Fine M-Tec (441270) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Fine M-Tec makes the internal hinge — a metal component that supports the OLED display from the inside as a foldable phone bends and unfolds. Most of its revenue comes from foldable internal hinges, so its results ride directly on global foldable-phone shipments and on whether new models adopt its parts. Revenue turned positive again in Q1 2026, but after back-to-back net losses in 2024 and 2025, a return to sustained profitability is still at the confirmation stage, and in May the company decided to issue its 10th round of convertible bonds, adding the possibility of future share dilution. The point worth watching is that in a structure where rising foldable shipments create strong revenue and profit leverage, a forward P/E of 10.1x and a forward P/B of 1.19x sit below peers and look attractive; the flip side is that results hinge on customers' new-model schedules, so quarterly swings are large, and an interest-coverage ratio below 1x plus convertible-bond dilution could slow the pace of recovery.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Smartphone Components” (Semiconductors & IT Components · Electronic Components), a type typically read first through forward P/E.
Smartphone components hinge on set-makers' new-model cycles and sales flow, so what lies ahead matters more than earnings already booked. That makes forward P/E — pricing the shares against expected earnings — the first metric.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 37.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.7% higher than a year earlier.
- ROE is -7.6% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.8%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hong Seong-cheon 14.97% (individual)
Controlling bloc incl. related parties 27.91%
With the controlling bloc holding 28%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Fine M-Tec makes the internal hinge — a metal component that supports the OLED display from the inside as a foldable phone bends and unfolds. Its official product lineup splits into four branches — convergence displays (foldable internal hinges), hinge modules, mobile components, and automotive components — and most revenue comes from foldable internal hinges (by the company's official product classification). In effect, the company's earnings depend on how many global foldable phones sell and how much of the hinge that goes inside them Fine M-Tec supplies. Because foldable shipments and new-model adoption translate directly into revenue, the swing in quarterly results within a single year tends to be large, tracking customers' new-product launch schedules.
The latest close is ₩8,300 and the market capitalization is ₩349.0 billion. The price sits above its 20-day moving average (₩6,804) and above its 60-day moving average (₩7,632). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 63.4, a neutral level. The one-month change is +34.3%, the three-month change is -23.0%, and the position relative to the 52-week high is -40.0%. Relative strength versus the KOSDAQ is 62 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 62% of all stocks. Over the past three months it outpaced the index by 20.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a confirmed annual (2025) basis, the P/E ratio (how many times one year's net profit the price represents) is not calculable because net profit was in the red. That said, this company is at an inflection point where profit is bottoming out and turning, so a forward figure reflecting this year's recovery is closer to reality than a trailing number built from the past year's results. The forward P/E reflecting this year's profit is below the peer median, putting the price on the cheap side relative to earnings. The P/B (how many times net assets the price represents) is 1.67x, below the industry median (2.36x), and the forward P/B falls further to 1.19x. ROE (how much is earned in a year on equity) is -7.6%, still in loss-making territory, and the operating margin of 0.8% is near breakeven. The debt ratio (debt relative to equity) of 106.7% is an ordinary level where equity and debt are similar, but with an interest-coverage ratio below 1x — meaning operating earnings barely cover interest — this is a point worth keeping an eye on.
Annual revenue jumped from ₩116.4 billion in 2022 to ₩380.0 billion in 2023 and ₩382.2 billion in 2024, then fell 37.4% to ₩239.1 billion in 2025 as a shipment gap at a foldable customer took hold (2021 data is unverifiable). Operating profit also swung widely — a ₩20.3 billion profit in 2023, a ₩7.9 billion loss in 2024, and ₩1.9 billion in 2025 — and net profit was in the red in both 2024 and 2025. This is the classic pattern of a business that rides its foldable customers' shipment cycle. Yet in the most recent quarter, Q1 2026, revenue rose 5.7% year on year to ₩46.1 billion, returning to growth, and quarterly net profit swung to a ₩2.5 billion profit (operating profit was a ₩2.2 billion loss). The forward P/E on this year's expected profit comes down because the foldable volume that was empty during last year's shipment gap is being refilled and internal hinges are being adopted in new models, so revenue recovers and, once fixed costs are cleared, profit leverage quickly comes to life. With the foldable market itself in an expansion phase and the company holding a supply position in a core component, results follow as shipments rise.
The weightiest recent development is fundraising. On May 21, 2026 the company decided to issue its 10th round of convertible bonds (bonds that can be exchanged for shares), and on May 29 the results of that issuance were disclosed. Convertible bonds are a way to raise operating and capital funds, but they cut both ways: when later converted into shares, the share count rises and existing shareholders' stakes can be diluted. Over the same period a series of large-holding and insider stake-change disclosures followed, and the Q1 2026 quarterly report on May 15 confirmed signs of a revenue recovery. In April there was also a decision on a debt guarantee for another party, and whether it is support for an affiliate or trading partner is something to confirm in follow-up materials.
The strengths are clear: a core business in foldable internal hinges and a supply position with global customers, a return to positive revenue in Q1 2026, and a forward P/E (10.1x) and forward P/B (1.19x) that reflect this year's recovery and sit below peers, putting the price on the cheap side relative to earnings and assets. In a phase where foldable shipments are rising, revenue and profit leverage can work strongly, so the valuation appeal sharpens as the recovery continues. The points to watch are that results hinge on customers' new-model schedules, so quarterly swings are large; that a settled return to profit after back-to-back net losses in 2024 and 2025 is still at the confirmation stage; that the interest-coverage ratio is below 1x; and that convertible bonds have added dilution potential. In short, this is a stock where a continued recovery in foldable shipments and new-model adoption turns the low forward valuation into a clear strength, while delayed shipments or a mix of interest burden and dilution slows the pace of recovery. The checkpoints are whether quarterly revenue recovery carries through to full-year profitability and how large the convertible-bond dilution turns out to be.
🔎 Valuation vs peers Inconclusive
Stocks close in business character within the foldable/mobile-component and electronic-component/display space were picked directly for comparison. Because Fine M-Tec is loss-making, a P/E comparison is not possible, so its position was gauged by P/B and ROE.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sekonix Hi-Tech | 2.24x | 0.46x | 17.59% |
| Korea Circuit | 28.22x | 2.70x | 10.74% |
| Seojin System | — | 2.74x | -13.80% |
(a) Looking at position versus peers: within the same mobile-component group, Sekonix is profitable with a very low P/B, while Korea Circuit and Seojin System carry P/B in the 6x–7x range, leaving Fine M-Tec (1.64x) somewhere in the middle. (b) Against the industry median its P/B is at a discount, but this discount is more reasonably read as the market's markdown for losses and earnings volatility than as being 'cheap.' (c) On a confirmed (trailing) basis there is no P/E because of the losses, and the forward figure is not a company outlook but an estimate leaning on a DART seasonality approximation (2026 revenue of about ₩277.1 billion), so trailing and forward differ greatly in character at this earnings inflection. Accordingly, until it is confirmed whether a recovery in foldable shipments normalizes profit, it is hard to declare the stock under- or overvalued, so the verdict is left inconclusive.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩93.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩8,300 and the market capitalization is ₩349.0 billion. The price sits above its 20-day moving average (₩6,804) and above its 60-day moving average (₩7,632). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 63.4, a neutral level. The one-month change is +34.3%, the three-month change is -23.0%, and the position relative to the 52-week high is -40.0%. Relative strength versus the KOSDAQ is 62 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 62% of all stocks. Over the past three months it outpaced the index by 20.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +19.96% / 6M +22.41% / 12M -23.03%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.67x is above the sector median (0.86x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -7.6%, below the sector average (4.0%). The operating margin is 0.8%. The debt ratio is 104.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $267.0M | $268.5M | $168.0M | -37.43% ↓ slower |
| Operating profit | $14.3M | -$5.6M | $1.4M | — |
| Net profit | $7.4M | -$12.1M | -$10.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | $81.8M | $267.0M | $268.5M | $168.0M |
| Operating profit | — | $3.8M | $14.3M | -$5.6M | $1.4M |
| Net profit | — | -$5.2M | $7.4M | -$12.1M | -$10.4M |
| Revenue CAGR | 3-yr avg 27.13% | ||||
Revenue fell 37.4% year over year (2023 ₩380.0 billion → 2024 ₩382.2 billion → 2025 ₩239.1 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Over the 4 years on record, revenue compound annual growth (CAGR) is 27.1%. The two-year revenue CAGR is -20.7%. In the most recent quarter (Q1 2026), revenue was 5.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 98.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 37.4% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29FilingDisclosure of the results of the 10th round of convertible-bond issuance (voluntary disclosure). Material announcing that the previously decided convertible-bond issuance was actually completed.Positive for securing operating and capital funds, but with future conversion into shares raising the share count and creating potential dilution, the conversion terms should be checked alongside it. Source
- 2026-05-21FilingMaterial-fact report (decision to issue convertible bonds). The board decided to issue bonds convertible into shares to raise funds.A near-term cash inflow, but over the medium term it can lead to dilution of shareholder value depending on the conversion price and the number of convertible shares, so it should be viewed together with the financial structure. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Quarterly revenue confirmed at ₩46.1 billion (up 5.7% year on year), operating profit at a ₩2.2 billion loss, and net profit at a ₩2.5 billion profit.A return to revenue growth is a recovery signal, but with the operating line still in the red, whether profitability settles needs to be confirmed through the next quarter. Source
- 2026-04-10UpdateDecision on a debt guarantee for another party. A matter in which the company agreed to guarantee an external party's debt.Depending on the credit standing of the guaranteed party, this could act as a contingent liability, so it is safest to confirm the size of the guarantee and the counterparty. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-29Disclosure
- 2026-05-21Material-fact report
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-13OwnershipOwnership-change filing
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30Disclosure
- 2026-04-29OwnershipOwnership-change filing
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.