PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩365 per share · Prices as of the 2026-10-02 close
KH Vatec, a core hinge supplier for Samsung's foldable phones, restored profitability in 2025 but saw results soften again in the first half of 2026, leaving diversification into automotive, robotics and AIDC parts as the key variable ahead.
FY2025 revenue rose 36.6% to KRW 424.9 billion and operating profit jumped 45.3% to KRW 31.8 billion, yet net income attributable to owners fell 4.3% to KRW 20.4 billion.
1Q26 results hit a yearly low (revenue KRW 55.1bn, operating profit KRW 1.7bn) before rebounding in 2Q26 to KRW 103.9bn/KRW 5.0bn, still below the year-earlier quarter.
Among Samsung's three 2026 foldable models, KH Vatec is first vendor for the Wide Fold and Z Flip8 while serving as second vendor for the Galaxy Z Fold8.
The company is diversifying into automotive parts (a 6-year, KRW 96.9bn display-bracket deal and a 5-year, roughly KRW 200bn moving-mechanism contract), robotics (53 Rainbow Robotics exterior parts) and AIDC components.
Kiwoom Securities, in a report dated September 30, 2026, cut its FY2026 estimates to KRW 372.6bn revenue and KRW 21.0bn operating profit, pushing meaningful new-business contribution out to 2027.
Founded in 1992 and listed on KOSDAQ in 2002, KH Vatec is a precision-parts maker whose core business is exterior hinge modules for foldable smartphones. The company built its industry position by supplying hinges on a near-exclusive basis to Samsung Electronics from its first foldable phone in 2019 through 2023.
In 2025, hinge (assembly module) sales reached KRW 253.9 billion, accounting for 60% of total revenue of KRW 424.9 billion. In a June 2026 report, SK Securities estimated the 2025 revenue mix at 57% foldable hinges, 11% ATM assembly, 11% communication parts, 6% automotive parts and 15% other.
Beyond hinges, the company also runs insert die-casting (IDC) using aluminum, titanium and magnesium, smartphone exterior casings, and ATM assembly.
It has more recently pursued diversification through EV battery end-plates, display brackets and cobot exterior casings, having signed a parts-supply agreement with robotics firm Rainbow Robotics in 2025.
In the hinge market, China's Huanli has emerged as a rival, and among the three 2026 new models, Huanli is first vendor and KH Vatec second vendor for the Galaxy Z Fold8, while KH Vatec is first vendor for the Wide Fold and Z Flip8. Listed peers in foldable components include Fine M-Tec, Sekyung Hitech and Dowoo Insys.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩136.5B | ₩11.6B | 8.5% |
| 2025Q3 | ₩168.4B | ₩14.1B | 8.4% |
| 2025Q4 | ₩58.5B | ₩2.4B | 4.0% |
| 2026Q1 | ₩55.1B | ₩1.7B | 3.1% |
| 2026Q2 | ₩103.9B | ₩5B | 4.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩363.9B | ₩32.5B | ₩24.8B | 8.9% | 10.8% | 50.3% |
| 2023 | ₩363.6B | ₩33.6B | ₩30.9B | 9.2% | 12.5% | 38.6% |
| 2024 | ₩311B | ₩21.9B | ₩21.3B | 7.0% | 8.1% | 47.6% |
| 2025 | ₩424.9B | ₩31.8B | ₩20.4B | 7.5% | 7.4% | 46.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Consolidated FY2025 revenue reached KRW 424.9 billion, up 36.6% from KRW 311.0 billion in FY2024, while operating profit grew 45.3% to KRW 31.8 billion as the operating margin improved from 7.0% to 7.5%.
However, net income attributable to owners actually fell 4.3% to KRW 20.4 billion from KRW 21.3 billion in FY2024, showing that the operating improvement did not fully flow through to the bottom line.
FY2023 delivered the strongest profitability of the past four years, with revenue of KRW 363.6 billion, operating profit of KRW 33.6 billion and a 9.2% operating margin, before FY2024 revenue and operating profit fell 14.5% and 35.0%, respectively.
By quarter, 3Q25 was the strongest of the recent four-quarter window, with revenue of KRW 168.4 billion, operating profit of KRW 14.1 billion and owners' net income of KRW 11.4 billion, reflecting strong Galaxy Z Fold7 sales.
Revenue then plunged to KRW 58.5 billion in 4Q25 with operating profit of just KRW 2.4 billion, a sharp seasonal pullback typical after a new-model launch. 1Q26 fell further to a yearly low of KRW 55.1 billion in revenue, KRW 1.7 billion in operating profit and KRW 0.3 billion in owners' net income; Daishin Securities noted in a May 2026 report that while Galaxy Z Fold7 sales momentum continued, weakness in the Galaxy A series and lower titanium sales caused results to miss prior estimates.
In 2Q26, revenue rose 88.6% quarter-on-quarter to KRW 103.9 billion and operating profit nearly tripled to KRW 5.0 billion, though both remained below the year-earlier quarter's KRW 136.5 billion and KRW 11.6 billion.
By contrast, 2Q26 owners' net income of KRW 3.1 billion actually exceeded the year-earlier KRW 2.0 billion, diverging from the operating-profit trend.
Annual operating cash flow fell from KRW 38.9bn/37.3bn in 2022-2023 to KRW 15.9bn/15.1bn in 2024-2025, indicating that cash generation has recovered more slowly than accounting profit.
Samsung Electronics has led the global foldable-phone market, and in 2026 it expanded its lineup to three models: the book-type Galaxy Z Fold8, the clamshell Z Flip8, and the 'Wide Fold'.
Samsung reportedly set a shipment target of 5-6 million units across the three foldable models this year, which is a relatively conservative figure compared with roughly 6 million units shipped last year.
Among the new models, the Galaxy Z Fold8 and Wide Fold are seen as holding the key to commercial success, while expectations for the Z Flip8 are low. Indeed, right after the July 2026 Unpacked event, the Galaxy Z8 series showed strong initial sales, lifting related component stocks broadly.
Samsung upgraded its hinge and display design to reduce the visible crease, thickening the ultra-thin glass (UTG) cover window to around 60 micrometers and applying 'Flex Titanium' display technology to the Z Fold8 and Fold8 Ultra.
In the hinge supply chain, Huanli gained significant share in 2024 by shipping more Z Flip6 hinges than KH Vatec, and the pattern of alternating first- and second-vendor status by model appears to be entrenched.
Separately, Apple's first foldable iPhone, expected in the second half of 2026, is cited as a factor that could expand the overall foldable market even though KH Vatec does not supply Apple directly.
Peer component makers Fine M-Tec, Sekyung Hitech and Dowoo Insys likewise see results tied closely to Samsung's new-model shipment cycle.
In a report dated September 30, 2026, Kiwoom Securities cut its FY2026 estimates for KH Vatec to revenue of KRW 372.6 billion (down 12% year-on-year) and operating profit of KRW 21.0 billion (down 34%).
The same report projected 3Q26 revenue of KRW 148.4 billion and operating profit of KRW 11.0 billion, down 12% and 22% year-on-year respectively, figures that are brokerage estimates and not yet confirmed disclosures.
Still, expecting automotive, AIDC and robotics businesses to become meaningful contributors from 2027, Kiwoom forecast 2027 revenue of KRW 425.6 billion (up 14%) and operating profit of KRW 30.8 billion (up 46%).
In automotive parts, a six-year, KRW 96.9 billion display-bracket supply deal is set to ramp up from 2026, and a roughly KRW 200 billion, five-year moving-mechanism (rollable hinge) supply contract for vehicles is scheduled to begin in 2027.
In robotics, the company signed an additional contract in January 2026 to supply 53 types of cobot exterior-casing parts to Rainbow Robotics, following earlier agreements in January and October 2025.
In AIDC, it is developing metal parts and high-heat-dissipation connectors for servers, planning mass production and expanded customer supply next year.
On target prices, Daishin Securities said in May 2026 it was lowering its target from KRW 18,000 to KRW 17,000, Shinhan Investment Corp said on June 17, 2026 it was raising its target from KRW 14,000 to KRW 17,000, and Kiwoom Securities said on September 30, 2026 it was cutting its target from KRW 17,000 to KRW 15,000.
KH Vatec tends to trade at a discount to book value; IBK Securities, in early 2025, applied a price-to-book multiple of 1.67x when setting its target price, and the multiple at which the stock has more recently traded sits below that level.
On an earnings-multiple basis, the company has been assessed as sitting in the middle of its foldable-component peer group: in a February 2026 report, Korea IR Service compared 2026 expected PERs, noting KH Vatec's 14.0x was similar to Fine M-Tec's 13.1x, higher than Sekyung Hitech's 9.8x, and lower than Dowoo Insys's 32.3x.
On dividends, the company has maintained a policy of annual cash distributions. However, with operating results softening in the first half of 2026 versus the prior year, the earnings multiple calculated on the trailing four quarters (3Q25-2Q26) has risen relative to the prior full-year basis.
How these valuation metrics should be read may shift depending on when new foldable-model sales are recognized and when automotive and robotics businesses begin contributing to profit.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
Samsung expanded its 2026 foldable lineup to three models—Galaxy Z Fold8, Wide Fold and Z Flip8—and KH Vatec secured first-vendor status for the Wide Fold and Z Flip8. Following the July Unpacked event, reports noted strong initial sales of the new models lifting related component stocks.
Apple's expected first foldable iPhone launch in the second half is also cited as a factor that could expand the overall foldable market.
Building on EV battery end-plates, the company has secured a six-year, KRW 96.9 billion display-bracket contract and a roughly KRW 200 billion, five-year vehicle moving-mechanism contract, broadening its automotive portfolio.
In robotics, it signed a deal to supply 53 types of cobot exterior-casing parts to Rainbow Robotics. It is also developing metal parts and high-heat-dissipation connectors for AIDC applications, continuing efforts to reduce its reliance on smartphones.
The debt ratio rose from 38.6% in 2023 to 46.6% in 2025 but remains below 50%. Owners' equity grew steadily from KRW 230.5 billion in 2022 to KRW 276.9 billion in 2025. The company has continued an annual cash dividend policy.
Hinge sales made up 60% of total 2025 revenue, reflecting heavy reliance on a single customer. For the high-volume Galaxy Z Fold8 in 2026, China's Huanli became first vendor while KH Vatec was relegated to second vendor.
Huanli had already gained share by shipping more Z Flip6 hinges than KH Vatec in 2024, suggesting this vendor-status shift could recur.
1Q26 revenue fell to KRW 55.1 billion, operating profit to KRW 1.7 billion and owners' net income to KRW 0.3 billion, a yearly low. 2Q26 recovered sequentially but remained below the year-earlier quarter.
Kiwoom Securities' September 30, 2026 report cut FY2026 estimates to KRW 372.6 billion in revenue and KRW 21.0 billion in operating profit, pushing meaningful new-business contribution to 2027.
While FY2025 operating profit rose 45% year-on-year, owners' net income fell about 4%, suggesting non-operating items or tax burden weighed on the net margin.
Operating cash flow also fell from the KRW 37-39 billion range in 2022-2023 to around KRW 15 billion in 2024-2025, lagging the pace of accounting-profit improvement.
Quarterly net income has also been volatile, and repeated episodes like 1Q26—where net income fell far more than operating profit—could reduce earnings predictability.
Because most revenue is tied to Samsung's foldable line, results are highly sensitive to new-model shipment volumes and vendor allocation. If competitors such as China's Huanli continue to gain share, vendor status and volume allocation could become less favorable.
Past brokerage reports have noted that FX pressure and rising development costs for automotive products weighed on quarterly results. There are also concerns that rising component costs such as memory prices could push up smartphone set prices and soften consumer demand more than expected.
Automotive, robotics and AIDC businesses remain at an early stage; even with disclosed contract sizes, the timing of actual revenue contribution depends on mass-production schedules (2026-2027) and the pace of customer expansion.
The possibility of contract renegotiation or schedule delays due to competition or technology changes cannot be ruled out.
Expected timing of 3Q26 earnings disclosure; worth checking how much the strong initial Galaxy Z Fold8/Wide Fold sales actually translated into revenue and profit. Note that Kiwoom's 3Q26 revenue estimate of KRW 148.4 billion remains a provisional forecast.
A period to check the initial sales response to Apple's first foldable iPhone and whether it expands the overall foldable-phone market.
A point to verify progress on the start of automotive display-bracket mass production and expansion of robotics parts supply to Rainbow Robotics.
Worth confirming whether AIDC metal-part/connector mass production begins and whether the moving-mechanism (rollable) business generates its first revenue.
KH Vatec is a component maker built around Samsung's foldable-phone hinges; FY2025 revenue and operating profit rose sharply year-on-year, improving profitability, but net income declined slightly, warranting attention to earnings quality.
In 2026, first-quarter results fell to a yearly low before recovering sequentially in the second quarter, though they remained below the year-earlier level. In the hinge business, alternating vendor status with China's Huanli across successive models remains a source of volatility.
The company is diversifying into EV parts, robotic exterior casings and AIDC metal components, and several brokerages expect these new businesses to become meaningful contributors from 2027.
It has maintained shareholder returns including dividends, and its financial structure remains managed with a debt ratio below 50%.
Ahead of any investment decision, it would be worth sequentially checking the upcoming 3Q earnings release, the market response to Apple's foldable iPhone, and the mass-production schedule of its new businesses.
Report written 2026-10-01 · Data as of 2026-09-30
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