FineTek lands additional 10 billion won OLED order from 'Samsung Display Vietnam'

[Financial News] FineTek is building its order book for the second half after securing an additional order for OLED manufacturing equipment from Samsung Display Vietnam.
FineTek said on the 28th that it had signed a supply contract worth about 10 billion won for OLED manufacturing equipment with Samsung Display Vietnam. The additional order follows a contract worth 19.5 billion won signed in July.
Including this contract, cumulative orders as of October total about 37 billion won. That is equivalent to about 80% of last year's revenue, and the company said the orders it has secured are expected to be reflected in revenue in stages starting in the second half of the year.
OLED adoption is expanding in end markets, particularly for tablets and laptops. FineTek expects this shift to lead to investment in panel production equipment and orders for related equipment.
According to market research firm Sigmaintell, global shipments of OLED panels for laptops rose from 2.1 million units in the first quarter of last year to 4.3 million in the second quarter of this year. Shipments are expected to reach 4.9 million in the third quarter of this year. OLED-equipped products are forecast to account for more than 10% of total laptop shipments in the second half of the year.
A FineTek official said, "Samsung Display accounts for at least 70% of the OLED panel volume supplied to major laptop manufacturers," adding, "If OLED adoption spreads to entry-level products as well, both panel supply and demand for production equipment could increase."
A display industry official said, "If OLED adoption expands to laptops and tablets, equipment makers in the sector could also have more opportunities to win orders," adding, "However, when revenue is actually recognized and the scale of growth will depend on customers' equipment investment schedules and equipment delivery plans."
FineTek plans to strengthen its competitiveness in its existing OLED bonding equipment business while also investing resources in new growth areas, including robot development. Its aim is to turn the orders it has secured into business results and establish a basis for further growth through business diversification.

[email protected] Choi Doo-seon Reporter