PineMTech, Rising Expectations for Foldable Ecosystem Expansion in 2025

Sangsangin Securities forecasted on the 22nd that the expansion of the foldable ecosystem will mature by 2025 for Fine M Tech.

Fine M Tech is a manufacturer of precision mechanical parts for IT devices and automobiles. On September 1, 2022, its IT parts business was spun off from Fine Technics. The company produces ‘internal hinges’ for foldable display modules, ‘external hinges’ for foldable devices, and ‘EV fuel cell housings’, operating production facilities in Anyang/Hwaseong and a manufacturing subsidiary in the Que Vo Industrial Park, Bac Ninh Province, Vietnam.

Researcher Jung Min-kyu of Sangsangin Securities stated, “The poor shipment volume of major clients’ foldable lineups continues,” adding, “This affected the company’s weak third-quarter performance, which is its seasonal peak, and we expect sales of KRW 380.1 billion (up 0.01% YoY) and operating profit of KRW 4.6 billion (down 77.3% YoY) this year.”

However, as major clients are expected to diversify foldable smartphone form factors in 2025, future performance improvement is anticipated. In particular, with new form factors and enhanced AI software features, Fine M Tech is expected to benefit from the recovery of client market share amid the stagnant global foldable phone market growth.

Researcher Jung added, “Besides domestic clients, smartphone OEMs in the Greater China region are also building foldable phone lineups, and ecosystem expansion continued last year,” forecasting, “In 2025, expectations for North American set manufacturers entering the foldable IT device market will spread.”

He further noted, “Especially, related patent registrations and supply chain establishment for the launch of foldable smartphones in 2026 (tentative) are underway,” and predicted, “The market entry of these companies will become a new growth engine for the stagnant foldable phone market.”