Sekyung Hi-Tech is showing strong performance. This is interpreted as being influenced by the news that it will exclusively supply the ‘FlipSuit Case’ for Samsung Electronics’ new foldable product, the Galaxy Z Flip5.
As of 10:03 AM on the 24th, Sekyung Hi-Tech is trading at 13,870 KRW, up 3.2% from the previous day.
According to industry sources, Sekyung Hi-Tech is supplying the ‘FlipSuit Case’ that can be applied to Samsung Electronics’ Galaxy Z Flip5. This product allows users to attach a ‘FlipSuit Card’ with near-field communication (NFC) technology to a transparent case, and the card image is animated on the cover screen’s ‘Flex Window’.
Samsung Electronics’ 5th generation foldable phone series has surpassed 1 million pre-orders, marking the first record for foldable phones and approaching the pre-sale volume of the Galaxy S23 series (1.07 million units).
Sekyung Hi-Tech was established in January 2006 as a film specialist company manufacturing and selling functional films. It expanded its business areas with PCPMMA in 2019 and special foldable protective films in 2020. Its major domestic and international clients include Samsung Electronics, Samsung Display, Oppo, and Xiaomi.
As Samsung Electronics’ foldable phones show high pre-sale volumes and continue unprecedented success this year, there is analysis expecting Sekyung Hi-Tech’s performance to improve. Sales are also expected to increase as the company sells not only special protective films but also cases. According to SK Securities, Sekyung Hi-Tech’s sales this year are expected to reach 328 billion KRW, and operating profit 36 billion KRW, increasing by 26% and 350% respectively compared to the same period last year.
Samsung Electronics also expects the sales volume of this series to easily surpass 10 million units, having achieved the highest pre-sale volume. Samsung anticipates global sales of Flip5 and Fold5 to be around 12 million units.
Lee Dong-joo, a researcher at SK Securities, said, “The combined domestic and overseas volume of foldable films is about 20 million units on a parts basis, increasing by more than 30% compared to last year,” adding, “Although prices will slightly decline, profitability will be maintained through the introduction of roll-to-roll equipment.”
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