Two New Models to Be Released in 3Q22
The author is an analyst of NH Investment & Securities. He can be reached at midas.sohn@nhqv.com. -- Ed.
At Everybot, earnings growth is being led by the firm’s high-end robot mop. New products such as a low-end robot mop and a robot vacuum cleaner are set for release in 3Q22. On the back of lineup expansion, the company should enjoy accelerating sales growth from 2H22.
High-end model Three Spin leading growth
Everybot’s main products include robot mops Edge (low-end, launched in Mar 2019) and Three Spin (high-end, Jun 2021). While sales of its Edge model are on the decline, having slid from W30bn (sales portion of 61%) in 2020 to W21.2bn (41.5%) in 2021 and W1.3bn (9.95%) as of 1Q22, sales of Three Spin are trending up from W12.9bn (25.2%) in 2021 to W9.6bn (75.4%) in 1Q22, leading overall growth.
Meanwhile, sales of robot mops sold as merchandise are slowing in the absence of new lineups.
Two new models to be released in 3Q22
In 3Q22, the company plans to release RS350 (successor to the Edge) and Q5 (robot vacuum cleaner). Of note, the sales price of RS350 is expected to be higher than that of the Edge. Sales of high-end model Three Spin are already increasing, and the addition of effects from new product launches in 2H22 should result in accelerating sales growth for the firm in 2022.
Everybot is expected to log 2022 sales and OP of W61.3bn and W11.3bn, respectively. However, OPM is likely to decline due to increases in labor and R&D costs, alongside head office relocation costs and marketing costs incurred from the new product launches.
As Samsung Electronics (SEC) is predicted to launch its own wearable robots in 2H22, interest in robot-related companies should begin to climb. Of note, Everybot hired an SEC executive as its vice president this year, and is currently the ODM manufacturer of SEC’s robot mops.