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Foldable momentum building; IT OLED-related losses to narrow

Maintain Buy rating and raise TP to W25,000

We raise our target price for BH to W25,000 (from W23,000), reflecting upward revisions to our 2026 EPS estimate. Our revised forecast incorporates a higher foldables shipment assumption for a key North American customer (5.5mn → 6.6mn units) as well as additional demand for the iPhone 17 over its extended product cycle.

We now forecast operating profit at W103bn for 2026 and W127.6bn for 2027. Earnings growth over the medium/long term should be driven by growth in the foldables segment and normalization of the IT OLED segment. Revenue from FPCBs for foldable iPhone models is projected at W175.5bn in 2026 and W310.3bn in 2027; within Samsung Display, BH is expected to secure virtually all orders for panels manufactured in-house and around 80% of orders for externally produced panels, reinforcing its dominant positioning and underpinning structural revenue growth.

IT OLED-related losses to narrow; foldable iPhone mass production to begin

We expect PCB mass production for the North American customer’s tablets to begin in 2Q26, driving full-year IT OLED-related revenue from W20.7bn in 2025 to W55.9bn in 2026. As a result, losses should shrink meaningfully, with profitability improving as fixed-cost pressures ease. Meanwhile, assuming Samsung Display begins foldable display production in June, BH’s FPCB mass production should commence in May. Taking this into account, we estimate foldable iPhone-related FPCB revenue at W175.5bn in 2026 and W310.3bn in 2027.

Although rising memory prices may increase device BOM burdens, we note that BH’s shipments to its key North American customer are concentrated in the premium segment, where memory accounts for a smaller portion of total costs. Accordingly, from 2026 onward, we expect the company to enter a more pronounced structural growth phase, supported by foldables revenue contributions from North America and expanding exposure to high-end FPCBs. If the North American customer leverages its strategic opportunity to gain market share and passes through memory cost increases at a reasonable level, concerns regarding weaker sales of next-generation models may also ease.