iM Securities projected on the 17th that ALUX will be able to intensify exports as the Donald Trump U.S. administration further regulates Chinese drones, including those from DJI. ALUX is a coding education robot and drone manufacturing corporation established in 2015.
According to Lee Sang-hun, a Research Institute analyst at iM Securities, the U.S. government is undertaking various efforts to regulate DJI, the world's largest drone manufacturer based in China. Last September, over 20 regulatory bills, including the Chinese Communist Party's drone response law prohibiting the use of DJI's new products in the U.S., passed the House.
The analyst noted, "As conflicts between the U.S. and China are expected to escalate further under the second Trump administration, regulations on Chinese drones, including those from DJI, are also anticipated to tighten."
ALUX's main product is a nano drone weighing less than 250 grams. It launched its first educational drone in 2022 and made its debut in the U.S. market in 2023. To bypass regulations prohibiting the sale of drones that use more than 10% Chinese components in the U.S., the company has been localizing parts and has internalized the Flight Controller (FC), which serves as the brain of the drone.
The analyst stated, "ALUX supplied educational drones to the U.S. Air Force in 2023 and is currently preparing to expand its market to the field of security drones, which are referred to as flying closed-circuit (CC) TVs, in collaboration with a major U.S. security solutions corporation."
The analyst mentioned, "ALUX's exports to the U.S. are expected to gain momentum this year," adding, "Sales growth is anticipated to accelerate as the years progress."
The analyst did not present any investment opinions or target prices for ALUX. However, ALUX is estimated to record sales of 80 billion won and an operating profit of 8 billion won this year, marking increases of 45.5% and 166.7%, respectively, compared to last year's sales and operating profit. Based on this, the price-to-earnings ratio (PER) is 25.2 times.