As the possibility of Yuil Robotics, an industrial robot company, joining the SK Group increases, its stock price has soared. Investors flocked in anticipation of a similar trend to the rise in stock price of Rainbow Robotics after it was incorporated as a subsidiary of Samsung Electronics.
Yuil Robotics shares are trading around 72,000 won, up about 17% from the previous day as of the morning of the 2nd. In early trading, the stock price jumped to 79,100 won. This increase is interpreted as being spurred by Yuil Robotics signing a call option contract with SK Battery America, a 100% subsidiary of SK On.
Yuil Robotics announced a call option contract between CEO Kim Dong-hun and SK Battery America after the market closed the previous day. If SK Battery America exercises the call option, it could secure a maximum equity stake of 23% at a fully diluted price of 28,000 won per share. The fully diluted basis refers to the number of shares issued when all convertible bonds (CB) and bonds with warrants (BW) are converted into stock.
SK Battery America invested in Yuil Robotics last year through a third-party allocation of shares, holding a 13.47% stake. If the call option is fully exercised, SK Battery America will become the largest shareholder of Yuil Robotics. If the stake exceeds 30%, it could be consolidated as a subsidiary.
Founded in 2011, Yuil Robotics develops and manufactures everything from smart factory automation systems to industrial robots. Last year, it recorded sales of 35.2 billion won and an operating profit of 400 million won. Although it outperformed the performance of Rainbow Robotics, acquired by Samsung Group, and was not far behind Doosan Robotics' sales (46.8 billion won), Yuil Robotics' stock price has been relatively undervalued.
The market capitalization of Yuil Robotics based on the previous day's closing price is 708.5 billion won. This is roughly one-eighth and one-fourth of the market capitalizations of Rainbow Robotics (5.1216 trillion won) and Doosan Robotics (3.147 trillion won), respectively. Based on the price-to-book ratio (PBR; market capitalization ÷ net worth), Rainbow Robotics exceeds 20 times and Doosan Robotics exceeds 8 times, while Yuil Robotics stands at 3.55 times.
In the securities industry, there are expectations that the stock price of Yuil Robotics will be reassessed if it supplies products to SK Group. According to Park Chan-sol from SK Securities, Yuil Robotics equipment is currently being tested in the SK On secondary battery process. The market expects that the actual order size or confirmation will come in the second quarter of this year (April to June).
However, given that Yuil Robotics' stock price already soared to 82,000 won in February amid the robot stock frenzy, opinions are divided on its potential for further increases. The timing of the exercise of the call option by SK Battery America is expected to be crucial, similar to the case of Rainbow Robotics, whose stock price surged after Samsung Electronics exercised a call option. SK Battery America is allowed to exercise the call option within the next five years.