AI Machine Vision Business Expanding Rapidly
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed.
We expect the penetration of AI machine vision to accelerate this year, as adoption of the technology is both becoming a trend and spreading into such arenas as auto/parts, apparel, aircraft, and smart farms.
AI machine vision business expanding rapidly
We estimate Laon People’s 2020 AI machine vision sales at W8.9bn (similar y-y). Given that sales which were expected to be reflected in 2020 earnings are to be booked in 2021 due to the Covid-19 pandemic, the firm’s AI machine vision sales should soar 190% y-y to W26.7bn this year.
The scope of application for AI machine vision should widen in 2021. In the auto/parts sector, tests are being conducted to see if Laon People’s equipment can be used to both identify exterior defects in cars and assess the value of used cars. Also, in line with the government’s active smart farm support policies, analytical solutions based on AI machine vision are being provided for the cultivation of agricultural products. AI machine vision solutions are also being offered for the transportation and dental sectors. Of note, US-based machine vision product provider Cognex acquired Swiss-based AI machine vision company Vidi Systems in Apr 2017 before taking over Korea-based AI machine vision firm Sualab for around W230bn in Oct 2019.
Sluggish businesses to see recovery
We expect the camera module inspection solutions business, a main culprit of Laon People’s likely sluggish 2020 earnings, to record 2020 sales of W4.6bn (-76.4% y-y). In 2021, however, its sales should skyrocket 95% y-y to W9.1bn. Laon People’s golf sensor business provides golf sensors for Kakao VX, Korea’s second-largest screen golf club operator. Golf sensor shipments have soared more than 200% y-y in 1Q21 in line with an increasing number of golfers flocking to screen golf clubs.