Robotics trading bullish, fueling anticipation

Tech

Robotics trading bullish, fueling anticipation

Published: 11 Sep. 2023, 14:22 Updated: 11 Sep. 2023, 18:10

SHIN HA-NEE
shin.hanee@joongang.co.kr

Humanoid robot Hubo, developed by the KAIST research team, is displayed at the Shinsegae Department Store in Daejeon in Sept., 2022. The KAIST research team founded Rainbow Robotics, a Kosdaq-based robotics company. [YONHAP]

Investors are flocking to robotics stocks as expectations for the fast-emerging industry continue to grow.

The upcoming initial public offering (IPO) of Doosan Robotics, which is expected to be worth more than 1 trillion won ($750 million) in market cap, is further fueling the anticipation.

Rainbow Robotics' share price peaked at a record high of 235,000 won in mid-trading Monday, before closing at 212,500 won, up 0.24 percent from the previous trading day.

While the buying spree for Rainbow Robotics died down toward market closure on Monday, the robotics company's share price has been on a steep climb as of late. Its stock price more than doubled in two months, from 92,100 won.

Samsung Electronics secured a 14.99 percent stake in Rainbow Robotics in March. Founded in 2011, the Daejeon-based robotics developer specializes in multi-legged robots, and is best known for its humanoid robot Hubo.

RS Automation, a robotics developer, rose to its year-high of 21,800 won on Monday morning, and closed at 19,820 won, up 8.01 percent from the previous trading day.

Doosan, the holdings company of Doosan Group subsidiaries, hit the ceiling on Kospi, as its share price spiked 29.97 percent to 151,800 won in mid-trading. It closed at 149,100 won, up 27.65 percent.

Doosan’s robotics subsidiary, Doosan Robotics, aims to go public on the main Kospi bourse in October.

Doosan Robotics, Korea’s largest collaborative robot supplier, is set to open a subscription for its IPO shares on Sept. 21. A total of 16.2 million shares of Doosan Robotics will be open for subscription, with a price band set between 21,000 won and 26,000 won. The company expects to raise between 340.2 to 421.2 billion won.

The recent buying spree for robotics-related stocks is partially due to expanding investments in the sector from major conglomerates, including Samsung and Hanwha, as well as increased support from the government to foster the industry.

Samsung Electronics recently said that it is considering deploying AI-powered humanoid robots in semiconductor manufacturing. Hanwha is also planning to set up a robotics subsidiary, Hanwha Robotics.

"The growing interest in the robotics industry is not going to be a fleeting trend for certain thematic stocks," said Yang Seung-yoon, an analyst at Eugene Investment & Securities, in a report released in July, adding that "the worldwide structural shift that is demonstrated through global phenomena such as a shrinking labor force and rising labor costs will be a mid- to long-term growth driver for the robotics industry."

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]