[Click eStock] "Ubivelox, Strong Earnings Expected from Smart Cards + Roborock"

Hana Securities analyzed on the 10th that Ubivelox has secured a growth driver for its performance due to the expansion of smart cards.

Kim Seong-ho, a researcher at Hana Securities, stated in a report on the same day, “Unlike global payment standards such as VISA and MasterCard, the domestic local card industry lacked its own standard payment specifications,” adding, “Accordingly, the KLSC (Korea Local Smart Card) standard project, led by the Credit Finance Association, was promoted, and Ubivelox was selected as the exclusive developer and has now completed development.”

Researcher Kim Seong-ho expected, “The business progress speed will be quickly reflected in the performance, and the risk of new competitors entering over the next two years is not expected to be high.”

He also noted, “The high value-added IC chip (including metal/environmentally friendly) business completed an annual capacity expansion of 800,000 units in April to respond to overseas customer demand,” and forecasted, “Among the approximately 30 countries the company has entered, Asia accounts for more than 60%, and since most of these are Southeast Asian countries in the early stages of smart card industry growth, demand is expected to be high.”

Subsidiary Thinkware, which sells the robot vacuum cleaner Roborock, is also showing concrete strong performance. Thinkware Mobile, responsible for the distribution and sales of Roborock, saw its sales rapidly grow from 33 billion KRW in 2021 to 101.8 billion KRW in 2022, and 202.9 billion KRW last year. In the first quarter of this year, sales reached 58.9 billion KRW, a 161.8% increase compared to the same period last year.

He predicted, “Although the online sales ratio was relatively high at 81% as of last year, top-line growth is expected to continue due to newly secured offline channels such as entry into 26 department store locations this year,” and added, “Considering the seasonality of Roborock sales in the second half of the year, quarterly Roborock sales in the second half are expected to grow to a level of 90 to 100 billion KRW.”