Korea Stock Market Insights

Tag: Alux

Alux (475580) Investment Analysis: Opportunity or Risk from Convertible Bond Acquisition?
Daishin-Compa-Pathway Invests in Alux! What Does This Mean?

Drone and AI edutech company Alux (475580) has secured convertible bond (CB) investment from Daishin-Compa-Pathway New Technology Investment Association. Is this a positive signal for Alux’s growth potential? Or are there hidden risks? This article analyzes the implications of this investment and Alux’s future prospects, highlighting key points for investors.
1. What Happened?

Daishin-Compa-Pathway New Technology Investment Association No. 1 acquired Alux’s convertible bonds (CB), securing a 5.96% stake. They acquired 862,812 shares through the CB acquisition on September 16, 2025, and stated their investment purpose as ‘simple investment’.

2. Why is it Important?

This investment can be interpreted as a positive external evaluation of Alux’s technology and growth potential. Coupled with the growth of the drone and AI edutech markets, it can raise expectations for Alux’s future value. However, Alux is currently experiencing declining sales and operating losses, so managing financial risks is a key challenge.

3. What’s Next?
- Positive Aspects: Strengthened financial stability through investment, accelerated business expansion and technology development, and increased market confidence are expected.
- Negative/Potential Aspects: The possibility of equity dilution due to CB conversion, continued short-term financial burden, and uncertainty about the investment association’s future course of action should be considered.
4. What Should Investors Do?

Investors should carefully analyze the growth potential and financial soundness of Alux’s drone, robot, and educational service businesses. It is especially important to continuously monitor profitability improvement, new technology commercialization and market expansion strategies, and the possibility of changes in the investment association’s investment objectives. This report is for reference in making investment decisions, and the final investment decision should be made at the investor’s own discretion.
Frequently Asked Questions (FAQ)

How will this CB investment affect Alux’s stock price?

In the short term, it is likely to have a positive impact. Investment attraction can increase confidence in the company and raise expectations for growth potential. However, the long-term stock price trend will depend on whether Alux improves its performance.

What is the outlook for Alux’s drone business?

There are many positive factors, such as in-house core component development, increasing exports to North America, and strengthened regulations on Chinese drones in the US. However, continuous observation is necessary due to risks such as increased competition and market volatility.

Is Alux’s financial status sound?

As of the first half of 2025, Alux recorded declining sales and operating losses, raising concerns about its financial soundness. Improving profitability is an urgent task.
09/23/2025
Alux Secures Investment from Timefolio: Will Drone & AI EdTech Take Off?
Alux (475580), a company specializing in drones and AI edtech, has secured an investment in the form of convertible bonds (CBs) from Timefolio Asset Management. This investment demonstrates institutional investors’ confidence in Alux’s growth potential and raises expectations for its future stock performance. However, as there are potential risks associated with issuing convertible bonds, investors should carefully weigh the pros and cons. This article analyzes the background and implications of Timefolio’s CB investment in Alux, as well as key factors for investors to consider.
Why Did Timefolio Invest in Alux?

Timefolio Asset Management announced on September 18th that it has acquired a 9.72% stake in Alux. This was achieved through the acquisition of convertible bonds, which could lead to a higher stake in the future if converted into shares. Timefolio is believed to have highly valued Alux’s growth in the drone sector and the potential of the AI edtech market. In particular, the change in the competitive landscape of the global nano-drone market due to the discontinuation of DJI Tello sales could present an opportunity for Alux. Furthermore, Timefolio seems to view Alux’s growth strategy, including its investment in Mobility One and transformation into a platform company, positively.

What Impact Will This Investment Have on Alux?
- Positive Impacts:
  Increased attention from institutional investors and secured investment funds
  Potential upward momentum in stock price
  Enhanced credibility of growth strategy
- Negative Impacts:
  Potential stock dilution from convertible bonds
  Increased short-term stock price volatility
  Uncertainty about profitability improvement
This investment provides Alux with an opportunity for short-term funding and strengthening growth momentum. However, investors should consider the risks associated with issuing convertible bonds, such as the possibility of stock dilution and the current operating loss.

What Should Investors Focus On?
- CB conversion conditions (conversion price, conversion period, etc.)
- Alux’s earnings improvement trend
- Competitive landscape of the drone and AI edtech market
- Macroeconomic and overall market volatility
Investors should make investment decisions considering the above factors comprehensively. In particular, close attention should be paid to Alux’s future earnings improvement and market conditions.
FAQ

Why is Timefolio’s investment in Alux significant?
Investment from a reputable institutional investor like Timefolio is a strong signal of market confidence in Alux’s growth potential. It can not only secure short-term funding but also contribute to increasing the company’s value.
What are the advantages of investing in convertible bonds (CBs)?
From the company’s perspective, it allows for immediate fundraising. For investors, it provides an option to profit from stock price increases.
What are the disadvantages of investing in convertible bonds (CBs)?
If the convertible bonds are converted into shares, the value of existing shareholders’ equity can be diluted. Also, until conversion, it’s difficult to expect additional returns beyond the bond interest rate.
What are the key considerations when investing in Alux?
It is crucial to consider the CB conversion conditions, Alux’s performance, the drone and AI edtech market conditions, and macroeconomic volatility comprehensively.
09/17/2025
Alux Secures $7.3M Drone Supply Contract: Investment Opportunity?
Drone specialist Alux has announced a significant supply contract with Robolink in the US! Could this deal signal substantial growth potential for Alux? This article delves into the details of the $7.3 million contract, its potential market impact, and the key takeaways for investors.
Alux Inks $7.3M Drone Supply Deal

On September 5, 2025, Alux announced a $7.3 million drone supply contract with US-based Robolink. This represents 25.32% of Alux’s recent annual revenue and will run for two years, from September 8, 2025, to September 7, 2027.

Contract Implications and Market Impact

This contract is expected to provide positive momentum for Alux. It secures stable revenue for two years and establishes a foundation for enhanced global competitiveness through entry into the US market. Alux’s proprietary FC technology, which offers a cost advantage, and its CES Innovation Award win are key testaments to its technological prowess. However, the operating loss reported in the first half of 2025 highlights the ongoing challenge of improving profitability.

Key Considerations for Investors
- Profitability Improvement: Investors should monitor not just revenue growth but also improvements in profitability metrics like operating margin and gross profit margin.
- SG&A Expense Management: Continued monitoring of increasing SG&A expenses, including R&D, salaries, and stock compensation costs, is crucial.
- US Market Competition: Alux’s strategies for navigating increasing competition and market changes, such as the DJI Tello discontinuation, should be observed.
- Exchange Rate Volatility: The potential impact of fluctuations in the USD/KRW exchange rate on the contract value should be considered.
Conclusion: Growth Potential and the Path to Profitability

This contract is a positive sign for Alux’s growth potential. However, achieving true increases in company value hinges on addressing the challenge of profitability. Investors should carefully analyze the key indicators mentioned above and make informed investment decisions.
Frequently Asked Questions

Will this contract positively impact Alux’s stock price?
In the short term, a positive impact is likely. However, the long-term stock performance will depend on improvements in profitability.
What are Alux’s main business areas?
Alux is engaged in the manufacturing of robots and drones, as well as educational services. The growth of its drone business, particularly in exports, is noteworthy.
What are the key risks to consider when investing in Alux?
Investors should consider factors such as declining profitability, intensifying competition, and exchange rate volatility. Also, this analysis is not investment advice, and investment decisions are the sole responsibility of the investor.
09/04/2025
Alux Acquires Vietnamese Electronics Manufacturer: A Diversification Success Story?
Alux Bets on Vietnamese Acquisition for Turnaround

Facing recent financial headwinds, Alux has acquired Vietnamese electronics manufacturer ER VINA. This ₩7.5 billion investment is a pivotal decision that could reshape the company’s future. Can Alux successfully diversify and secure new growth engines through this acquisition? This article delves into the rationale behind the acquisition, its potential benefits and risks, and crucial information for investors.
1. Why Did Alux Acquire a Vietnamese Company?

Alux, primarily focused on drones and education, has been grappling with declining sales and losses. To overcome these challenges and secure future growth, Alux acquired ER VINA, a Vietnamese electronics manufacturer. This move aims to diversify their business portfolio, tap into the Vietnamese market, and establish a new production base.

2. What Does Alux Stand to Gain?

Alux anticipates several benefits from the ER VINA acquisition:
- Diversification: Offsetting the struggles of existing business segments and building a more stable revenue stream.
- Production Base: Leveraging Vietnamese manufacturing to enhance cost competitiveness and establish a foothold for global expansion.
- Synergies: Integrating ER VINA’s electronics expertise into their drone operations for improved component sourcing and cost reduction.
3. What Should Investors Consider?

Despite the potential upsides, investors should consider the following risks:
- Investment Amidst Financial Difficulties: Making a substantial investment during a period of financial strain poses a significant risk.
- Integration Challenges: Unforeseen difficulties can arise during the integration of a new business segment.
- ER VINA’s Performance Uncertainty: ER VINA’s performance may not meet Alux’s expectations.
4. Action Plan for Investors

If considering an investment in Alux, carefully assess the following:
- ER VINA’s financials and business plan
- Alux’s short-term recovery potential
- Post-acquisition cash flow and financial management
- Potential synergies with existing businesses
- Market reaction and stock price predictions
Making informed investment decisions based on this information is crucial.
What is ER VINA, the company Alux acquired?

ER VINA is a Vietnamese electronics component manufacturer.

What was the acquisition price?

₩7.5 billion.

What is the purpose of this acquisition?

To diversify Alux’s business and secure new growth engines.

What are the key risks for investors?

Investors should consider Alux’s current financial difficulties, integration challenges, and the uncertainty surrounding ER VINA’s performance.
08/28/2025
Alux (475580) Q2 2025 Earnings Analysis: Surprising Revenue Growth, but Widening Losses

Alux, poised to take off with drones and AI edtech, reveals its Q2 2025 performance.

On August 14, 2025, Alux released its second-quarter earnings. While revenue surpassed expectations, the widening net loss has drawn considerable attention from investors. This article provides an in-depth analysis of Alux’s Q2 performance and offers insights into future investment strategies.

1. Alux Q2 2025 Earnings Analysis: Surprising Revenue Growth, Widening Losses

Alux reported KRW 12.7 billion in revenue for Q2 2025, significantly exceeding the expected KRW 0 billion. However, operating and net losses widened to KRW -3.8 billion and KRW -3.6 billion, respectively, compared to the previous quarter.

2. Reasons for Underperformance: Increased SG&A, R&D Expenses, and New Investments

The widening losses are primarily attributed to increased selling, general, and administrative (SG&A) expenses, research and development (R&D) investments, and new business ventures. While these investments are strategically positioned for long-term growth, the short-term impact on profitability raises concerns for investors.

3. Alux’s Competitive Advantages: Drones, AI EdTech, and Improved Financial Health

Alux maintains a technological edge through in-house FC development and has successfully transitioned to a North America-focused drone export business model. Positive factors include the potential for growth in the AI edtech market, anticipated benefits from government policy support, and improved financial health.

4. Investment Strategy: Wait-and-See Approach, Monitoring for Performance Improvement

While Alux holds long-term growth potential, the Q2 underperformance is expected to put downward pressure on the stock price in the short term. A cautious wait-and-see approach is recommended, carefully observing further earnings releases, cost control measures, and profitability improvement efforts. Closely monitor the performance of key business areas, such as the expansion of the drone business in overseas markets and market share growth in the AI edtech sector.

Frequently Asked Questions

What was Alux’s revenue for Q2 2025?

Alux reported KRW 12.7 billion in revenue for Q2 2025, significantly exceeding the expected KRW 0 billion.

Did Alux report a profit or a loss for Q2 2025?

Alux reported an operating loss of KRW -3.8 billion and a net loss of KRW -3.6 billion for Q2 2025.

What are Alux’s main business areas?

Alux operates a business that combines drone and robot manufacturing with educational content, platforms, and services. They possess a technological advantage through in-house FC development and focus on drone exports to North America. They are also actively expanding into the AI edtech market.

08/20/2025