ROBOTIS has announced a capital increase plan worth 100 billion won for shareholders, and securities firms assessed on the 29th that this is an inevitable choice to expand production capacity (CAPA).
ROBOTIS stated that the purpose of this capital increase is to further secure production capacity for its core product, actuators, and to increase the in-house rate of parts to respond to the low-price offensive from Chinese companies.
Kim Hak-jun, a researcher at Kiwoom Securities, evaluated that it is necessary to expand facilities. He noted, "Recently, the application of mass production levels from customers in the pharmaceutical and institutional sectors, including humanoids, is increasing," adding, "Currently, more than 10 companies have transitioned to the mass production stage, and as this is expected to expand rapidly, the expansion of production capacity is essential."
Lee Ji-ho, a researcher at Meritz Securities, diagnosed that expansion is essential to maintain an annual sales growth rate of more than 15%. However, he expressed disappointment regarding the choice of a shareholder-allocation capital increase.
He remarked, "Considering ROBOTIS's increased market position, attracting strategic investors (SI) or financial investors (FI) would have been more efficient," and added, "To restore damaged investment sentiment, steady growth in actuator shipments and evidence of successful exports of new products are necessary."
ROBOTIS will promote a capital increase by allocating 1,349,528 new shares to existing shareholders, and if there are unallocated shares, it will conduct a public offering to general investors. The increase ratio is 0.1 share per existing share.
In addition to the increase in the number of shares, the expected issuance price of new shares, applying a discount rate, has been set at 74,100 won, which is lower than the current stock price, leading to a sharp drop in ROBOTIS's stock price in the after-market (After-Market, 3:40 p.m. to 8 p.m.) the previous day.
Yang Seung-yoon, a researcher at Eugene Securities, stated, "As expenses will increase during the investment execution process after ROBOTIS's capital increase, there exists a burden on stock price movement, but we expect to secure future competitiveness through bold investments."
Yang added, "ROBOTIS has expanded its product line with actuators, reducers, robotic arms, and humanoids, and plans to unveil additional small actuators related to robotic hands this year."