[Click e-Stock] "Fine M Tech Expected to Supply Foldable Parts to North America... Target Price Raised to 9,500 KRW"

On July 1, Hyundai Motor Securities released an analysis stating that Fine M Tech is at a turning point, shedding its previous sluggishness and entering a new phase of growth. Kim Jongbae, a researcher at Hyundai Motor Securities, commented, "It is time to move past the sluggish performance and embrace a new phase," and maintained a 'Buy' investment rating with a target price of 9,500 KRW.

Fine M Tech is a key supplier of backplates for foldable displays, with backplates accounting for approximately 80% of its sales as of last year. In particular, sales to North American clients are expected to expand significantly in 2026. As a result, next year's revenue is projected to increase by 55.3% year-on-year to 564 billion KRW, and operating profit is expected to surge by 597% to 29 billion KRW.

Kim emphasized, "Based on Fine M Tech's technological capabilities, the likelihood of entering new vendor relationships is high," adding, "The company also has various growth drivers, including medical device applications and future flexible glass."

Currently, Fine M Tech and a Chinese company are identified as the leading suppliers of backplates for the North American market. Kim assessed the company's competitiveness highly, stating, "Fine M Tech has a long track record of supplying to domestic strategic clients and has established technological moats through collaboration with panel customers." If Fine M Tech enters the North American backplate market, the average selling price (ASP) is estimated to be about 30-40% higher than the domestic ASP, and the company is expected to supply approximately 10 million units out of a total lifecycle volume of about 15 million units.

For foldable smartphone backplates supplied to domestic strategic clients, market share dropped from a monopoly to 85% in 2023 due to the entry of competitors. However, Fine M Tech still maintains a monopoly in book-type backplates. Kim forecasted, "This supply situation is unlikely to change significantly in the future."

Recently, the company's stock price has undergone continuous adjustment due to the entry of competitors for domestic clients, sluggish performance in the foldable series, and a decline in end plate sales caused by the electric vehicle (EV) chasm. However, Kim emphasized, "Considering Fine M Tech's core technological capabilities in backplates and its collaborative relationships with panel customers, the possibility of entering new vendor relationships is considered very high."