KOSDAQElectronic Components441270

Fine M-Tec

₩9,420▲ 0.11%2026-10-02 close

Market Cap

₩397.5B

Turnover

₩3.6B

Volume

380,000 shares

Shares out.

42.3M

PER

—

PBR

1.9×

EPS

-₩251

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Foldable Act Two: Fine M-Tec at an Inflection Point

Fine M-Tec returned to a modest operating profit in 2025 while net losses persisted, and the company now faces two potential growth triggers at once: Samsung's expanding foldable lineup and Apple's anticipated entry into foldable phones.

1
2025 revenue fell 37.4% YoY to KRW 239.1bn while operating profit turned positive at KRW 1.9bn, yet net income attributable to owners remained a loss of KRW -14.9bn.
2
A recurring gap between operating profit and net income appeared in both 1Q26 and 2Q26 -operating loss with net profit in Q1, operating profit with net loss in Q2- pointing to sizable non-operating swings.
3
Apple is expected to unveil its first foldable iPhone around September 9, 2026 (local time), and Fine M-Tec is cited as a leading candidate to supply the internal hinge back plate.
4
Brokerage forecasts point to Galaxy Z Fold8 shipment expansion boosting Q3 results and initial Apple orders contributing in Q4.
5
A KRW 57bn capital raise (common equity plus convertible preferred shares) in November 2025 was used to directly acquire the Vietnam production subsidiary, reshaping the company's global supply chain.

Business structure

Fine M-Tec was established in September 2022 through a spin-off of the IT components business from Fine Technics and listed on KOSDAQ the following month, specializing in precision mechanical components.

Its core product is a metal internal hinge, or back plate, embedded inside foldable display panels, produced using proprietary etching and laminated composite-sheet technology and supplied into global customers' foldable OLED panels.

The company supplies this part first to Samsung Display, which ultimately feeds into Samsung Electronics' foldable phones.

Since last year's Galaxy Z Fold7, which introduced the Armor Flex Hinge, Fine M-Tec has also participated in external hinge development, a market where KH Vatec has been the main supplier and China's Huanli covers part of the volume.

Beyond IT components, the company has diversified into EV module housing for electric vehicles and end plates for energy storage systems, with EV module housing known to carry higher profitability than hinge products.

Production is based at domestic Anyang and Hwaseong plants plus Vietnamese subsidiaries in Hanoi and Bac Ninh, and in November 2025 the company raised capital to directly acquire the Vietnam production subsidiary previously held by affiliate Fine Technics, aiming to unify its global supply network.

Ahead of Apple's expected foldable iPhone launch in the second half of 2026, Fine M-Tec is cited as a candidate to supply the internal hinge back plate, based on the view that Apple is likely to inherit much of Samsung Display's existing foldable panel supply structure.

Competition remains open, however, as US-based Amphenol and China's Dongguan EIT are also mentioned as potential candidates for Apple's foldable hinge supply chain.

Earnings trend

Quarterly revenue · Operating profit

₩76.5B₩5.3B25Q2₩57.5B₩1.5B25Q3₩61.5B-₩1.9B25Q4₩46.1B-₩2.2B26Q1₩95.2B₩7.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩116.4B₩5.4B2022₩380B₩20.3B2023₩382.2B-₩7.9B2024₩239.1B₩1.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩76.5B	₩5.3B	6.9%
2025Q3	₩57.5B	₩1.5B	2.7%
2025Q4	₩61.5B	-₩1.9B	−3.2%
2026Q1	₩46.1B	-₩2.2B	−4.8%
2026Q2	₩95.2B	₩7.3B	7.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩116.4B	₩5.4B	-₩7.5B	4.7%	−6.7%	91.2%
2023	₩380B	₩20.3B	₩10.5B	5.4%	7.0%	66.4%
2024	₩382.2B	-₩7.9B	-₩17.2B	−2.1%	−12.3%	102.9%
2025	₩239.1B	₩1.9B	-₩14.9B	0.8%	−7.6%	94.5%

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

In 2022, the first year following the spin-off, revenue was KRW 116.4bn with operating profit of KRW 5.4bn (a 4.7% margin), yet net income attributable to owners was a loss of KRW -7.5bn.

In 2023, revenue surged to KRW 380.0bn with operating profit of KRW 20.3bn (5.4% margin), owners' net income of KRW 10.5bn, and operating cash flow of KRW 41.8bn, marking a clear recovery year.

In 2024, however, revenue stagnated at KRW 382.2bn while operating profit swung to a loss of KRW -7.9bn (-2.1% margin) and owners' net income deteriorated further to KRW -17.2bn.

In 2025, revenue fell 37.4% YoY to KRW 239.1bn, which analysts attribute to average-selling-price declines from digitizer removal and share loss within the book-type model tied to a domestic customer's volume allocation policy.

Even so, operating profit turned positive at KRW 1.9bn (0.8% margin), while owners' net income remained a loss of KRW -14.9bn, highlighting a clear divergence between operating and bottom-line results.

Quarterly, 2Q25 posted an operating profit of KRW 5.3bn alongside a net loss of KRW -5.2bn; 1Q26 posted an operating loss of KRW -2.2bn alongside net income of KRW 2.6bn; and 2Q26 saw operating profit recover to KRW 7.3bn while the net result was again a loss of KRW -7.6bn, repeating the same pattern three times.

This operating-versus-net divergence points to sizable non-operating swings, though the precise cause requires further confirmation through future disclosures.

Over the trailing four quarters (3Q25-2Q26), the cumulative net loss to owners stood at roughly KRW -11.5bn, indicating that even as operating profit recovered in some quarters, the overall earnings picture has not yet fully normalized.

Operating cash flow was also negative in both 2024 (KRW -2.2bn) and 2025 (KRW -1.4bn), suggesting that cash generation has not clearly improved even after the 2025 operating profit turnaround.

Industry analysis

The global foldable phone market is estimated to still account for only about 1.6% of the overall smartphone market, but a market research firm's analysis suggests this could nearly double to over 3% by 2027 following Apple's expected entry with its first foldable iPhone.

Fine M-Tec holds a track record of supplying the internal hinge through Samsung Display since Samsung Electronics' first-generation foldable phones, and has more recently joined the external hinge supply chain alongside KH Vatec in a dual-sourcing arrangement.

Competition over Apple's foldable iPhone hinge supply chain remains undecided, with US-based Amphenol and China's Dongguan EIT also mentioned as candidates.

One brokerage analyst rated Fine M-Tec's supply prospects favorably, reasoning that the structure in which a North American smartphone maker sources display panels through Fine M-Tec's existing customer (Samsung Display) is likely to persist even after foldable entry.

The laser-etching process the company has adopted is technically more demanding than chemical etching, and analysis suggests whichever supplier secures early yield stability will hold an advantageous position.

A slowdown in the electric-vehicle market has weighed on EV module housing revenue, though new end-plate demand tied to growing ESS deployment is expected to partly offset this.

Viewed through an industry-cycle lens, the company moved through a boom in 2023, an inventory-adjustment-driven downturn in 2024, and the early stages of recovery in 2025, putting 2026 in focus as a test of whether it can capture simultaneous Samsung and Apple demand.

Outlook

In July 2025, the company decided on a KRW 17.5bn facility investment to expand the foldable market opportunity and strengthen ultra-precision laser production capacity, with the investment period set to run through January 20, 2027.

In November 2025, it decided on a combined KRW 57bn capital raise consisting of a KRW 17bn third-party equity issuance to affiliate EMB and a KRW 40bn convertible preferred share issuance to domestic institutional investors, explained as funding for the direct acquisition of the Vietnam production subsidiary, global supply-chain reorganization, and new equipment investment.

A brokerage forecast suggests that in 2026 the domestic customer will adopt laser-etched metal plates in book-type models as well, which could bring both share recovery and average-selling-price gains.

Apple is expected to unveil its first foldable iPhone around September 9, 2026 US local time, and Hanyang Securities projected that related component supply-chain volumes would begin to expand meaningfully from the second half of the year.

The same brokerage projected that Q3 could mark a quarterly record as Galaxy Z8 series shipment expansion and initial Apple-related volume land together, while Q4 -traditionally a slow quarter- could resemble a near-peak season as Apple foldable supply expansion continues.

Brokerage estimates vary widely: Meritz Securities, in a March 2026 report, projected 2026 revenue of KRW 577.5bn (+141.7% YoY) and operating profit of KRW 39.2bn, while Hanyang Securities, in a September 2026 report, presented revenue of KRW 392.17bn (+64.0% YoY) and operating profit of KRW 25.9bn, leaving a substantial gap between the two forecasts.

Second-quarter R&D spending reached KRW 5.2bn, up 65.1% from the trailing four-quarter average, which Hanyang Securities interpreted as a pre-emptive investment to stabilize mass production of next-generation back-plate processes and composite lamination technology for second-half new products.

Valuation

PER

—

PBR

1.9×

ROE

-6.5%

EPS

-₩251

BPS

₩4,882

Dividend per share

₩0

Fine M-Tec has remained in a net-loss position both for 2025 and over the trailing four quarters, meaning that in this phase the pace and durability of a revenue and earnings recovery matter more than conventional earnings-multiple comparisons.

The share price trades at a premium to net asset value, suggesting the market has already priced in some expectation around the foldable 'second act' story. With no recent history of dividend payments, comparing dividend appeal directly against other component makers is difficult.

On the balance sheet, the debt ratio fluctuated from 66.4% in 2023 to 102.9% in 2024 and 94.5% in 2025, a pattern that reflects the timing of capital expenditures and financing events.

Recent price targets published by some brokerages place heavy weight on the structural growth story of simultaneous Apple and Samsung exposure, but these represent the judgment of individual research houses rather than a market-wide consensus.

Ultimately, the direction of valuation ahead will depend on how quickly and reliably Apple- and Samsung-related volumes convert into actual revenue and net income.

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

Potential Entry into Apple's Foldable Supply Chain

With Apple expected to unveil its first foldable iPhone around September 2026, Fine M-Tec is cited as a leading candidate to supply the internal hinge back plate. This view rests on the analysis that Apple is likely to largely inherit Samsung Display's existing foldable panel supply structure.

One brokerage assessed that even initial-order volume alone could contribute meaningfully to second-half revenue, with further upside depending on the extent of share gains. That said, this remains a brokerage forecast, and no final contract has been confirmed.

Domestic Foldable Lineup Expansion and Dual-Sourcing Gains

There is a forecast that the domestic customer will adopt laser-etched metal plates in book-type models as well, which could bring both share recovery and average-selling-price gains.

Fine M-Tec's participation in developing the Armor Flex Hinge introduced with the Galaxy Z Fold7 also brought it into a dual-sourcing role for external hinges. This marked a shift from a revenue base centered on internal hinges toward a broader external hinge product line. A brokerage also forecasts that expanded Galaxy Z8 series shipments will be reflected in third-quarter results.

Operating Profit Turnaround and Technology Edge

Full-year 2025 operating profit turned positive at KRW 1.9bn, and it improved further to KRW 7.3bn in 2Q26 even as R&D spending increased, indicating improved profitability. This is partly interpreted as a competitive edge stemming from securing early yield stability in the technically demanding laser-etching process.

Some assessments also note the company is ahead of domestic rivals in related equipment investment. Net income, however, remains in a loss position, meaning the operating improvement has not yet fully translated into overall earnings.

Bear factors

Recurring Gap Between Operating Profit and Net Income

Across 2025 and the first half of 2026, a pattern repeated three times in which operating profit was positive while net income was negative, or vice versa. This suggests non-operating items are having a significant effect on the bottom line. The precise cause requires further confirmation through future disclosures.

From an investor's perspective, it is worth continuing to monitor how reliably operating improvements translate into net income attributable to shareholders.

Customer and Product Concentration, Revenue Volatility

2025 revenue fell 37.4% year over year, driven by a customer's volume allocation policy and price declines, illustrating the vulnerability of a revenue base concentrated in a small number of customers and products. With Apple volume not yet confirmed, dependence on Samsung-related orders remains high.

Heavy reliance on a single form factor -foldable phones- means any demand slowdown or model-cycle delay in that segment could directly affect results. Share positions relative to competitors could also be recalibrated at any time.

New-Customer Execution Risk and Intensifying Competition

Competing candidates such as US-based Amphenol and China's Dongguan EIT are also mentioned in Apple's foldable hinge supply chain, leaving uncertainty until a final contract is confirmed.

While some analysis suggests a Chinese competitor's supply capacity may struggle to meet initial demand, this could conversely increase the supply burden placed on Fine M-Tec itself.

With R&D spending rising sharply in the second quarter, any delay in stabilizing yields for the new process could slow the pace of profitability improvement relative to the investment burden. Forecasts for the actual scale and timing of initial Apple-related orders still vary considerably across brokerages.

Risk factors

Customer and Product Concentration Risk

Revenue is heavily concentrated in foldable hinge components channeled through Samsung Display, so any change in a customer's volume allocation policy or a slowdown in foldable-phone demand directly affects results. The sharp 2025 revenue decline illustrated this structural vulnerability.

While a new customer relationship with Apple is in progress, revenue diversification has not yet been fully achieved.

Financial and Dilution Risk

The debt ratio remained elevated at 102.9% in 2024 and 94.5% in 2025, and operating cash flow was negative in both years. The KRW 40bn convertible preferred shares issued in November 2025 could dilute existing shareholders if converted into common stock in the future.

Repeated capital raises are tied to necessary facility investment, but they can also add to the financial burden.

New Supply-Chain Execution Risk

Entry into Apple's foldable iPhone supply chain is not yet a confirmed contract but remains a competitive process among multiple candidate suppliers. If yield stabilization is delayed during the transition to new processes such as laser etching, the timing of returns on investment could be pushed back. The wide variance among brokerages' 2026 earnings estimates also reflects this uncertainty.

What to watch next

Around September 9, 2026
Apple's expected unveiling event for its first foldable iPhone, a point to watch for any mention of hinge/back-plate supply chain details or supplier confirmation.
3Q26 earnings release (typically expected around November)
A point to confirm whether Galaxy Z8 series shipment expansion and any initial Apple-related volume are actually reflected in results.
January 20, 2027
The scheduled completion date for the KRW 17.5bn ultra-precision laser facility investment decided in July 2025, a point to check utilization rates and yield stabilization.
4Q26 earnings release (typically expected around the following February)
A point to check whether the traditionally slow fourth quarter delivers near-peak-season results, as some brokerages have forecast.

Overall view

Fine M-Tec moved through a boom in 2023 and an inventory-adjustment-driven downturn in 2024 before showing a recovery signal with the 2025 operating-profit turnaround, yet net income attributable to owners has remained in a loss for four consecutive years.

Notably, over the past five quarters, operating profit and net income have repeatedly moved in opposite directions, showing that the operating recovery has not yet translated into a full normalization of earnings.

The core growth story rests on two pillars -Samsung's expanding foldable lineup and Apple's anticipated entry into foldable phones- but any Apple-related supply contract remains unconfirmed amid multiple competing candidates. This is reflected in the wide variance among brokerages' 2026 earnings estimates.

On the financial side, the debt ratio has stayed elevated, operating cash flow was negative for two straight years, and the recently issued convertible preferred shares remain a potential future dilution factor.

Ultimately, the key point to watch is how reliably Apple- and Samsung-related volumes convert first into revenue and then into actual net income, with upcoming new-product launches and quarterly earnings releases expected to provide the evidence needed to judge that.

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.