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| Rainbow Robotics' humanoid robot Hubo / Courtesy of Rainbow Robotics |
Rainbow Robotics' stock price quadruples this year
By Anna J. Park
Local robotics stocks are enjoying a rapid bull market, reflecting investors' expectation over further mergers and acquisitions of robotics companies by conglomerates as well as the government's deregulation moves to foster the state-of-the-art industry.
The share price of Rainbow Robotics reached its all-time high of 136,900 won ($104.90) in the early trading hours during Friday's session. It ended at 120,700 won, a 7.48 percent jump from the previous session.
The company's share price posted three consecutive winning streaks from Wednesday, logging daily increases of 12.06 percent, 29.98 percent and 7.48 percent, respectively, until Friday's closing. This week's surge has to do with Samsung Electronics' additional purchase of 913,936 common shares of the company through over-the-counter trading. With the skyrocketing upward trend, the robotics company's stock price rose by 56 percent in just three trading sessions from Wednesday to Friday.
The stock price of Rainbow Robotics has nearly quadrupled this year alone, as it ended at 32,600 won at the closing of the first trading session of the year in January. Following Samsung Electronics' acquisition of a 10.2 percent stake in the company's equity in January, the sharp rise of the stock price unfolded. With Samsung's additional purchase of the stocks this week, the global electronics giant now holds a 14.99 percent stake in Rainbow Robotics.
Other robotics stocks have also been logging strong upward trends this year, far exceeding the average increase on the tech-heavy Kosdaq index.
The stock price of Neuromeka, the manufacturer of collaborative robots, hit a daily increase limit of 30 percent jump on Friday's session. It finished at 37,700 won at closing, an all-time high since the firm's listing debut last November.
Likewise, Robostar's stock price rose by 18.67 percent during Friday's session, while T-Robotics rose by 10.84 percent, Yujin Robot soared by 6.23 percent and Hyulim Robot jumped by 4.17 percent at Friday's closing.
Experts say Friday's bull move shows markets' expectation that the growth potential of the robotics industry will remain solid, despite global financial markets' increased volatility. The government's recent moves to foster the sector also boosted their bets on robotics companies.
In addition to the industry ministry's series of deregulatory measures on cutting-edge robots announced earlier this month, the government will also come up with strategies for the robotics industry, with plans to span out detailed supports for the burgeoning sector.
"It is evident that the demand for robots will increase, according to changes of the socioeconomic landscape, such as lack of labor, the increase of payroll costs and a decline in population," said Yang Seung-yoon, senior analyst at Eugene Investment.
"The Inflation Reduction Act (IRA) of 2022 is expected to increase the demand for robotics, as modern factories are mostly equipped with automated facilities, making robotics mandatory," KB Securities analyst Ha In-hwan said. "Given that the IRA is to be applied at a broader scope of countries and industries, the demand for robotics in the U.S. will grow, offering export opportunities for Korean robotics companies."
