Pinetek, Turns to Net Profit in Q1

[Asia Economy Reporter Hyungsoo Park] FineTec announced on the 13th that it recorded a net profit of 900 million KRW on a consolidated basis in the first quarter of this year, turning to profitability. During the same period, sales and operating profit increased by 24% and 53% respectively compared to the previous quarter, reaching 22.2 billion KRW and 900 million KRW.

With growth in the display and secondary battery manufacturing equipment businesses, diversification of the business portfolio through new ventures such as the Contactless Touch System and mobile phone rear covers led to improved performance.

FineTec expects sales growth to continue this year due to the boom in the front-end market of its existing OLED bonding equipment business. According to market research firm IDC, shipments of foldable phones are projected to grow at a compound annual growth rate of 69.9%, increasing from 7.1 million units last year to 27.6 million units by 2025.

Ahead of the release of the Galaxy Fold4 and FlipZ4 in the second half of this year, FineTec anticipates an increase in orders for its core product, OLED bonding equipment for foldables. Additionally, with the growth of OLED panels for laptops and tablets, further orders for medium-sized OLED bonding equipment are expected.

FineTec’s major client, Samsung SDI, achieved sales of 4 trillion KRW in the first quarter of this year. Sales of secondary batteries are expected to increase further in the second quarter. FineTec has completed building a portfolio of secondary battery equipment, including specialized inspection equipment and Cap-Assy (upper cover assembly) equipment. Based on this, orders for secondary battery-related equipment are expected to expand.

A company representative explained, "Due to the boom in the front-end market, the display and secondary battery manufacturing equipment businesses have entered a full-fledged growth trajectory," adding, "We will focus on strengthening fundamentals and expanding shareholder value, supported by entry into new parts-related businesses."

This content was produced with the assistance of AI translation services.