Advanced Materials. With the increased display area, DK T, BH, and Inox Advanced Materials are also expected to see improved performance.

Researcher Kyuhah Lee of NH Investment & Securities explained, “Although the price is high, its utility compared to existing smartphones is excellent, and currently, there is no competing product comparable to this. Attention should be paid to the increased cover display size and thinner bezels, which enhance completeness.”