How “Book-Type Foldables” Are Changing the Earnings Formula... Fine M-Tec Co., Ltd. Seen Beating Q3 Consensus

[Financial News] Fine M-Tec Co., Ltd. is expanding both its customer base and product lineup for foldable smartphones, prompting forecasts that its third- and fourth-quarter results will exceed market expectations. A higher average selling price (ASP) for backplates, driven by a larger share of book-type foldables, and a lighter research and development (R&D) cost burden are cited as factors that will improve profitability.
On the 26th, Kwon Myeong-jun, an analyst at Yuanta Securities, forecast that Fine M-Tec Co., Ltd.'s third- and fourth-quarter revenue and operating profit would exceed market consensus of KRW 148.4 billion and KRW 18.1 billion, respectively. The operating margin is expected to be around 12.2%. Quarterly revenue is affected by performance in IT components, particularly overseas mobile components. Kwon analyzed this year's trend as similar to that of 2023. No investment rating or target price was provided.
This year, however, one variable that differs from that period is the expansion of existing customers' foldable product lineups, along with the addition of a new customer. The company's key customer plans to expand its foldable lineup from two models to three, and sales volume is also expected to improve from the previous year. There are concerns that the price of the new customer's first foldable product could weigh on sales, but global interest has continued since its launch, drawing attention to the impact initial demand will have on results.
Yuanta Securities said changes in the product mix could also affect unit prices. Foldable phones are broadly divided into book-type models that open like a book and clamshell models that fold like a shell. Fine M-Tec Co., Ltd.'s backplate prices vary according to the size of the product. Demand for book-type models began to outpace demand for clamshells starting in 2025, and the new customer's product is also launching as a book-type model. This is expected to lift the backplate ASP, the securities firm said.
Economies of scale and lower R&D costs are also expected to help improve margins. Kwon said, “R&D costs, which had risen as the company sought to win business from a new customer, increased from KRW 5.25 billion in 2023 to KRW 11.1 billion in 2024 and KRW 11.8 billion in 2025.” A further KRW 8.52 billion was incurred in the first half of 2026, but Kwon expected related costs to decline going forward.
Fourth-quarter results are also forecast to improve significantly from the same period a year earlier. Sales of the new customer's products are expected to continue from the third quarter into the fourth, while the IT components segment is also a growth driver. Revenue from IT components, including mobile and automotive parts, hit a record high in the second quarter of 2026 and is expected to contribute to an improvement in full-year results.
Kwon added, “The foldable phone market will continue to grow in 2027, driven by demand for consuming content on larger screens and for multitasking,” and said, “If the expansion of foldable products and improved performance in IT components continue, Fine M-Tec Co., Ltd.'s growth drivers could also strengthen over the medium to long term.”


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