Meritz Securities has lowered its target price for Pine M-Tech from 14,000 won to 12,000 won, reflecting a downturn in the smartphone market due to rising memory prices. However, the firm anticipates benefits from the upcoming launch of new foldable smartphones by domestic and North American clients, deeming the current stock price a good opportunity for increased investment.
Yang Seung-soo, a researcher at Meritz Securities, stated, "In light of the smartphone market's decline due to rising memory prices, we have revised our forecasts for foldable panel shipments down by 18.2% and 30.0% for this year and next, respectively. Reflecting these adjustments, the fair stock price is set at 12,000 won, while we maintain a 'buy' rating."
Despite the adjustments, Yang believes the growth potential in the foldable market remains strong.
He noted, "The initial market response to Samsung's Galaxy Z Fold 8, released this year, has been very positive. We expect Samsung's foldable pre-order sales to reach an all-time high, leading to an upward revision of annual foldable shipment forecasts centered around the Fold 8."
Yang added, "This year, a North American smartphone company is set to unveil its first foldable smartphone at a September Unpacked event, which could lead to a differentiated stock price trend compared to the past. The entry of North American companies into the market will broaden the demand for foldables beyond Android users to include non-Android users and tablet demand."
He further stated, "Pine M-Tech is the only company that can benefit from the launch of new foldable products for both domestic and North American clients this year. For domestic clients, the recovery of market share and an increase in average selling price (ASP) are key due to the expanded application of laser etching on metal plates. For North American clients, successful initial yield rates are expected to lead to a significant market share."
Yang concluded, "The upward trend in performance through expanded deliveries for foldables starting in the second quarter remains valid. Given that Pine M-Tech is the only company with a high proportion of foldable sales benefiting both domestic and North American clients, we view the current stock price as an opportune time for increased investment."
* This article has been translated by AI.
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