[Edaily Reporter Kim Hyung-il ] SKSecurities has lowered its target price for FNS TECH. Co.,Ltd.(083500)from 30,000 won to 23,500 won, a 21.7% reduction. This reflects increased uncertainty regarding equipment sales due to delays in investments in information technology (IT) organic light-emitting diode (OLED) equipment by major clients. However, the firm maintained its “Buy” rating, noting that profitability is improving as the company’s business structure shifts toward semiconductor materials and components.

On the 29th, Heo Seon-jae, an analyst at SKSecurities, explained the target price calculation: “We applied a target price-to-earnings (P/E) ratio of 10 times to next year’s estimated earnings per share (EPS) of 2,348 won, and applied a 50% discount to the average multiple of 21 times for comparable high-margin materials and components companies.” He added, “This is not due to a deterioration in earnings fundamentals, but rather the result of conservatively factoring in delays in equipment sales and market volatility.”

FNS TECH. Co.,Ltd.’s third-quarter revenue this year is projected to reach 19.2 billion won, an 11.6% increase year-over-year, while operating profit is expected to rise 67.1% to 5.2 billion won. The operating profit margin (OPM) is forecast to hit a record high of 27.5%.

However, equipment sales are estimated to total only 5.9 billion won—a 38.9% year-over-year decline—due to delays in IT OLED investments by major clients. In contrast, sales of high-margin materials and components are projected to rise 181.5% to 13.3 billion won, driving overall profit growth. Despite sluggish equipment sales, the shift in product mix is supporting improved profitability.

FNS TECH. Co.,Ltd. is shifting its business structure from a focus on display equipment to a focus on semiconductor materials and components. The share of materials and components in total revenue rose from 28% in 2024 to 47% in 2025 and is expected to expand to 70% this year. Revenue from materials and components is also projected to rise from 24.6 billion won in 2024 and 34.8 billion won in 2025 to 46.1 billion won this year.

Key factors driving this growth include the inclusion of earnings from Taiwan-based Asahi Lamp, acquired in the third quarter of last year; increased demand for chemical mechanical polishing (CMP) pads driven by the expansion of high-bandwidth memory (HBM) and advanced process production; and the expansion of cross-selling of ultraviolet (UV) lamps to global customers. FNS TECH. Co.,Ltd. expanded its UV lamp cross-selling to Micron in the third quarter of this year, following SK hynix in the first quarter.

Since the acquisition, Asahi Lamp has recorded an operating profit margin in the 50% range for four consecutive quarters, driven by cost efficiency and increased utilization rates. Profitability of its existing core products—lamps and pads—has also improved, with the operating profit margin rising to the 30% range.

The new glass substrate business is also seen as a medium- to long-term growth driver. FNS TECH. Co.,Ltd. is pursuing businesses in CMP pads—materials for glass substrates—and wet process equipment. In the materials sector, the company completed the development of large-area CMP pads for glass substrates in the third quarter of last year and is currently conducting sample testing with multiple customers. The number of testing customers has recently expanded, and mass production shipments are expected to begin in the first half of next year.

In the equipment sector, the company has secured a lineup of etching, cleaning, plating, developing, and stripping equipment capable of handling glass substrate core and build-up processes. Based on this product portfolio spanning both materials and equipment, the company plans to respond to the future expansion of the glass substrate market.

SKSecurities projected that FNS TECH. Co.,Ltd.’s revenue for this year will be 65.9 billion won, a 10.5% decrease from the previous year. In contrast, operating profit is forecast to increase by 61.5% to 16.7 billion won, with an operating profit margin of 25.3%. The firm anticipates that a resumption of investment in IT OLED equipment and the expansion of cross-selling of materials and components to global customers will drive earnings growth next year. Next year’s revenue is projected to reach 99.4 billion won, and operating profit is expected to reach 26.1 billion won, representing increases of 50.7% and 56.1%, respectively, compared to this year.