[Click eStock] "Hwacheon Precision, Collaborates with Japan's Leading Robot Company Fanuc... Accelerates Industrial Market Expansion"

Hanyang Securities analyzed on the 27th that Hwacheon Precision Machinery will accelerate its penetration into the industrial robot market using CNC (Computer Numerical Control) technology.

Hwacheon Precision Machinery is a specialized metal machine tool manufacturer producing CNC-related products and machining centers. It was listed on the KOSPI market in November 1999. CNC is a core element of industrial robots and machine tool automation. The company operates three domestic sites including its headquarters in Korea, Yeonggwang plant, and Pyeongdong plant, and has overseas subsidiaries in the United States, Germany, and Singapore to target the global market. Currently, exports account for about 37.5% of its sales.

Researcher Lee Jun-seok of Hanyang Securities explained, “Looking at the sales composition by business segment, the machinery business segment, which manufactures CNC lathes and milling machines, accounts for 88.8%, while the materials business segment, which produces materials used in machine tools and robot parts, accounts for 11.2%.” In particular, the materials business segment produces metal parts necessary for robot manufacturing in a joint venture with the Japanese global robot company FANUC.

Korea FANUC, established in 1986, is a joint venture between Japan’s FANUC and Hwacheon Precision Machinery, responsible for supplying CNC systems and industrial robots domestically. Hwacheon Precision Machinery currently holds a 5.3% stake in Korea FANUC, reflecting the strategic cooperative relationship between the two companies in the past.

At that time, Japan’s FANUC needed to expand the distribution of CNC systems and industrial robots in the Korean market, while Hwacheon Precision Machinery required advanced automation technology to secure global competitiveness in the machine tool industry.

Researcher Lee stated, “It appears that Korea FANUC was born out of this mutual benefit, and currently, Korea FANUC provides various automation solutions including large industrial robots with 6-axis control and collaborative robots capable of working alongside humans.”

Hwacheon Precision Machinery’s consolidated performance last year recorded sales of 222.2 billion KRW, a 1.56% decrease from the previous year, and an operating loss of 741 million KRW, turning to a deficit. Although the proportion of the robot business in the company’s sales is relatively low at present, gradual growth is expected depending on customer expansion and changes in the business environment.

Since early this year, as cooperation between large corporations and robot companies has strengthened, the stock prices of robot-related companies have shown positive trends. Hwacheon Precision Machinery is also expected to highlight business expansion potential if its cooperative relationship with Japan’s FANUC becomes clearer.

Researcher Lee analyzed, “The parent company, Japan’s FANUC, is a global leader in robot manufacturing with a market capitalization of 43 trillion KRW as of February 2025, maintaining a worldwide position in CNC machine tools and industrial robots. Hwacheon Precision Machinery will continue developing CNC machine tools and automation solutions and contribute to raising the automation level of domestic manufacturing through cooperation with Korea FANUC.”