[Click eStock] "Fine M-Tech, Foldable iPhone-Related Revenue Likely to Be Confirmed This Year"

On January 6, Yuanta Securities analyzed that Fine M-Tech is attracting market attention amid rising expectations for the launch of Apple's foldable iPhone. Although there have been several reports that the launch of Apple's foldable iPhone has been delayed from the originally expected October of last year to 2027, recent opinions are converging on a possible release this year. As a result, the outlook for Fine M-Tech's performance, as a supplier of the key internal hinge (metal plate) component for Apple's foldable device, is also improving rapidly.

There are three main competitive advantages that position Fine M-Tech as a strong candidate to supply internal hinges for Apple's foldable device: technological capability, mass production capacity, and the ability to handle large-format components. Kwon Myungjun, a researcher at Yuanta Securities, stated, "Companies that have stably supplied existing foldable smartphones are likely to be given priority opportunities, as stable supply translates into product reliability." He added, "Experience in supplying a variety of internal hinge products for a single device is important, and the company has been supplying internal hinges stably to both domestic and Chinese companies for several years."

Fine M-Tech is also evaluated as having differentiated competitiveness in terms of mass production capabilities. Researcher Kwon noted, "Apple typically prefers to source products from different fabs than those used by its existing suppliers, in order to avoid issues such as technology leaks. The company announced investments related to foldable devices totaling more than 50 billion won over three rounds last year." He continued, "Looking at the order trends from existing customers, it does not seem that additional factories are necessary. It is likely that these investments are in preparation for Apple orders."

The ability to handle large-format components is another reason Fine M-Tech is attracting attention. Since Apple's first foldable product is expected to be a book-type device, the capability to process metal plates larger than 7 inches is essential. Researcher Kwon explained, "Apple's first foldable product is expected to be book-type, which means metal plates larger than 7 inches, not just 5 inches, must be processed. We also expect larger products, such as a foldable iPad, to be released in the future." He added, "A company capable of handling large formats and continuously investing in R&D will likely be preferred. The company is already preparing products larger than 10 inches through R&D."

If Apple's foldable iPhone is released in the second half of this year, component supply will likely begin even earlier. Researcher Kwon projected, "For Apple's foldable device to be sold in the second half, component supply and assembly must begin one to two quarters in advance. In other words, revenue from Apple orders is likely to start as early as the second quarter of this year."

Expectations for revenue are also rising, as Fine M-Tech is likely to account for more than half of the metal plate supply for Apple's foldable iPhone. Researcher Kwon stated, "Based on the competitive advantages mentioned above, we believe the company is likely to secure more than half of the metal plate orders for the foldable iPhone."

The revenue estimates, calculated by applying sales volume and unit price, are also noteworthy. He explained, "Assuming 10 million units of Apple's foldable iPhone are sold (which translates to more than 11 million metal plates), and the unit price per plate is over $30 (about 40,000 won) as suggested by Ming-Chi Kuo, this would generate sales of 44 billion won at 100% share, 30.8 billion won at 70% share, and 22 billion won at 50% share from Apple orders alone."