[Click eStock] "FineMTech, Earnings Recovery Starting This Year... Target Price Down"

Target Price Lowered from 9,000 KRW to 8,000 KRW

Meritz Securities evaluated on the 21st that it is time to consider upside factors rather than short-term poor performance for Pine M Tech, and lowered the target stock price from the previous 9,000 KRW to 8,000 KRW. The investment opinion was maintained as 'Buy.'

Researcher Yang Seung-su of Meritz Securities explained, "The fair price was lowered reflecting adjustments in earnings estimates," adding, "It is a time to consider upside factors rather than short-term poor performance, and the investment attractiveness is also high."

Pine M Tech recorded an operating loss of 14.4 billion KRW in the fourth quarter of last year, turning to a deficit compared to the same period the previous year. Researcher Yang analyzed, "Due to the significant loss in the fourth quarter, the company also turned to a deficit on an annual basis last year," and "The main causes of the performance deterioration were the increase in fixed costs due to new investments, sluggish shipments of foldable smartphones from client companies, and yield decline in some models."

There is an opinion that expectations for performance recovery should be raised again starting this year. Researcher Yang said, "Domestic smartphone clients are expected to increase shipments this year due to the base effect from last year. In particular, the expansion of the lineup such as entry-level flip and dual folding will contribute to the increase in shipments," and added, "The expansion of foldable OLED supply in the Greater China market will also act as a positive factor for performance improvement."

Following recovery this year, performance is expected to leap further next year. Researcher Yang said, "In 2026, North American set manufacturers are expected to enter the foldable smartphone market, and a performance rebound through this is anticipated," adding, "We expect the shipment volume of foldable smartphones by North American set manufacturers to be 15 million units on a set basis."

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