[Asia Economy Reporter Hyungsoo Park] FineTec is showing strong performance. Securities firms' analysis that the company is undervalued compared to its technological capabilities in foldable organic light-emitting diode (OLED), secondary batteries, and virtual reality (VR) appears to have influenced its stock price.
As of 11:31 AM on the 13th, FineTec is trading at 1,530 KRW, up 6.25% from the previous day.
Research AlEum has set FineTec's target price at 2,070 KRW.
Senior Researcher Donghyun Lee of Research AlEum stated, "Next year’s mobile OLED shipments are expected to reach 812 million units, a 39% increase compared to this year," and added, "With new investments by Samsung and LG Display becoming visible, orders are expected to increase."
He continued, "FineTec developed the world's first foldable bonding equipment and is currently supplying it to Samsung Electronics," and assessed, "We expect external growth due to the rapid increase in foldable phone shipments." Furthermore, he emphasized, "Most foldable smartphones released worldwide are manufactured using FineTec equipment," and explained, "The flexible panel bonding process requires design considering elongation expansion and stretching, demanding excellent precision."
FineTec continues to secure orders by meeting precision requirements. The researcher emphasized, "We supply bonding equipment to 95% of foldable phones," and "We deliver foldable panel equipment to Samsung Display."
He analyzed, "We supply rolling post-process equipment to Samsung SDI, generating about 5 billion KRW in annual sales," and added, "By supplying secondary battery equipment to Samsung SDI’s supply chain, orders are expected to increase following Samsung SDI’s announcement to expand its electric vehicle battery plant in Hungary." Samsung SDI announced an expansion of its electric vehicle battery plant in Hungary with an investment of approximately 1 trillion KRW.
FineTec’s secondary battery sales proportion is expected to expand to over 50% in the future. This year’s secondary battery equipment sales are estimated to be between 20 billion and 30 billion KRW. The researcher said, "Following the acquisition of a patent for an electrode transfer device for secondary battery manufacturing in May, we disclosed patents for edge and terminal pressing systems," and added, "A steep expansion of the secondary battery division is anticipated."
He judged, "We completed supply tests for 'contactless elevator control panels' with domestic elevator manufacturers and will enter the metaverse market such as VR and AR (augmented reality) in the future."
He added, "In addition to contactless touch technology, we have completed development of various CTS products including holographic and gesture solutions," and said, "Hologram technology enables virtual reality without glasses or other devices, and various applications are expected in the future."
FineTec is estimated to achieve sales of 114.1 billion KRW and operating profit of 6.8 billion KRW this year. Sales are expected to increase by 40.3% compared to last year. Operating profit is expected to turn positive.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
