Foreigners Share 'Big Smiles' with Investment in Rainbow Robotics

Foreigners Net Buy 51.7 Billion KRW in Last Month... Valuation Return 29.4%
Individuals Net Sell 66.4 Billion KRW... Price Rises 20% After Selling
Rainbow Robotics Growth Expected with Samsung Support

This year, as Rainbow Robotics' stock price has surged significantly, foreign and domestic institutional investors are smiling. With Samsung Electronics becoming the largest shareholder of Rainbow Robotics and expected to actively develop humanoid robots, expectations for further stock price increases are growing.

According to the financial investment industry on the 6th, over the past month from the 3rd of last month to the 3rd of this month, foreigners and institutions purchased Rainbow Robotics shares worth 51.7 billion KRW and 13.6 billion KRW, respectively. The foreign ownership ratio increased by 1.75 percentage points from 4.77% to 6.52% in just one month. The average purchase price per share was 180,129 KRW, and the evaluation yield based on the closing price on the 3rd reached 29.4%. Among the 22 KOSDAQ stocks that foreigners net bought over 10 billion KRW in the past month, this is the highest return.

Institutions accumulated shares at an average price of 179,307 KRW per share. Institutions, which had been reducing their holdings until the 23rd of last month, switched to net buying from the 24th. As a result, they recorded an evaluation yield of 29.9%.

While foreigners and institutions were accumulating Rainbow Robotics shares, individual investors were cashing out. They recorded net sales of 66.4 billion KRW over the past month. The average selling price per share was 193,768 KRW, about 20% cheaper than the current price of 233,000 KRW. It appears they hurried to liquidate their shares as the stock price surged this month.

On the 31st of last month, Rainbow Robotics announced that its largest shareholder had changed to Samsung Electronics. Samsung Electronics' stake increased from the previous 14.7% to 35.0%. Samsung Electronics exercised a call option to acquire 3,935,814 shares of Rainbow Robotics for 267.5 billion KRW. Even after exercising this call option, Samsung Electronics can exercise call options on about 4.58 million more shares. Samsung Electronics can increase its ownership ratio up to 58.6%.

Jiho Lee, a researcher at Meritz Securities, explained, "Samsung Electronics will expand its stake in Rainbow Robotics while establishing a Future Robot Promotion Team. They will combine Samsung Electronics' artificial intelligence (AI) and software technologies with Rainbow Robotics' robot hardware technology to develop humanoid robots." He added, "Junho Oh, the Chief Technology Officer (CTO) who was previously the largest shareholder of Rainbow Robotics, is expected to serve as the head of the Future Robot Promotion Team and as an advisor to Samsung Electronics."

As society enters an aging phase, the importance of factory automation and robot technology is increasing. Rainbow Robotics, which developed Korea's first bipedal walking robot 'Hubo,' now has greater potential to grow in the collaborative robot and autonomous mobile robot sectors with Samsung Electronics' support. Rainbow Robotics is expected to supply collaborative robots to Samsung Electronics and its affiliates. They may also enter overseas markets by leveraging Samsung Electronics' global sales infrastructure.

Chansol Park, a researcher at SK Securities, analyzed, "It is necessary to view the robotics industry positively. There is a high possibility of additional investments in the robotics industry by domestic large manufacturing companies."