MICube Solution
The author is an analyst for NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com -- Ed.
MICube Solution is a provider of smart factory total solutions that maximize facility operation efficiency and implement automation by collecting and analyzing real-time information regarding overall manufacturing activities. The company plans to use funding from its upcoming IPO to advance its digital twin and logistics automation solutions domains.
Offers total solutions for smart factories
MICube Solution is a smart factory total solution provider. Its largest stakeholder (post-IPO stake: 47.6%) is SP Systems, a robot and logistics system automation company. MICube Solution has executed more than 500 projects for various clients, including semiconductor, rechargeable battery, and automobile players. As of 2022, its portion of sales by business unit divided as manufacturing execution systems (MESs) 45.2%, facility online 20.6%, facility intelligence 24.5%, manufacturing DX (AI & digital twin) 8.5%, and other 1.2%.
Helps maximize manufacturing facility operation efficiency and realize logistics automation
MICubes Solution’s products collect and analyze real-time information on overall manufacturing activities in order to maximize facility operation efficiency and realize manufacturing logistics automation at production plants. Its MES and facility intelligence solutions are provided in the form of subscription-type services (SaaS) that can be used by large-, medium-, and small-sized enterprises. One of the manufacturers that adopted its systems experienced a 40%p decrease in defect rate, an 8.9%p rise in facility utilization rate, and a 22%p drop in the number of work changes. Of the estimated W10.17bn in funding to be raised via an upcoming IPO, W7.97bn is to be directed towards digital twin platforms, a next-generation growth engine, and advancement of logistics automation.
The amount of new orders received in 1Q23 totaled W10.8bn, with order backlog as of end-1Q23 standing at W12.7bn. We foresee 2023 sales of W26.5bn (+18.7% y-y) and OP of W3.2bn (+13.5% y-y; OPM of 12.1%). Based on the IPO offering price, the firm’s shares are trading at a 2023E P/E of 13.2x~15.5x. The number of public offering shares is 1.21mn (100% new shares), with the portion of shares available for distribution after listing to be 22.6%.