[Special Stock] P&SM Mechanics Benefits from Growth in Rehabilitation Robot Front Market..."High Growth Expected"

P&SM Mechanics is showing strong performance. This is interpreted as being influenced by securities firms' analysis expecting benefits from the rapid growth of the front market.

As of 9:42 AM on the 17th, P&SM Mechanics was trading at 8,650 KRW, up 200 KRW (2.37%) compared to the previous trading day.

Kim Hak-jun, a researcher at Kiwoom Securities, said, "Currently, it is understood that about 6% of approximately 2,500 prospective customers (rehabilitation medical institutions) in Korea have introduced walking rehabilitation robots," adding, "The average price of one Walkbot is estimated to be between 300 million and 500 million KRW, and considering this, the domestic potential market size is estimated to be around 1 trillion KRW."

He explained, "Since 2022, health insurance coverage has been applied to robot rehabilitation training, improving treatment accessibility, and the introduction within medical institutions is expected to accelerate further," adding, "The combined domestic sales of walking rehabilitation robots by the three domestic companies?P&SM Mechanics, Angel Robotics, and Curexo?grew from 3.7 billion KRW in 2021 to 8.2 billion KRW last year."

He said, "So far, exports have been made to 14 countries globally, with major countries including Russia, Serbia, Turkey, Romania, and India," adding, "From July this year, a one-year sales contract for 12 units was signed with a Russian agency, confirming an increase in demand."

Kiwoom Securities forecast that P&SM Mechanics' sales and operating profit this year will increase by 25% and 62% year-on-year to 7.5 billion KRW and 2.1 billion KRW, respectively. He explained, "While overseas sales are expected to grow rapidly, domestic sales are expected to decline significantly compared to the previous year due to medical strikes, limiting the sales growth rate."

Next year, sales and operating profit are expected to increase by 34% and 57% year-on-year to 10 billion KRW and 3.3 billion KRW, respectively. He said, "Next year, we expect performance growth due to the expansion of overseas sales channels such as Mexico and Saudi Arabia, recovery of domestic sales, and new product launches."