[Click e-Stock] "Fine M Tech Expected to See Rapid Growth in 2026... Target Price 16,000 Won"

On October 21, Meritz Securities stated that Fine M Tech is expected to experience rapid growth in 2026, driven by expansion in the foldable segment, and that its fundamentals remain solid. The company maintained its "Buy" investment rating and a target price of 16,000 won.

Yang Seungsoo, a researcher at Meritz Securities, commented, "As market attention shifts to beneficiaries of the AI and memory upcycle, Fine M Tech's stock price has corrected by 32.4% from its peak. However, given the anticipated rapid growth in 2026 based on foldable expansion, the fundamentals remain robust."

Yang projected that Fine M Tech's consolidated sales for the third quarter of this year will be 57.3 billion won, a 42% decrease year-on-year, but operating profit will rise by 56.3% to 1.6 billion won. He explained, "Although sales are expected to be somewhat sluggish due to a decline in market share and a drop in average selling price (ASP) despite the success of new foldable products, the company is expected to maintain profitability thanks to improved yield rates."

He also stated, "In 2026, display panel shipments by key customers are expected to increase from 8.8 million units in 2025 to 25 million units. Since there are no changes to key assumptions such as Fine M Tech's market share and ASP, we are maintaining our estimates for 2026 sales and operating profit."

Regarding concerns raised by some about delays in the launch of new foldable products by major North American clients, he said, "As of now, the plan to launch in 2026 is proceeding smoothly. In response, Fine M Tech announced on October 20 its second investment in new UV laser equipment, further strengthening its production capacity."

Next year, not only major North American clients but also major domestic clients are expected to adopt laser-drilled metal plates, making the recovery of market share among domestic clients a key momentum driver.

He added, "Amid intensifying competition with Chinese parts and materials companies, very few domestic parts and materials companies can enter the market with high market share at the layer level. As the launch of foldable models by major North American clients becomes more concrete in the future, Fine M Tech's value will become increasingly prominent."