PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
BH is building new growth pillars in foldable iPhone and robotics FPCB, but one-off costs and margin volatility revealed in its second-quarter 2026 results remain an ongoing challenge.
Revenue grew from 2022 to 2025, but operating margin fell from 7.8% to 3.0% over the period.
Provisional second-quarter 2026 operating profit of KRW 7.9 billion was about half of the year-earlier level and missed consensus.
With Samsung Display holding exclusive supply of foldable iPhone displays, BH is assessed to hold a high share of the associated FPCB supply.
The robotics/humanoid FPCB business is in an early stage of expanding its customer base, including Samsung Electronics via Boston Dynamics Atlas-related supply.
After the second-quarter results, brokerage target prices diverged sharply, reflecting widening differences in earnings expectations.
BH is an IT component maker whose core business is flexible printed circuit boards (FPCB), supplying FPCBs for smartphones, tablets, display modules and camera modules mainly to Samsung Display.
Samsung Display is its largest customer, which links BH indirectly to the smartphone and tablet supply chains of Samsung Electronics and Apple.
Its subsidiary BH EVS runs the automotive and mobile wireless-charging business, and the subsidiary acquired LG Electronics' automotive wireless-charging unit, securing global automakers such as GM, Honda and Land Rover as customers.
In terms of competitive positioning, Interflex is cited as a rival within the same Samsung Display value chain, and its results were reportedly hurt after the digitizer component was removed from the Galaxy Z Fold7.
More recently, BH has been diversifying beyond mobile-centric business into OLED for tablets and notebooks, automotive electronics, and robotics FPCB.
In robotics, BH is understood to have secured Samsung Electronics as a customer through Boston Dynamics Atlas-related supply, and is pursuing additional global humanoid robot customers.
Overall, BH's business structure combines high dependence on specific customers such as Samsung Display and Apple with an ongoing attempt to expand into new application areas including automotive electronics and robotics.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩389.7B | ₩16B | 4.1% |
| 2025Q3 | ₩562.5B | ₩34.5B | 6.1% |
| 2025Q4 | ₩508B | ₩28.8B | 5.7% |
| 2026Q1 | ₩371.6B | ₩10.7B | 2.9% |
| 2026Q2 | ₩414.2B | ₩7.9B | 1.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.7T | ₩131.3B | ₩143.9B | 7.8% | 25.7% | 74.3% |
| 2023 | ₩1.6T | ₩84.8B | ₩90.7B | 5.3% | 14.2% | 67.4% |
| 2024 | ₩1.8T | ₩87.1B | ₩67B | 5.0% | 9.4% | 78.1% |
| 2025 | ₩1.8T | ₩54B | ₩31B | 3.0% | 4.1% | 73.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On an annual basis, revenue fell from KRW 1.6811 trillion in 2022 to KRW 1.592 trillion in 2023, then recovered to KRW 1.7544 trillion in 2024 and KRW 1.7927 trillion in 2025.
Operating profit, however, moved in the opposite direction, declining from KRW 131.3 billion (7.8% margin) in 2022 to KRW 84.8 billion (5.3%) in 2023, KRW 87.1 billion (5.0%) in 2024, and KRW 54.0 billion (3.0%) in 2025, showing a steady erosion in profitability even as revenue recovered.
Net income attributable to owners also fell sharply from KRW 143.9 billion in 2022 to KRW 31.0 billion in 2025, and notably in 2023 owners' net income (KRW 90.7 billion) exceeded operating profit (KRW 84.8 billion).
Quarterly results peaked in the third quarter of 2025 with revenue of KRW 562.5 billion and operating profit of KRW 34.5 billion, before moderating in the fourth quarter of 2025 to revenue of KRW 508.0 billion and operating profit of KRW 28.8 billion.
The first quarter of 2026 saw seasonally weaker revenue of KRW 371.6 billion and operating profit of KRW 10.7 billion, while owners' net income of KRW 22.3 billion exceeded operating profit, likely reflecting non-operating items.
Provisional second-quarter 2026 results showed revenue of KRW 414.2 billion, up year on year, but operating profit of only KRW 7.9 billion, roughly half the KRW 16.0 billion recorded a year earlier, with owners' net income of just KRW 2.6 billion.
The company disclosed that these provisional figures may change pending external auditor review.
Market commentary attributes the second-quarter margin weakness to one-off costs from relocating production lines to Vietnam and continued losses in the IT OLED segment, while material input for foldable iPhone FPCB began in the third week of May but revenue recognition reportedly fell short of plan, further weighing on profitability.
Korea's PCB and FPCB industry, after enduring quarterly losses amid weak IT demand, is assessed to have entered a recovery phase since the second half of 2025.
Samsung Display, BH's core downstream customer, is part of a total KRW 140 trillion investment plan announced for the Chungcheong region, with Samsung Display's own allocation reaching KRW 67 trillion—nearly half the total—to be invested in upgrading existing Asan facilities and building new OLED lines.
The 8.6-generation IT OLED line at Asan A6 recently began full-scale operation, and the company has left open the option of adding IT OLED production capacity at A7 as well.
This expanded investment is viewed as linked to production volume growth for component and material suppliers, including hinge suppliers and BH, which supplies display FPCB.
In the foldable OLED market, Samsung Display is seen as holding an edge in market share and quality outside China, while Apple's entry into foldable phones is expected to widen the addressable market.
Within the same value chain, Interflex is a competitor, and there have been cases where a customer's specification changes—such as the removal of the digitizer from the Galaxy Z Fold7—directly affected an individual supplier's results.
Over the longer term, a new application area in robotics and humanoid FPCB is emerging, though vendor registration and order volumes are still being finalized at an early stage.
Brokerage estimates for 2026 performance show considerable variation depending on timing.
KB Securities, in an October 2025 report, projected 2026 revenue of KRW 1.85 trillion and operating profit of KRW 124.2 billion (6.7% margin), citing narrower IT OLED losses and the foldable iPhone launch as the key drivers of a rebound.
Daishin Securities, in a May 2026 report, estimated second-half operating profit of KRW 99.1 billion and full-year operating profit of KRW 123.7 billion, while Meritz Securities, in a report from the same month, lowered its 2026 revenue and operating profit estimates to KRW 1.9417 trillion and KRW 107.2 billion respectively, reflecting weaker profitability at the BH EVS unit and one-off labor-related costs.
Following the second-quarter results, Kiwoom Securities lowered its 2026 operating profit estimate to KRW 90.2 billion, and some other brokerages also cut estimates to reflect cost pressure and delayed foldable shipment volumes.
Third-quarter foldable FPCB supply volume was reportedly reduced from an initial 4-5 million units to about 2.5 million units, with the remainder expected to shift into the fourth quarter.
In robotics, BH is understood to have secured Samsung Electronics as a customer through Boston Dynamics Atlas-related supply, and Daishin Securities analyst Park Kang-ho said he expects additional global humanoid customer wins and a share price rebound tied to news of new customers in September.
The market views the timing of the robotics vendor registration decision and the fourth-quarter read on actual foldable iPhone sales as key junctures for further revisions to earnings estimates.
The share price tends to trade at a discount to net asset value, and the price-to-earnings ratio based on the most recent four quarters sits near the lower end of the valuation band seen during past earnings-recovery phases.
The dividend yield is below the electronics-components sector average, consistent with a policy that has prioritized growth investment over shareholder returns.
Revenue recovered between 2022 and 2025, but operating margin fell steadily over the same period, and margin recovery was not yet clear in the first half of 2026, leaving the market divided on the quality of earnings.
The wide dispersion in brokerage target prices after the second-quarter results reflects differing views on the timing and scale at which the foldable and robotics businesses will be reflected in earnings.
Ultimately, the direction of valuation is likely to hinge on whether second-half foldable volumes materialize as guided and how quickly the robotics business converts into actual revenue.
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 2026-09-04
With Samsung Display holding exclusive supply of foldable iPhone displays, BH's FPCB average selling price for foldable models is estimated at more than double that of standard iPhone FPCBs. KB Securities expected this exclusive supply structure and high ASP to boost earnings contribution.
Initial volume recognition has lagged plan, but forecasts point to expanding volumes through the second half and into 2027.
Samsung Display was allocated KRW 67 trillion of a KRW 140 trillion Chungcheong-region investment plan to upgrade existing Asan facilities and add new OLED lines. The 8.6-generation IT OLED line at Asan A6 has already begun operating, and A7 remains open as an option for IT OLED production. This is viewed as linked to volume expansion for BH, which supplies display FPCB.
BH is understood to have secured Samsung Electronics as a robotics-segment customer through Boston Dynamics Atlas-related supply. Daishin Securities highlighted the possibility of securing additional global humanoid robot customers.
Wireless-charging module technology from automotive subsidiary BH EVS is also cited as having potential robotics applications, forming another pillar of diversification.
Revenue fluctuated but ultimately recovered from 2022 to 2025, yet operating margin steadily fell from 7.8% to 3.0%. In the provisional second quarter of 2026, revenue rose again but operating profit was only about half the year-earlier level. A pattern in which revenue growth does not translate directly into profit growth has recurred.
BH's results are directly exposed to changes in the sales and specifications of specific Samsung Electronics and Apple models through its main customer, Samsung Display. Indeed, the removal of the digitizer from the Galaxy Z Fold7 negatively affected Interflex's results within the same value chain.
The reduction of third-quarter foldable FPCB supply volumes from the initial plan also illustrates the risk inherent in dependence on specific models and customers.
After second-quarter 2026 results missed consensus by a wide margin, brokerages' 2026 operating profit estimates and target prices diverged sharply. Some maintained estimates reflecting robotics and foldable expectations, while others cut them significantly to reflect BOM cost pressure and shipment delays. This suggests that earnings visibility has not yet been sufficiently established.
Most of BH's revenue is concentrated in supply through Samsung Display, making it vulnerable to changes in that customer's production plans and model lineup. An iM Securities analyst flagged the potential for cannibalization between the foldable iPhone and Pro Max models as a latent risk. High dependence on specific customers remains a factor that could amplify earnings volatility going forward.
In the second quarter of 2026, one-off costs from relocating production lines to Vietnam and labor cost burdens are seen as having pressured margins. Rising memory prices adding to material costs, along with cost-cutting pressure from a domestic customer's use of reused components, are also cited as downside risks.
With price increases difficult to achieve, a recurrence of these cost factors could delay the pace of margin recovery.
The robotics and humanoid FPCB business is still at an early stage, with vendor registration and specific order volumes not yet finalized. Execution risk was also underscored when the third-quarter foldable iPhone supply plan was scaled back from initial expectations.
If new businesses fail to convert into revenue as expected, a gap could open between current growth expectations and actual results.
The vendor registration decision for the robotics/humanoid business is expected to be finalized around this time; the outcome and scale could be a turning point for reassessing the new business's value.
Some foldable iPhone FPCB volume reduced in the third quarter is reported to shift into the fourth quarter, so it will be important to check whether that volume is actually recognized alongside early sales reception of the foldable iPhone.
Third-quarter earnings disclosure will be a point to check whether one-off costs related to the Vietnam production line relocation have subsided and whether IT OLED segment losses have continued to narrow.
The finalization of the specific line configuration for Samsung Display's Asan A7 facility warrants monitoring, as it could influence the medium- to long-term order outlook for Korea's OLED component and materials supply chain.
BH is in the process of building two new growth pillars: the foldable iPhone supply chain linked to Samsung Display and Apple, and the emerging robotics FPCB business.
However, despite revenue recovery from 2022 to 2025, operating margin declined steadily, and the provisional second-quarter 2026 results reconfirmed margin pressure from Vietnam production-line relocation costs layered on top of IT OLED losses.
The reduction of third-quarter foldable volumes from the original plan, with some shifting into the fourth quarter, illustrates execution risk in the new business lines.
Against this backdrop, brokerages' 2026 earnings estimates and target prices have diverged widely, suggesting that market participants have not yet reached a consensus on the pace of earnings recovery.
The robotics vendor registration outcome, the fourth-quarter sales reception of the foldable iPhone, and whether one-off costs subside in the third-quarter results are likely to be key variables shaping the earnings trajectory ahead.
Investors will need to weigh the long-term direction of business diversification against near-term earnings volatility.
Report written 2026-09-05 · Data as of 2026-09-04
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