[Click e-Stock] "Significance of FineMTech's Large-Scale Investment"

On November 19, Yuanta Securities analyzed that FineMTech's ongoing investments are preparations for a new major client.

On November 17, FineMTech announced its plan for a paid-in capital increase. The total number of shares to be issued is 6,038,935, which is equivalent to 16.04% of the total number of shares outstanding before the capital increase. The total amount is 57 billion KRW. The funds raised will be used for facility investments, acquisition of securities from other companies, and repayment of borrowings.

Kwon Myungjun, a researcher at Yuanta Securities, explained, "This year, FineMTech announced three investments related to foldable technology, totaling 53.5 billion KRW," and added, "Of the funds raised through the paid-in capital increase, 20 billion KRW will be used for foldable laser equipment and related facilities."

He continued, "Last month, the company invested 16 billion KRW to respond to the expansion of the foldable market and to increase ultra-precision laser production capacity," and added, "Previously, in July, the company also decided to invest 17.5 billion KRW to expand ultra-precision laser production capacity."

He introduced FineMTech as "a supplier specializing in built-in hinges for foldable smartphones," and explained, "The company supplies built-in hinges to both domestic and overseas clients." He emphasized, "A large-scale investment of over 50 billion KRW can be interpreted as preparation for a new major client."

Kwon further stated, "Considering the timing and scale of the investment, it is highly likely that the products for the new client will be delivered next year," and added, "By using laser drilling equipment for foldables to make precise holes in metal materials, the company can form microstructures more precisely compared to chemical etching." He continued, "This investment is expected to be for the next model," and explained, "We estimate that this will result in a continuous supply structure, rather than a one-time delivery."

This content was produced with the assistance of AI translation services.