Hana Securities on the 25th gave mixed assessments of SNT Motiv's acquisition of equity in SNT Robotics and SMEC. It maintained a "buy (BUY)" rating and raised the target price to 40,000 won. The previous trading day's closing price of SNT Motiv was 33,650 won.
Earlier, SNT Motiv disclosed it would acquire 100% equity in SNT Robotics for 30 billion won and 13.6% equity in SMEC for 46 billion won.
Song Seon-jae, an analyst at Hana Securities, said, "The acquisition of equity in SNT Robotics is positive in terms of entering a future growth industry and synergy with SNT Motiv's motor and machinery technology," but noted that "the acquisition of equity in SMEC is negative in that SNT Motiv will directly participate in the competition to acquire equity in SMEC."
In particular, the firm viewed positively that the acquisition of SNT Robotics enables entry into the new business of robots. Song said, "SNT Robotics is developing quadruped robots for defense and firefighting," adding, "Synergies are expected with SNT Motiv, which has accumulated automotive motor, electronics, and mechanical technologies for decades." Song added, "It will also be able to secure competitiveness in the development of actuators and related parts for robots."
However, it pointed to uncertainties regarding the acquisition of equity in SMEC. Song explained, "Although SNT Motiv is buying at a higher price than SNT Holdings' purchase amount, this is understandable considering the premium for acquiring 13.6% equity in one block and the share price rise due to the management control dispute," but added, "Given SMEC's equity structure—SNT Group's equity (21.2%) and the current management's equity (17.7%)—there is a possibility it will move to additional purchases to secure management control."
Song added, "If additional equity acquisitions proceed, there will be short-term uncertainties regarding the share price trend and the acquisition amount," diagnosing that "business synergies are likely to materialize in earnest only after management control is secured."