[Click eStock] "Hizen R&M, a Money-Making Robot Company"

Independent research firm FS Research analyzed on the 7th that Haizen R&M is expected to benefit from the explosive growth of the next-generation robot market.

Haizen R&M has been expanding its business in earnest since acquiring the industrial motor division of Otis Elevator in 2008, after being established in 2007. This division originated from LG Electronics' motor division and has a history of producing general-purpose motors since the 1960s, giving it a business history of 60 years.

As of the first half of this year, the sales composition ratio consists of 81% general-purpose motors, 15% servo motors and drives, and 4.2% motors and inverters for EVs. General-purpose motors are widely used in power plants, water and sewage treatment, drainage pumps, and the petrochemical industry, and are oligopolistic players occupying 80% of the domestic market along with Hyosung Heavy Industries and HD Hyundai Electric.

In the servo motor division, motors and drive modules for collaborative robots, low-voltage motors for AMRs, and servo motors are produced, mainly serving robot companies as customers. Motors and inverters for EVs are used for golf carts, buses, agricultural machinery, and small electric vehicles, which are not handled by completed car manufacturers.

Researcher Hwang Se-hwan of FS Research stated, “Recently, companies like Tesla have been continuously unveiling humanoid robots, and it is expected that within a few years they will be deployed on actual production lines to work alongside humans.” He added, “Humanoid robots have 18 to 75 active joints, compared to 3 to 6 used in existing industrial robots, so the robot actuator market is expected to increase explosively as the humanoid robot market grows.”

Researcher Hwang also said, “The company is already collaborating with numerous domestic firms. For Company A, development of a 5kg-class collaborative robot and AMR actuators has been completed, and for Company B, three types of motors are currently being tested.” He continued, “For Company C, three types of motors have been developed and mass production is confirmed for 2024, and for Company D, actuators for space launch vehicle fuel injection pumps were supplied and successfully tested in a trial launch.”

He also pointed out the EV drive module (motor + inverter) business as another growth axis for Haizen R&M. He said, “The company is considering entering the Indian market, where the eco-friendly e-bike market is growing.” He added, “A joint venture with a local Indian corporation is also being considered, and if materialized, it will be a positive momentum for the stock price.”

Furthermore, he analyzed, “The company owns a factory of 10,000 pyeong in Changwon, and currently the second floor has available space.” He explained, “The capacity based on sales is about 130 billion KRW, and since about 70 billion KRW in sales are generated annually from general-purpose motors, if demand increases additionally for EV drive modules or especially in the robot sector, capacity is likely to become insufficient.”

He added, “Therefore, the company plans to proactively invest in preparation for the increasing future demand, using IPO funds.” He explained, “Once capacity expansion is completed, facilities capable of up to 380 billion KRW in sales will be set up.”

Finally, he said, “Based on its long-standing experience in general-purpose motors, the company achieves annual sales of around 70 billion KRW and operating profit of about 5 billion KRW, and based on the profits generated here, it continuously invests in robots and EVs, sustaining investments in industries that can grow in the mid to long term.” He added, “Although it has not shown significant growth in performance in new industries immediately, considering the continuous growth of the upstream industries, the company’s business scale is likely to expand, making it a company worth watching.”