[Click e-Stock] "Fine M Tech: North American Foldable Launch to Trigger Quantum Jump in 2026 Performance"

On December 10, Hanyang Securities projected that Fine M Tech will experience a "quantum jump" in performance as it enters the North American market in 2026.

Lee Junseok, a researcher at Hanyang Securities, stated, "The launch of foldable phones by North American set manufacturers in 2026 is the key structural variable that will determine the company's performance over the next three years," and assessed that "the growth momentum will become visible starting next year."

In the third quarter of this year, Fine M Tech recorded sales of 57.54 billion won, a 41.8% decrease year-on-year, while operating profit increased by 52.9% to 1.54 billion won. However, these results fell short of market expectations. Lee explained, "The decline in sales was mainly due to a drop in ASP following the removal of digitizers and an increase in competitors' market share." He added, "While the company maintained over 90% market share in flip models, it appears to have lost about 30% of its volume in fold models." However, he judged that this was not due to a structural weakening of competitiveness, but rather "a temporary strategic shift by its clients."

The increase in the company's R&D expenses is interpreted as preparation for future growth. He said, "The transition to backplate processing and proactive investment in laser processing ahead of the 2026 North American entry are key factors," and predicted, "Given competitors' limited capacity to expand, the company is increasingly likely to regain market share starting next year."

The supply of foldable products to North America in 2026 is cited as the core driver for a leap in performance. Lee estimated, "The initial shipment volume will be about 8 million units, with the company expected to supply approximately 6 million pieces," and anticipated, "At least a 50% market share can be secured." He also analyzed, "For North American backplates, there is a high possibility that ASP will rise by more than 20% due to an initial premium effect." The company has already completed a paid-in capital increase of 57 billion won and expanded its laser CAPA, establishing a mass production response system.

The company's technological competitiveness is considered its greatest strength. He noted, "Based on technology that meets all requirements for process stability, yield, and large-scale CAPA demanded by premium foldable product lines, not just simple metal processing, the company is solidifying its position as a key supplier." The company is also expanding beyond mobile. From 2026, a stable revenue base is expected to be established in non-mobile sectors such as ESS endplates and hinges for gaming devices.

There is analysis that 2026 will not just be a year of recovery, but a year of structural advancement. Lee described it as "the inaugural year of a 'quantum jump,' with expanded supply to new North American clients and market share recovery driven by process transitions among domestic clients occurring simultaneously." He forecast sales of 481.8 billion won next year (up 102.4% year-on-year) and operating profit of 37.5 billion won (up 637%). He evaluated that a turnaround and record-high performance are achievable.

He added, "Compared to its structural growth potential, the current stock price remains undervalued," and said, "A re-rating will accelerate once the North American entry and process transitions materialize."