KOSDAQElectronic Components148150

Se Gyung Hi Tech

₩4,015▼ 1.11%2026-10-02 close

Market Cap

₩142.9B

Turnover

₩200M

Volume

60,000 shares

Shares out.

35.5M

PER

2.4×

PBR

0.5×

EPS

₩1,752

Dividend Yield

2.40%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close

Report overview

Foldable Film Monopoly Supplier, Core Margin Needs a Rebuild

Se Gyung Hi Tech retains its exclusive position supplying protective film for Samsung foldable phones and net profit has rebounded, but its core operating margin has clearly weakened.

1
2025 revenue fell to KRW 277.9bn with operating margin dropping to 0.6%, yet net profit rose to KRW 48.8bn
2
Q2 2026 revenue reached KRW 86.3bn with operating profit of KRW 3.3bn, but the trailing four-quarter operating margin still sits in the low-1% range
3
Exclusive supply of protective film (PL) to Samsung Display is both the core competitive edge and the source of customer concentration risk
4
Diversification is underway via stakes in Sesmat (secondary battery materials) and Seed Global (UTG glass processing)
5
Since the controlling stake moved to a private equity consortium led by Isang Partners, a further sale process has reportedly been underway

Business structure

Se Gyung Hi Tech was founded in 2006 and listed on KOSDAQ in 2019 as a specialist in functional films for IT devices.

Its business rests on three pillars: decoration film, optical film, and protect/injection film (Glastic/PCPMMA), with a 2023 revenue mix of roughly 29.6% decoration film, 41.1% optical film, and 29.3% protect/injection film.

In optical film, which accounts for over 40% of revenue, the company has exclusively supplied Samsung Display with protective film for the ultra-thin glass (UTG) used in Samsung Electronics' foldable Galaxy Z series since 2019.

This protective film shields the UTG from external impact and supports fingerprint resistance and improved touch feel.

The decoration film segment applies color and design to the front and back housing of mobile devices, serving customers including Samsung Electronics, Oppo, and Xiaomi, and the company is known for pioneering its proprietary MDD (Micro Dry process Decoration) technique, giving it a claimed technological edge over rivals.

Glastic (PCPMMA), part of the protect/injection film segment, replicates a glass-like texture on plastic cases and is used mainly in mid-to-low-end smartphones.

In January 2023 the company acquired a 70% stake in Sesmat, a secondary battery materials developer, pursuing diversification such as new fire-retardant film materials for EV battery packs.

More recently, it has taken a stake in Seed Global, the Singapore subsidiary of China-linked UTG processor Seed, and is building a joint-venture glass plant in Korea, while also expanding into new product lines such as card plates and decoration film for mid-size IT devices.

Earnings trend

Quarterly revenue · Operating profit

₩74.8B₩1.8B25Q2₩78.3B₩2.6B25Q3₩70.9B₩500M25Q4₩61B-₩2.2B26Q1₩86.3B₩3.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩260.6B₩8B2022₩304.5B₩36.2B2023₩320.3B₩31.5B2024₩277.9B₩1.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩74.8B	₩1.8B	2.5%
2025Q3	₩78.3B	₩2.6B	3.3%
2025Q4	₩70.9B	₩500M	0.7%
2026Q1	₩61B	-₩2.2B	−3.6%
2026Q2	₩86.3B	₩3.3B	3.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩260.6B	₩8B	₩16.5B	3.1%	9.5%	19.9%
2023	₩304.5B	₩36.2B	₩34.9B	11.9%	17.5%	50.7%
2024	₩320.3B	₩31.5B	₩20.6B	9.8%	10.0%	66.9%
2025	₩277.9B	₩1.8B	₩48.8B	0.6%	20.7%	47.6%

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

Earnings analysis

Full-year 2025 revenue fell to KRW 277.9bn from KRW 320.3bn in 2024, while operating profit plunged from KRW 31.5bn to KRW 1.76bn, dragging the operating margin down from 9.8% to 0.6%.

Even so, net profit attributable to owners rose from KRW 20.6bn to KRW 48.8bn, indicating that non-operating factors heavily influenced the bottom line.

On a quarterly basis, revenue of KRW 78.3bn, operating profit of KRW 2.6bn and net profit of KRW 7.0bn in Q3 2025 gave way to Q4 2025 revenue of KRW 70.9bn and operating profit of just KRW 0.5bn, even as net profit surged to KRW 28.7bn.

In Q1 2026 the company posted an operating loss of KRW 2.2bn on revenue of KRW 61.0bn, yet still booked net profit of KRW 3.3bn, and in Q2 2026 revenue rose to KRW 86.3bn with operating profit improving to KRW 3.3bn, while net profit reached KRW 21.0bn, several times the operating profit level.

Meritz Securities stated in a September 4, 2026 report that consolidated Q2 revenue rose 15.3% year-on-year and operating profit rose 80.6%, while noting revenue beat consensus but operating profit fell short of it.

Summing the trailing four quarters (Q3 2025 through Q2 2026), revenue totals roughly KRW 296.5bn and operating profit only about KRW 4.2bn, keeping the operating margin in the low single digits, whereas net profit attributable to owners reaches roughly KRW 60.1bn, highlighting a clear gap between core profitability and the final bottom line.

This recurring gap between operating and net profit across several quarters appears to reflect non-operating items such as equity-method gains or asset revaluations, meaning operating profit trends should be monitored separately when assessing core cash-generating capacity.

Industry analysis

Se Gyung Hi Tech's earnings are closely tied to the shipment cycle of the foldable smartphone market.

Eugene Investment Securities noted that domestic flagship customer foldable phone shipments showed a continuous decline from 9 million units in 2022 to 8 million in 2023 and 6 million in 2024, cited as a backdrop for the company's off-season weakness.

On the other hand, the company's protective film was reportedly applied exclusively across all three new foldable models launched by its domestic customer in 2026, showing that its supply position has held even amid volume concerns.

The foldable form factor is expanding beyond smartphones into mid-size IT devices such as tablets and laptops, and the company is positioning this expansion as an opportunity to broaden its revenue base.

On the competitive front, cooperation with Samsung Display continues, including jointly filed patents, but industry observers have long flagged the possibility that Samsung Display could dual-source protective film suppliers as the foldable market grows.

Whether and when North American set makers such as Apple enter the foldable market is considered a key variable for supply chain realignment, and the related supply chain reportedly remains unconfirmed.

In addition, as cooperation with China-linked UTG processor Seed becomes established, competition within the global UTG supply chain appears to be intensifying.

Outlook

Meritz Securities said in a September 4, 2026 report that an earnings rebound is taking hold starting in the second quarter, projecting that momentum related to new customers and form factors would become visible from 2027, following growth in foldable smartphone sales and increased supply of optical products to a North American customer.

The report also assessed that the company holds structural growth potential, as film application products and coverage areas could expand together as smartphone makers diversify form factors.

On the business side, the acquisition of a stake in UTG processor Seed Global reportedly entered its final stage in December 2025, and a domestic joint-venture glass plant is understood to be preparing for completion, raising the possibility that related revenue could be reflected going forward.

In addition, the company is reported to be adding dedicated production facilities for card plates and mid-size IT device decoration film, with some equipment already in trial operation, making it a watch point whether these new businesses become an additional revenue source beyond the core business.

In February 2026, a 49% stake investment in a Vietnam-related joint venture was reportedly made, continuing the expansion of overseas production bases.

That said, off-season earnings volatility remains substantial, as shown by the swing to an operating loss in Q1 2026, and the timing and scale at which the new businesses translate into confirmed revenue and profit have not yet been finalized through disclosure.

Valuation

PER

2.4×

PBR

0.5×

ROE

24.0%

EPS

₩1,752

BPS

₩7,736

Dividend per share

₩100

The current share price trades at a multiple noticeably below the target price-to-earnings band the company once commanded during its high-growth period (a roughly 15x multiple was cited at one point), and the price-to-book ratio also remains below net asset value, suggesting the market has not yet fully priced in the recent profit recovery.

This should be weighed alongside the fact that net profit since 2025 has diverged sharply from operating profit, driven largely by non-operating factors. On the dividend side, the company has a track record of paying cash dividends, though the level is understood to sit below the industry average.

Given reports of a further sale process for the controlling stake, how any governance change might affect valuation is also a variable worth monitoring.

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

Bull factors

Exclusive Supply Position for Samsung Foldables

The company has exclusively supplied UTG protective film for foldable phones to Samsung Display since 2019, and its film was reportedly applied across all three new foldable models launched by its domestic customer in 2026.

Meritz Securities assessed that structural growth potential exists as film application products and coverage areas could expand together amid form factor diversification. Supply of optical products to a North American customer is also expanding, indicating ongoing customer diversification.

Diversification into Battery and UTG Materials

Through Sesmat, acquired in 2023, the company is developing new battery-related materials, and it has recently taken a stake in Seed Global, a UTG processing technology holder, to build a domestic joint-venture glass plant.

This is paired with a strategy to broaden coverage into new product lines such as card plates and decoration film for mid-size IT devices. If these efforts take hold, they could offer a potential path to reducing dependence on the smartphone form factor cycle.

Expanded Net Profit Over the Trailing Four Quarters

Net profit attributable to owners totaled roughly KRW 60.1bn over the four quarters from Q3 2025 through Q2 2026, a marked increase from the prior four-quarter period. Full-year 2025 net profit also rose sharply to KRW 48.8bn from KRW 20.6bn in 2024.

This expansion in profit has also contributed to equity growth, with owners' equity rising from KRW 205.1bn at end-2024 to KRW 235.8bn at end-2025.

Bear factors

Sharp Decline in Core Operating Margin

The full-year 2025 operating margin fell sharply to 0.6% from 9.8% in 2024 and 11.9% in 2023, and the company posted an operating loss in Q1 2026. The trailing four-quarter operating margin also remains in the low single digits, meaning the core profit-generating capacity remains weak even as net profit has recovered.

If net profit continues to substantially exceed operating profit, questions about the quality of earnings could persist.

Customer and End-Market Concentration

A significant portion of revenue depends on Samsung Electronics' foldable phone volumes, and domestic customer foldable shipments showed a declining trend from 9 million units in 2022 to 6 million in 2024.

Industry observers have long flagged the possibility that Samsung Display could dual-source protective film suppliers as the foldable market expands. Diversification into North American and Chinese customers is underway but does not yet appear large enough to offset Samsung dependence.

Governance and Controlling Shareholder Uncertainty

After the controlling stake moved from the founder to a private equity consortium including Isang Partners in 2022, reports emerged that the sellers were seeking a new buyer for the stake.

The asking price is reportedly set well above the current market capitalization, leaving the timing and outcome of any deal uncertain. Repeated changes in controlling shareholder could affect the continuity of management strategy and the pace of new business execution.

Risk factors

Customer Concentration Risk

Revenue is heavily concentrated in foldable component supply to Samsung Electronics and Samsung Display, so weak sales of new models or a supply chain dual-sourcing decision by this customer would directly affect earnings. Chinese customers such as Oppo and Xiaomi exist, but their scale remains limited relative to Samsung.

FX and Cost Risk from Overseas Operations

The company operates multiple overseas production and investment entities in Vietnam, China, and Japan, exposing it to currency fluctuations and local labor and capex burdens. With ongoing investment in new joint ventures such as Seed Global and the Vietnam JV, early-stage ramp-up costs could weigh on profitability.

Earnings Quality and Non-Operating Profit Dependence

The recurring pattern in which net profit substantially exceeds operating profit over several recent quarters suggests earnings sustainability may hinge on non-operating factors.

If the cause and repeatability of these non-operating gains are not sufficiently explained through disclosure, it could create confusion in how investors interpret earnings.

What to watch next

Mid-November 2026
The Q3 2026 earnings disclosure should be checked for the degree of peak-season revenue and margin recovery, and whether the non-operating profit pattern recurs.
Q4 2026
This is the point to check whether the Seed Global joint-venture UTG glass plant begins operation and the scale of its initial revenue contribution.
H2 2026
Watch for news on whether a North American set maker enters the foldable phone market and whether the related component supply chain is finalized.
During 2026
The progress of the additional controlling-stake sale process reportedly being pursued by Isang Partners and Jarvis Asset Management, and whether a buyer is confirmed, should be monitored.
H2 2026
This is the point to check whether mass production of card plates and mid-size IT device decoration film begins and whether it starts contributing to revenue.

Overall view

Se Gyung Hi Tech holds a solid business foundation as the exclusive supplier of protective film for Samsung's foldable phones, and signs of a rebound have appeared, with Q2 2026 revenue and operating profit both improving year-on-year.

However, as shown by the full-year 2025 operating margin falling to 0.6% and the operating loss recorded in Q1 2026, the core business's profit-generating capacity has clearly retreated from the double-digit levels seen in prior years.

In contrast, net profit attributable to owners has actually expanded, driven by non-operating factors, producing a clear divergence between operating profit and net profit over the trailing four quarters.

Multiple growth avenues are being pursued simultaneously, including diversification into battery and UTG materials through Sesmat and Seed Global, and new businesses such as card plates and mid-size IT devices, though their revenue and profit contributions have not yet been confirmed through disclosure.

In addition, reports of a further sale process for the controlling stake mean potential governance change is another variable to watch.

On balance, this appears to be a stage where bullish factors—supply chain positioning in foldables and new business diversification—coexist with bearish factors, namely weakened core profitability and customer and governance uncertainty.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.