[Click eStock] "Yuil Robotics, Expecting Profit Turnaround Next Year Despite This Year's Deficit Trend"

On the 1st, Korea Investment & Securities stated that Yuil Robotics is expected to continue its deficit trend this year with projected sales of 31 billion KRW, but a return to profitability is anticipated in 2024 due to increased facility investment and automation demand from clients, expanded overseas orders mainly in the Americas, and cost reductions from the operation of a new factory, marking the first profit turnaround since 2021.

Yuil Robotics, established in 2011 and listed on the KOSDAQ market in March 2022, has secured competitiveness by offering both industrial robots and factory automation system products. In its early business phase, it focused primarily on automation systems for plastic injection molding. However, it officially entered the industrial robot business with the launch of its Cartesian robot in 2017.

Since then, the company has expanded its product lineup to include collaborative and multi-joint robots. It is estimated to have secured over 1,600 clients, with industry distribution comprising 70% automotive and secondary batteries, 10% cosmetics, and 20% daily necessities and others. The automotive and electrical/electronics sectors significantly influence order volumes. As of last year, sales were composed of 21% robots, 68% automation systems, and 11% others.

As of the third quarter cumulative basis this year, sales amounted to 19.5 billion KRW, down 28.7% year-on-year, with an operating loss of 5.8 billion KRW. Si-on Kang, a researcher at Korea Investment & Securities, explained, "Due to sluggish conditions in the upstream industries, clients' investments in automation facilities decreased, and the increase in export volumes lengthened the time gap between orders and revenue recognition. However, on an order basis, cumulative orders as of October this year reached 34.2 billion KRW, showing an 8.8% increase compared to the same period last year."

Additionally, the main causes of cost expansion were the impacts of interest rates and exchange rates, increased cost of sales due to new process project orders, and higher research and development expenses.

Profitability is expected to return next year. Researcher Kang stated, "In particular, the new Cheongna factory, which has five times the existing production capacity, is scheduled to be completed in the fourth quarter of next year. Accordingly, from the end of next year, we can expect further improvement in profit margins due to production efficiency and increased purchasing power for raw materials." The performance targets for 2025, reflecting the effect of the new factory, are sales of 74 billion KRW and operating profit of 8 billion KRW.