Incheon Robot Complex to Boost Synergies
The authors are analysts of KB Securities. They can be reached at hyg0619@kbfg.com and hdsung@kbfg.com, respectively. -- Ed.
Property to be acquired for new plant
— On Oct 17, Yuil Robotics announced that it will acquire a KRW26.0bn property.
— The acquisition is a massive investment, equivalent to 68.32% of total assets. The 26,045.4㎡ property, located in Incheon (Cheongna-dong, Seo-gu), will be used for a third plant.
— The additional plant (to be completed 2H23-early 2024) will more than triple Yuil Robotics’ capacity (two existing plants total under 6611㎡).
— IPO funds will be used for construction, so additional funding will not be required. Thus, the stock price should not be negatively impacted by the plant investment.
Incheon robot complex to boost synergies
— Incheon Robot Land is a massive government project headed by the Ministry of Trade, Industry and Energy and the Incheon municipal government. The complex seeks to facilitate innovation growth by integrating and nurturing robot-related businesses.
— The project, which will channel KRW711.3bn into a 760k ㎡ site (to be completed late 2024), aims to establish a comprehensive industrial hub (e.g., R&D, production, testing, demand creation) that encompasses industrial robots, service robots and smart robots.
— As Korea’s largest robot complex, Incheon Robot Land is expected to generate AI and IT synergies (e.g., IoT, ICT) within the quaternary sector.
— The hub will include support services (e.g., legal, tax, finance) in its attempt to become a one-stop facility for tech industry research.
Complete industrial robot/automation system lineup to sharpen competitive edge
— With its complete product lineup encompassing industrial robots and automation systems, Yuil Robotics is capable of winning orders for turnkey projects.
— The third plant will be used to increase production of mid-/large-size industrial robots (100kg and above) and collaborative robots equipped with AI vision.
— Current testing of products should yield tangible results starting in 4Q22.
— Beginning in 2023, Yuil Robotics will likely be unable to keep up with downstream clients’ growing automation demand, even with its two existing factories operating at full capacity.