[Click eStock] "Now Robotics Accelerates Growth Drive with Overseas Market Expansion"

On September 1, Hana Securities analyzed that Now Robotics is accelerating its growth drive ahead of its overseas market expansion and the construction of its second factory.

Now Robotics, a company specializing in industrial robots and automation systems, provides total solutions across the robotics sector, including industrial robots such as Cartesian robots, SCARA robots, and articulated robots, as well as autonomous logistics robots for manufacturing processes and robot automation systems.

In particular, the company possesses its own software technology for controlling robot motion and is expanding its business into collaborative robots, humanoid robots, and AI-based industrial robots, growing into a comprehensive finished product robot solutions provider. As of the second quarter of this year, its revenue composition consisted of 60% industrial robots, 27.6% automation systems, 6.3% end-of-arm tooling (E.O.A.T), and 6% merchandise.

Han Yugun, a researcher at Hana Securities, stated, "Now Robotics appears to have several competitive advantages for expanding market penetration. The first is its full lineup that can address all areas, with a total of 29 product lines, including 23 industrial robots and 6 logistics robots." He added, "This will work as a favorable factor as the company expands its supply into various industries such as automotive, secondary batteries, cosmetics, medical devices, and home appliances."

Now Robotics has secured 434 references, including automation projects with Hyundai Mobis, Seojin Automotive, and Inzi Controls. The number of client companies surged from about 126 in 2020 to 682 at the end of last year, and it is expected to exceed 1,000 within the next three years.

He explained, "By securing software such as robot frameworks and motion control, as well as its own hardware design technology, the company can achieve high-speed and high-precision motion, which will significantly contribute to improved precision, stability, and durability." He continued, "As the company continues to increase the internalization rate of key components such as reducers, the cost ratio, which is currently in the mid-70% range, is expected to drop significantly to around 60% by 2026. It is also highly likely that the company will achieve quarterly profitability starting in the second half of 2026."

Global market expansion is also accelerating. Han noted, "Now Robotics is expected to fully enter overseas markets through strategic cooperation with global company Z. The development of medium and large-sized robot ODM products is key, with 3 out of a total of 7 models to be launched preemptively." He added, "From a mid- to long-term perspective, this will serve as a positive factor in establishing a global network and sales channels, and the company plans to expand its supply models to include autonomous logistics robots in the future."

The company is also working to expand its production capacity. Now Robotics is currently building a second factory to proactively respond to increased demand, with completion expected in February 2026. Once the expansion is complete, production capacity (CAPA) will increase fourfold from the current 30 billion won to 120 billion won. Han forecasted, "Based on securing large, high-quality clients, we expect repeated orders and a stable increase in order backlog. With the effect of the CAPA expansion, sales in 2026 are expected to reach 21.5 billion won, with a turnaround to operating profit, and in 2027, sales could reach 35 billion won with a double-digit margin fully achievable."