Plans to Expand Robot Production to 18,000 Units per Year

The author is an analyst of NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com. -- Ed. 

 

Neuromeka’s cobot automation platform differentiates the firm from its rivals. Expanding out from the small/mid-sized manufacturing arena, the company is now generating earnings from F&B industry supply ventures as well. It plans to marshal funds obtained through an upcoming public offering to expand its production facilities to produce up to 18,000 robot units pa.

Leads Korea’s robot-as-a-service (RaaS) market

Neuromeka is a collaborative robot (cobot) manufacturer established in 2013. In Sep 2017, it rolled out the Indy 7, launching its flagship cobot series. As of end-1H22, its sales broke down as cobots 56%, logistics robots 3%, robot components 11%, merchandise 1%, and system integration 29%.

Having in-house created an automation platform that includes technologies related to safety and teaching, the company stands out from its competitors, which manufacture only hardware. Neuromeka is currently expanding its business scope out from its small/mid-sized products for manufacturing applications (including refrigerator production (press machines), air conditioner production (hood welding technology), and CNC machine tending), to F&B industry clients, including chicken cooking robot supply towards Kyochon and preliminary supply towards Go Pizza (which could possibly generate additional contracts for franchisees and overseas).

Plans to expand robot production to 18,000 units pa

Leveraging W3bn out of W20.7bn in funding raised via an upcoming public offering, Neuromeka plans to build manufacturing facilities for producing core parts, including 4 types of frameless motors (2023) and 6 types of harmonic/ cycloid reducers (2024). It also aims to invest W7bn of the funds to be gathered through the IPO plus an additional W7bn (follow-up investment) to expand its production facilities so that it can put out 18,000 robot units pa (Indy cobots: 12,000 pa; ICoN co-industrial robots: 6,000 units pa) at its plant #3 in Pohang.

Company guidance targets 2023 sales of W23.73bn (+83.4% y-y) and OP of W1.7bn (TTP y-y; OPM of 7.2%). The IPO price band was calculated applying a 2022E P/E of 14.8~17.8x based upon 2025F earnings guidance (discounted by annual rate of 15%). The number of shares for public offering is to total 1.5mn (100% new shares). After listing, 34.2% of the shares will be floated on the market.
 

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