KB証券 said on the 4th that LG Innotek(011070) is expected to benefit from U.S. regulations on Chinese robots. Recently, the United States put Chinese robots on a national security threat list and moved to restrict imports.
However, KB証券 did not present an investment opinion or a target price.
On the 4th, Lee Chang-min of KB証券 said, "As the United States is tightening import restrictions on Chinese robots citing security concerns, substitution demand for Chinese vision sensing is expected to expand," and noted, "LG Innotek is expected to benefit from the restructuring of the North American robot supply chain."
Earlier, the Federal Communications Commission (FCC) decided, following semiconductors, to place Chinese Humanoid Robot, quadruped robot, and power inverter on the national security threat list and to stop issuing new device certifications required for sales and imports in the United States. The measure took effect upon announcement.
Import restrictions are expected to expand going forward. The FCC said it has the authority to revoke import certifications for previously authorized Chinese products if necessary.
LG Innotek has strengths in vision sensing, the "eyes" of a Humanoid Robot. LG Innotek is the exclusive supplier of vision sensing modules for Figure AI's robot Figure 03 in the United States. It is also developing the vision sensing module to be mounted on Boston Dynamics' next-generation robot Atlas. It ranks No. 1 in supplying communication substrates installed in Amazon's low-Earth-orbit satellite communications.
Lee said, "Starting in the third quarter, orders for AI substrates from global big tech companies are expected to ramp up for LG Innotek, and record-high results are expected in the fourth quarter," adding, "The 48% stock decline in July due to technical supply-demand factors will enhance investment appeal going forward."