[Click eStock] "Robotis, Excessive Stock Price Drop Due to Physical Division"

Hana Securities stated on the 24th that the stock price decline following the decision to spin off the autonomous driving robot business division, tentatively named 'Roboyits,' on June 1st is excessive.

On the same day, Choi Jae-ho, a researcher at Hana Securities, said, "This is a phase where the physical artificial intelligence (AI) sector is being re-evaluated due to profit growth through selection and concentration, expansion of product supply based on global competitiveness, and LG Electronics' robotics business plan announcement. The current excessive stock price decline is rather a buying opportunity."

Robotics' investment point lies in its actuator manufacturing technology, which accounts for the majority of its sales and is at a global top-tier level. An actuator is a component composed of a motor, reducer, controller, and communication module, used in robot joints and mobility devices. As of last year, actuators accounted for 98.5% of RobotiZ's sales.

Through the spin-off, RobotiZ will separate the division that incurs significant research and development (R&D) costs related to autonomous driving. Researcher Choi emphasized, "This allows us to focus on business sectors such as actuators to secure a leading position in the physical AI market. Additionally, funds previously invested in the autonomous driving robot business will be concentrated on physical AI."

The newly established corporation, Roboyits, has no plans to go public within the next five years and will remain private. Since RobotiZ will hold 100% of Roboyits' shares through the spin-off, assuming Roboyits remains private, there is expected to be no change in corporate value.

RobotiZ has already secured global references such as Tesla and Google. Researcher Choi said, "LG Electronics, the second-largest shareholder, has also started developing humanoid robots. The business cooperation relationship is rather favorable. Especially from May this year, we plan to supply initial quantities not only of actuators but also of the new collaborative robot, Open Manipulator Y, which will further boost performance."