[Click eStock] "FineMT Could Achieve KRW 200 Billion in Second-Half Revenue from Apple Foldable... Operating Profit Up 1,238%"

FineMT, a foldable display component manufacturer, is projected to secure new growth drivers as Apple, following Samsung Electronics, enters the foldable market. With improved profitability in its foldable backplate business confirmed in its second quarter results, the company's performance is expected to accelerate even further in the second half of the year, as orders from both Samsung Electronics and Apple are reflected simultaneously.

According to Hanyang Securities on September 4, FineMT’s consolidated sales for the second quarter reached KRW 95.21 billion, up 24.4% year-on-year. Operating profit totaled KRW 7.33 billion, an increase of 38.6%. The entry into the mass production cycle of new foldable products and the stabilization of yields using new manufacturing methods contributed to both top-line growth and improved profitability.

By segment, sales of foldable backplates before internal transactions offset accounted for the largest share at KRW 73.2 billion. Sales from secondary battery and smart components were KRW 21.0 billion, and other segments contributed KRW 15.5 billion.

Notably, the company improved profitability even as it significantly increased investment in research and development. FineMT's R&D expenditure for the second quarter was KRW 5.2 billion, up 65.1% from the recent four-quarter average of KRW 3.15 billion. Hanyang Securities attributed this to proactive investment aimed at stabilizing mass production for next-generation backplate processes and advanced composite lamination technology applicable to foldable products in the second half.

Lee Junseok, a researcher at Hanyang Securities, stated, "The accelerated rollout of new foldable products and further improvements in the yield of new manufacturing methods will lead to even sharper growth in the second half."

Apple is considered the most significant growth driver for FineMT. Apple is expected to unveil its first foldable iPhone on September 9, local U.S. time. Hanyang Securities anticipates that from the second half of 2026, related component supply chain volumes will increase in earnest.

Since commercializing the world’s first foldable backplate in 2019, FineMT has supplied products for a range of form factors, including book-type and clamshell models. Its cumulative supply has surpassed 55 million sets. The company possesses advanced processing capabilities for materials such as SUS, carbon fiber reinforced plastic (CFRP), and titanium alloys, while also internalizing key processes such as etching, laser processing, nano-coating, and automated optical inspection (AOI).

Researcher Lee analyzed, "Given Apple’s emphasis on component quality and supply stability, FineMT’s established mass production track record, large-area laser processing capabilities, and production base in Vietnam will inevitably highlight its competitive edge."

If Apple's entry into the foldable market translates into real sales, FineMT’s revenues could expand significantly. Hanyang Securities projected Apple’s foldable shipments at 8 million units in 2026 and factored in a potential 20% increase in initial orders. As a result, backplate demand was estimated at around 9.6 million units, with a market size of approximately KRW 290 billion.

FineMT is expected to secure more than half of the total volume. Meanwhile, there are concerns that competitor LYI Tech may find it difficult to fully meet initial demand. Accordingly, FineMT’s actual supply share could surpass market expectations.

Researcher Lee said, “If additional supply orders are allocated, sales to Apple alone could contribute KRW 200 billion in the second half, with further upside depending on the scale of market share expansion.”

The recovery in Samsung Electronics' foldable business is also forecast to support improved results. Robust sales of the Galaxy Z8 series have increased backplate shipments to existing clients, while greater adoption of high-spec laser processed products is expected to raise both average selling prices and profitability.

Furthermore, the non-foldable business is also expected to maintain its growth. Sales of end plates for electric vehicles, which began mass production in 2023, continue to grow steadily, while end plates for ESS, which entered mass production in the fourth quarter of last year, are expected to be fully reflected in this year's results. Precision mechanical components for automotive electronics and smart devices are also anticipated to expand in application and customer base.

Reflecting these factors, Hanyang Securities forecasts FineMT’s consolidated sales for this year at KRW 392.17 billion, representing a 64.0% increase from the previous year. Operating profit is estimated at KRW 25.9 billion, a dramatic swing into the black and a surge of 1,238.5% from last year's KRW 1.93 billion. The annual operating margin is projected at 6.6%, with the margin for the second half, excluding the first-quarter deficit, expected to rise to 8.3%.

Especially in the third quarter, the simultaneous contribution of increased Galaxy Z8 series shipments and initial Apple orders is expected to drive record quarterly performance. With Apple’s foldable debut and further supply expansion in the fourth quarter, what was previously a seasonally slow period is now projected to deliver results close to peak season.

Researcher Lee concluded, “The structure will see Samsung driving higher peaks in third-quarter results and Apple raising the bottom of fourth-quarter results. As diversification of the customer base smooths out seasonality, FineMT’s results are set to transition from being concentrated in the third quarter to a high-growth second half overall.”

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