[Edaily Reporter PARK MIN ] On the 4th, Meritz Securities maintained its “Buy” investment rating and target price of 6,500 won for Se Gyung Hi Tech Co., Ltd.(148150), noting that the company has begun to see a rebound in earnings driven by the launch of its clients’ new foldable products and the expanded adoption of optical films. This represents an upside potential of 59.7% compared to the current stock price of 4,070 won.

Yang Seung-soo, an analyst at Meritz Securities, stated in a report published that day, “It is regrettable that the earnings slump has persisted longer than expected due to the combined effects of fixed-cost burdens from large-scale investments and a sluggish smartphone market.” He added, “However, starting in 2027, the results of the proactive investments made to date and the acquisition of new clients are expected to become fully visible, and the pace of earnings recovery is projected to accelerate significantly.”

Se Gyung Hi Tech Co., Ltd.’s consolidated revenue for the second quarter of this year reached 86.3 billion won, a 15.3% increase year-over-year, while operating profit rose 80.6% to 3.3 billion won. Compared to the previous quarter, the company returned to operating profitability. Sales of protective films (PL) rebounded following the launch of new foldable devices by major domestic clients, driving revenue growth; it was confirmed that Se Gyung Hi Tech Co., Ltd. is the sole supplier (sol-vender) for all three models released this year.

This steep improvement in performance is expected to continue into the third quarter. Meritz Securities estimates third-quarter revenue at 94 billion won and operating profit at 7.1 billion won—representing year-over-year increases of 20.0% and 176.9%, respectively. Amid continued growth in PL shipment volumes driven by the global success of the Fold 8, analysts predict that sales of optical films will be driven by the full-scale inclusion of supplies of optical clear adhesive (OCA) films for smartphones and MacBooks to North American clients.

Medium- to long-term growth momentum is also on the horizon. First, the launch of a joint venture with Seed, a Chinese UTG manufacturer, will enable the full-scale joint supply of ultra-thin tempered glass (UTG) and PL. Supplies to Chinese smartphone clients have already been confirmed, and the possibility of securing additional clients remains open.

Meritz Securities forecasts Se Gyung Hi Tech Co., Ltd.’s annual revenue for this year at 312.4 billion won and operating profit at 10.9 billion won. The firm predicts that by 2027, the company will record revenue of 375.9 billion won and operating profit of 25.1 billion won, marking the start of a significant leap in performance.

Analyst Yang Seung-soo stated, “Smartphone manufacturers, facing increased cost pressures, are choosing to diversify their form factors as a way out,” adding, “As new form factors expand, the number of applicable components and the area they occupy are increasing simultaneously, so we expect the company to benefit structurally.”