[Edaily Reporter Shin Ha-yeon ] On the 4th, Meritz Securities projected that Fine M-Tec Co.,Ltd.(441270)would enter a new phase of growth, driven by strong sales of SamsungElectronics’ foldable phones and the entry of North American smartphone manufacturers into the foldable market. The firm maintained its “Buy” investment rating and set a target price of 12,000 won.

Yang Seung-soo, an analyst at Meritz Securities, stated, “We expect SamsungElectronics’ pre-order sales of foldable phones to reach an all-time high this year, and we anticipate an upward revision in the annual foldable shipment forecast, centered on the Fold 8.” He added, “Since North American smartphone manufacturers are scheduled to unveil their first foldable smartphones at the Unpacked event in September, we can expect a stock price trend that differs from the past.”

Meritz Securities views the entry of North American manufacturers into the market as an inflection point for the expansion of the foldable market. Analyst Yang explained, “The entry of North American manufacturers is expected to serve as a catalyst for expanding the demand base for foldable devices beyond the Android ecosystem to include non-Android users and the tablet market,” adding, “The global foldable smartphone market is projected to grow at an average annual rate of 13% through 2033.”

Fine M-Tec Co.,Ltd. was assessed as the only beneficiary to have secured both domestic and North American clients simultaneously. Analyst Yang stated, “We identify Fine M-Tec Co.,Ltd. as the only company that stands to benefit from the launch of new foldable products by both domestic and North American clients this year,” adding, “For domestic clients, the key factors are market share recovery and an increase in the average selling price (ASP) driven by the expanded application of laser etching on metal plates.” He added, “For North American clients as well, given the high technical complexity of the laser etching process, the company is expected to secure a high market share after successfully achieving initial yield rates.”

In the short term, the firm also anticipates an improvement in earnings driven by expanded production. Analyst Yang noted, “Although shipments are currently limited due to initial yield issues with some components, if positive consumer response is confirmed following the Unpacked event, production plans and component orders are expected to be revised upward starting in the fourth quarter,” adding, “We also anticipate a medium- to long-term increase in volume through the launch of additional models in 2028.”

Daol Investment & Securities revised its foldable panel shipment forecasts for this year and next year downward by 18.2% and 30.0%, respectively, and lowered its fair value estimate from 14,000 won to 12,000 won, but still assessed the stock’s investment appeal as high.

Analyst Yang emphasized, “Starting in the second quarter, the upward trend in the company’s earnings driven by expanded shipments for foldable devices remains valid,” adding, “The high proportion of foldable revenue (expected to reach 83% in 2026) and the fact that it is the only company capable of benefiting from both domestic and North American clients are premium factors.” He continued, “From the perspective of investing in foldable-related stocks, we view the current price range as an opportune time to increase holdings.”