Kiwoom Securities said on the 11th that SAMHYUN is inevitably likely to show weak profitability for the time being due to rising fixed costs.
SAMHYUN swung to a loss in consolidation profit and loss in the third quarter of this year (July–September), posting consolidated third-quarter revenue of 73.6 billion won and operating profit of 2.1 billion won. Each fell 0.05% and 62.2% from a year earlier.
Shin Yoon-cheol of Kiwoom Securities said, "Labor costs reflecting the addition of research and development staff for the new Robotics business have weighed on the company," and "recent acquisitions of Robotics control technology-based firms such as Case Lab and EV Solution have also been a burden."
Shin judged that weak profitability will continue for the time being. The 48.5 billion won raised through convertible bonds (CB) in Oct. this year could be used for additional Robotics-related mergers and acquisitions (M&A) and hiring, leaving labor cost pressures in place. In addition, depreciation for Changwon Plant 3, now under construction, and the Changwon Plant 3 whose acquisition was disclosed last month is scheduled to begin next year.
Shin said, "For the weak profitability to be interpreted as 'growing pains' arising from preemptive investment for growth, it ultimately needs to be followed by the achievement of confirmed mass-production orders," and added, "SAMHYUN has been given the task of justifying the recent sharp rise in its share price, which has already priced in expectations for supplies to North American humanoids."
He went on, "Although cash capacity is estimated to be available thanks to last year's initial public offering (IPO) and this year's CB issuance, considering current profit and the uncertainty of humanoid mass-production orders, the factory expansion and M&A promotion schedule to date tends to be a step ahead," noting, "There appears to be a need to manage future profit-and-loss risks."