Fine M-Tec’s North American Foldable Shipments to Rise 70%; ESS Revenue Seen at KRW 100 Billion

[Financial News]  Securities analysts say Fine M-Tec Co., Ltd. is poised to enter a new growth phase as it expands supply to a major North American customer. With production of key components for foldable smartphones increasing and revenue from energy storage system (ESS) components also growing rapidly, the company could see both top-line growth and improved profitability.
On the 21st, Hanyang Securities researcher Jun-seok Lee said Fine M-Tec Co., Ltd. was “stepping up the expansion of foldable component volumes with the addition of a new North American customer,” and analyzed that “with large-scale upfront facility investment nearing completion, increased production is expected to generate operating leverage.” No investment rating or target price was provided.
Fine M-Tec Co., Ltd. manufactures inner hinges and backplates used in foldable displays.
The company expanded its customer base this year to include a major North American customer, moving beyond a supply chain centered on Samsung Electronics Co., Ltd. and Chinese customers. After starting mass production last July, it increased output in August and September, and the related production lines are operating at full capacity day and night. Monthly production capacity is also understood to have reached at least 1 million units.
Hanyang Securities expects the volume of foldable-related shipments next year to increase by 50–70% from this year. In particular, with most of the approximately KRW 120 billion in upfront facility investment for 2025–2026 nearing completion, the burden of additional investment is expected to decline, while the benefits of spreading fixed costs as production facility utilization rises are expected to grow. The firm also cited the possibility of record-high revenue this year.
The pace of growth in the ESS business is also worth watching. Researcher Lee estimates that the company’s revenue from ESS end plates will rise from approximately KRW 12 billion last year to at least KRW 60 billion this year, and reach KRW 100 billion–120 billion next year. Lee also said that the company is pursuing supply of SUS frames, a new precision mechanical component, and that this is expected to change its smartphone-centered revenue mix.
Over the medium to long term, next-generation precision machining technologies are seen as an additional growth driver. Fine M-Tec Co., Ltd. is developing HTG technology to reduce creases in foldable displays, as well as TGV process technology for semiconductor glass substrates. However, as neither business has yet demonstrated full-scale mass-production revenue, attention is focused less on near-term earnings and more on the potential for business expansion after 2028.
The securities industry identifies supply volumes to North American customers and utilization rates at new production facilities as the key factors that will determine whether Fine M-Tec Co., Ltd.’s earnings improve. Analysts say that the company’s future valuation will hinge not only on revenue growth from new orders, but also on how quickly its capital investments already made translate into profits.


[email protected] Kim Gyeong-a Reporter