Russell, Growing Optimism for Benefits from Robot Automation

[Asia Economy Reporter Hyunseok Yoo] Expectations for Russell's earnings growth are rising. It is forecasted that the supply of related equipment will increase due to the favorable foundry market conditions.

According to the financial investment industry on the 24th, Daishin Securities predicted that Russell will record consolidated sales of 79.3 billion KRW and operating profit of 15 billion KRW this year. This represents an increase of 116.6% and 131.5%, respectively, compared to the previous year.

Russell is a semiconductor used equipment company specializing in thin film deposition equipment. Daishin Securities researcher Han Kyung-rae said, "Due to the US sanctions on Chinese semiconductor companies, demand for 8-inch foundries is surging," adding, "8-inch equipment is traded in the used market, and the shortage of used equipment supply leads to benefits for Russell."

He emphasized that the order announcement on the 18th was not the end. He said, "There was an order announcement of 6.6 billion KRW worth of equipment for KiFoundry (MagnaChip) on the 18th," and added, "Equipment orders began after SK Hynix's acquisition of KiFoundry shares." He continued, "Due to the favorable foundry market conditions, investment is accelerating compared to the previously expected schedule," and explained, "Additional orders beyond the announced contracts are ongoing."

He also stressed the importance of paying attention to the growth of Russell Robotics, a subsidiary. Russell Robotics is a company specializing in unmanned robot automation systems. He said, "It can be said that it is dominant in the domestic smart factory unmanned guided vehicle (AGV) market," and added, "Its strength lies in skillfully handling multiple global software and performing stable roles in various industries based on a large database."

Daishin Securities forecasted that Russell Robotics' sales will increase by 240% to 19.3 billion KRW this year compared to the previous year. He emphasized, "Currently, companies related to robot automation are receiving high valuations in the market," and added, "Considering Russell Robotics' expected sales of 32 billion KRW and operating profit of over 6 billion KRW next year, Russell's current market capitalization level (about 120 billion KRW) is justified by the corporate value of Russell Robotics alone."

This content was produced with the assistance of AI translation services.