P&S Mechanics Rises 70% in Just Over a Month

Samsung Electronics Highlights Robot Stocks by Entering Humanoid Competition
High Growth Expected Overseas This Year... "Benefiting from Global Rehabilitation Robot Growth"

The stock price of P&SMECHANICS, a medical robot manufacturer, has surged nearly 70% in just over a month. This is attributed to expectations of high growth overseas this year and the recent spotlight on robot-related stocks in the domestic stock market.

According to the financial investment industry on the 6th, P&SMECHANICS' stock price reached 12,190 KRW on the 3rd of this month. This marks a 68.37% increase compared to the closing price of 7,240 KRW on December 9 last year.

This upward trend is believed to be due to the recent emphasis on robot-related stocks in the stock market. Samsung Electronics has increased its stake in Rainbow Robotics to become the largest shareholder and has established the Future Robot Promotion Team, signaling a full-scale entry into the robot business. Earlier, Hyundai Motor Group also acquired robotics company Boston Dynamics in 2021.

Researcher Yang Seung-yoon from Eugene Investment & Securities said, "Competition in investment and development of humanoid robots and robot artificial intelligence (AI) is intensifying in the global robot market," adding, "Korea is also aligning with the robot trend due to Samsung Electronics' entry into the humanoid competition." He further stated, "Interest in the robot sector is expected to expand in the domestic robot market, highlighting the humanoid main bodies and component value chains."

P&SMECHANICS, established in 2003, is a specialized company in medical rehabilitation robots. Based on robot joint technology secured through humanoid research and development (R&D), it developed the walking rehabilitation robot Walkbot. This rehabilitation robot supports patients who have difficulty walking due to causes such as stroke to walk again through scientific gait training.

In particular, expectations of improved performance this year are also reflected. In the past month, there have been two reports on P&SMECHANICS, released by Korea Investment & Securities and Kiwoom Securities. Korea Investment & Securities forecasted that P&SMECHANICS' sales and operating profit this year would increase by 55.8% and 101.1% year-on-year to 11.1 billion KRW and 3.1 billion KRW, respectively. Kiwoom Securities also projected sales of 10 billion KRW and operating profit of 3.3 billion KRW.

Researcher Yoon Cheol-hwan from Korea Investment & Securities said, "Sales growth is expected to be significant due to the expansion of overseas sales channels," adding, "Although the cost ratio will slightly increase due to new product launches, the margin is expected to improve due to economies of scale from expanded size." He emphasized, "The global rehabilitation robot market is expected to grow at an average annual rate of 27.2% due to accelerated aging and a shortage of therapists. Through exclusive contracts with numerous overseas partners, minimum order volumes are being secured, enabling benefits from this market growth."

However, there is still a long way to go to recover the initial public offering (IPO) price. P&SMECHANICS was listed on the KOSDAQ market on July 31 last year. The IPO price was 22,000 KRW, exceeding the upper limit of the desired IPO price range (14,000 to 17,000 KRW). The current stock price is down 44.60% compared to the IPO price.