[Trading Trend] SI Flex Achieves a 'Quantum Jump' by Securing Apple's Supply Chain, Grows After PEF Acquisition

Flexible printed circuit board (FPCB) manufacturing specialist SI Flex has emerged as a 'hot potato' in the over-the-counter (OTC) stock market, showing a steep upward trend in earnings following its acquisition by private equity fund (PEF) operator Well to Sea Investment. The unification of its production bases to Vietnam and entry into the supply chain of its largest global client, Apple, have combined to achieve explosive top-line growth and profitability improvement simultaneously.

Achieving 'Record-Breaking Performance' through Entry into Apple's Supply Chain and Unification of Production in Vietnam

SI Flex's recent performance indicators are truly remarkable. On a separate financial statement basis, its performance of KRW 335.1 billion in sales and KRW 15.1 billion in operating profit in 2023 greatly solidified its internal stability to KRW 317.8 billion in sales and KRW 18.9 billion in operating profit in 2024. Following this, it recorded an explosive quantum jump in 2025 with sales of KRW 486.3 billion and an operating profit of KRW 39.3 billion. On a consolidated basis, it has already surpassed KRW 748 billion in sales and KRW 60.5 billion in operating profit in 2024, stepping up as a mega-level parts supplier.

At the core of this dramatic performance improvement is 'Apple'. Originally a key supplier for Samsung Electronics' Mobile Communications Business and Samsung Display, SI Flex began supplying rigid-flexible printed circuit boards (RFPCB) starting with the Apple iPhone 16 series launched in the second half of the year, thereby securing both the first and second largest global smartphone manufacturers as clients. In particular, it successfully replaced the position left by the former supplier Youngpoong Electronics, which was excluded due to quality issues, alongside BH, generating a high-single-digit profit margin.

Proactive reorganization of its production bases also played a part in this. SI Flex maximized its cost competitiveness by selling off its factories dispersed in Ansan, South Korea, and Weihai, China, and unifying its production focus into its Vietnam subsidiary (SI Flex Vietnam), the main production hub of its core clients. Currently, SI Flex has relocated its headquarters to Yeongtong, Suwon, and is concentrating its capabilities on research and development (R&D).

Corporate Value Proven During the Private Equity Acquisition Process

The successful investment attraction and mergers and acquisitions (M&A) story also prove SI Flex's heightened fundamentals. When SI Flex attracted a KRW 40 billion investment from the private equity fund Dominus Investment in 2020, it was recognized with a corporate value of approximately KRW 300 billion.

As its performance continued to soar thereafter, Well to Sea Investment secured management rights in 2025 by acquiring an 85% stake held by former CEO Won Dong-il and related parties for KRW 430 billion. At this time, the corporate value estimated by the market reached around KRW 500 billion.

In particular, Well to Sea's acquisition financing process drew significant attention from the industry. Initially, it planned to partially utilize acquisition financing, but as the investments from more than 10 institutional investors (LPs) such as mutual aid associations and capital firms far exceeded the target amount, it easily raised the funds with 100% equity (capital) without any acquisition financing. Furthermore, the seller, former CEO Won Dong-il, reinvested about KRW 86 billion to KRW 100 billion of the sale proceeds as a subordinated investor, demonstrating strong confidence in the company's future growth.

Traded in the OTC Market on Expectations of Performance Improvement... Growing Expectations for a Future IPO

Since the acquisition by Well to Sea, the effect of thorough cost control and the full-scale production of Apple-bound volumes have created a synergy, causing the company's performance to draw an increasingly upward curve. This improving trend is also being reflected as anticipation in the unlisted OTC stock market.

In the OTC market, buying sentiment for SI Flex's stock began to flow in from the end of February this year, and trading began to gradually form. The corporate value, which was formed in the KRW 320 billion range at the end of February, has reflected clear expectations of performance improvement and has been trading above the KRW 360 billion range since mid-March.

The industry predicts that SI Flex will enjoy an unprecedented boom for the time being by settling into Apple's supply chain and maximizing the yield and cost competitiveness of its Vietnam factory. The financial investment industry's attention is focused on whether SI Flex, which has achieved successful fundamental improvement and external expansion under the private equity system, will be able to lead this to a successful initial public offering (IPO) in the future.