Leader in Robotics-based Logistics Automation
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed.
With most domestic cathode materials players having adopted Kornic Automation’s automated inspection solution (K-LAS), related sales are set to rise in line with capacity expansion at these clients. From 2023, the firm is to supply solutions to makers of anode materials and electrolytes for rechargeable batteries.
Rechargeable battery materials inspection system deserves notice
In 2023, we believe that Kornic Automation will enjoy strong earnings growth, led by its smart factory division. Created in 2020, the division’s main products are its: 1) K-laboratory automation system (K-LAS); and 2) K-material-handling system (K-MAS).
K-LAS is an automated distribution and measurement solution for sample materials. It is currently being employed for quality control inspections by Korean cathode materials producers. Prior to the deployment of K-LAS, cathode materials quality inspections generally required 25~30 engineers working in 3 shifts, a system which inherently carried the problem of differing competency levels between the individual inspection engineers. However, upon adoption of K-LAS, the number of required inspection engineers is reduced to 6, and measurement consistency also improves greatly, leading to a sharp narrowing in confidence level deviation. Accordingly, most Korean cathode materials players are now deploying K-LAS into their manufacturing processes.
With each manufacturing plant requiring its own K-LAS setup, Kornic Automation is to benefit going forward from steady capacity expansion at domestic cathode materials makers. We forecast that related sales will surge to W13.1bn (+173% y-y) in 2023. We further note that Kornic Automation is currently conducting testing to supply solutions to producers of anode materials and electrolytes for rechargeable batteries.
Leader in robotics-based logistics automation
K-MAS, which benchmarks Amazon’s robotic-based logistics automation solution Kiva, is adopted at CJ Logistics and Coupang’s logistics warehouses. Currently, a number of logistics firms are actively investing to develop advanced logistics management systems. Based upon its track record in developing large-scale logistics centers, Kornic Automation is aiming to win more orders from logistics players going forward.
Due to a wide semicon-related sales portion, sales at the control SW solutions division will likely drop 20% y-y in 2023 to W6.8bn. However, considering anticipated brisk sales growth of 72% y-y for the smart factory division, we project overall 2023 sales of W36.2bn (+22.2% y-y) and OP of W4.5bn (+23.9% y-y).