[Click e-Stock] "Fine M Tech Expected to Achieve Mid- to Long-Term Earnings Growth... Target Price Raised"

Target Price Raised from 8,200 Won to 16,000 Won
Mid- to Long-Term Earnings Growth Expected on Foldable Market Expansion

On September 8, Meritz Securities announced that it expects Fine M Tech's earnings growth to continue in the mid- to long-term, and has raised its target price from 8,200 won to 16,000 won. The investment opinion remains 'Buy'.

Yang Seungsoo, an analyst at Meritz Securities, stated, "We have simultaneously reflected a 44.7% upward revision to the 2026 earnings per share (EPS) and an increase in the target multiple from 11.5 times to 15.3 times." He added, "The 15.3 times multiple corresponds to the average multiple assigned to KH Vatec from October 2019 during expectations for the opening of the Samsung foldable market. Currently, Fine M Tech is also benefiting from expectations regarding a North American set maker's entry into the foldable market, placing it in a similar environment to KH Vatec at that time."

Meritz Securities forecasts Fine M Tech's 2026 earnings at 606.8 billion won in revenue, up 164.9% year-on-year, and 44.6 billion won in operating profit, up 826.7%. Analyst Yang explained, "We assume that panel shipments to Fine M Tech's display customers will increase from 8.8 million units this year to 25 million units in 2026. By customer, we expect 12 million units for domestic set makers, 4 million units for Greater China, and 10 million units for North American set makers." He continued, "We are assuming a 60% market share for domestic set makers and a 70% share for North American set makers. If market share increases further, there is additional upside potential."

Meritz Securities believes Fine M Tech is capable of mid- to long-term earnings growth. Analyst Yang commented, "Fine M Tech's performance is not limited to short-term growth; we expect mid- to long-term growth as the company enters the second growth cycle for foldables." He explained, "This is because North American customers are expected to launch clamshell-type foldables in 2027 and large-area foldables in 2028, while domestic customers are also expected to diversify their lineups and introduce various new products such as slidable and rollable devices starting in 2026." He added, "Although the stock price has already surged in anticipation, considering the entry into the second growth cycle for foldables centered on North American set makers, there is potential for further price appreciation going forward."