[Click eStock] "LIG Nex1, Expecting Synergy in Robotics and Defense... Target Price Up"

Hyundai Motor Securities raised the target price for LIG Nex1 to 160,000 won on the 13th, stating that "synergies will be secured by combining defense technology with the US robotics company Ghost Robotics (GRC), which announced its plan to acquire shares." The buy rating was also maintained.

On the same day, researchers Minjeong Kwak and Yujin Kim of Hyundai Motor Securities explained, "LIG Nex1 announced on the 8th that it will acquire 60% of the shares of GRC, a quadruped defense robot company. Out of the total shares worth 400 million dollars (approximately 526.5 billion won), it plans to acquire 314.9 billion won worth, and established a special purpose company LNGR for the acquisition."

Researcher Kwak said, "Through the acquisition of GRC, LIG Nex1 is expected to accelerate its entry into the US defense market with products such as Hyungung, Cheongung, and Shingung, in addition to Bigung, which is currently being exported to the US. It is significant in that it will make a full-scale entry into the defense robot market by combining products such as artificial intelligence (AI) sensors."

According to US media, GRC is headquartered in Philadelphia. It supplies robots to the US federal government and allied governments. Hundreds of Vision 60 'robot dogs' are already used for perimeter security at US Air Force bases. The price is 165,000 dollars (approximately 217.1 million won). It can operate on almost all terrains including rocks, sand, hills, ice, snow, and stairs. It operates in temperatures ranging from minus 40 degrees to plus 54 degrees Celsius. With a single charge, it can travel more than 10 km at speeds of up to 9.6 km/h.

Researcher Kwak added, "Considering that Boston Dynamics, acquired by Hyundai Motor with an 80% stake in 2021, had a corporate value of 1.1 billion dollars (approximately 1.24 trillion won), LIG Nex1's acquisition of GRC is judged to be at a reasonable price," and "the target price was raised due to securing future growth engines."