[Asia Economy Reporter Hyungsoo Park] Motrex, a developer of in-vehicle infotainment (IVI) systems, achieved record-high performance in the first half of the year, driven by strong exports of its main products and improved results from its subsidiary, Jeonjin Construction Robot.
As of 1:07 PM on the 12th, Motrex was trading at 6,930 KRW, up 10.0% from the previous day.
Motrex announced that on a consolidated financial statement basis, it recorded sales of 212.9 billion KRW and operating profit of 18.2 billion KRW in the first half of this year. These figures represent increases of 20.2% and 1031.3%, respectively, compared to the same period last year. Net profit turned positive at 17.8 billion KRW. In the first half of last year, sales were 177.1 billion KRW and operating profit was 1.7 billion KRW.
Motrex supplies localized audio, video, and navigation (AVN) systems to regions where large-scale vehicle sales by its domestic major automobile manufacturer clients have not occurred.
As the global automobile market recovered from the impact of COVID-19 last year, Motrex’s flagship products, AVN and AVNT (Audio Video Navigation Telematics), created a sensation in overseas markets, driving the half-year performance. Sales of high value-added products such as Rear Seat Entertainment (RSE) and air purifiers also increased, contributing to profitability growth.
The company expects the purpose-built mobility (PBV) market for electric and autonomous vehicles to grow rapidly. Motrex is anticipated to continue steady growth as a company with diverse technologies and project execution capabilities in the PBV sector.
Improved performance was also supported by increased sales from its subsidiary Jeonjin Construction Robot, benefiting from the global economic recovery. Jeonjin Construction Robot, which manufactures construction machinery and special vehicles, is expected to grow as demand for construction machinery in North America rises due to the infrastructure stimulus policies of the Joe Biden U.S. administration. North America is the largest market for Jeonjin Construction Robot’s sales, and the company expects sales growth to be even more pronounced.
Lee Hyun-hwan, CEO of Motrex, said, "Following the record-high performance in the first quarter, we achieved remarkable management results in the second quarter as well," adding, "We expect to achieve the highest performance ever this year."
He continued, "Based on the ESG bonds successfully issued recently as the first mid-sized company, we will accelerate our eco-friendly mobility business."
Motrex recently issued ESG bonds worth 10 billion KRW. The funds will be invested in research and development (R&D) of eco-friendly vehicle electronic components such as the autonomous electric taxi AVNT and hydrogen electric truck HMI (Human Machine Interface) through 2023.
The autonomous electric taxi AVNT is a display-type vehicle control device that assists driving by delivering real-time traffic information and weather updates, while providing a multimedia experience. Autonomous vehicles reduce traffic congestion costs and environmental pollution. Electric taxis can reduce pollutant emissions compared to internal combustion engine vehicles.
The hydrogen electric truck HMI creates an environment where the driver and vehicle can communicate interactively. Through the HMI, the driver can check and control vehicle status and receive various information to assist driving. The hydrogen electric truck, a single domestic model with a 190kW large truck, is being exported. It is expected to have a higher level of eco-friendly effects compared to conventional internal combustion engine trucks, particularly contributing to reductions in ultrafine dust and carbon dioxide emissions.
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