RS Automation - Korea Stock Market Insights

1. RS Automation IR: What to Expect?

RS Automation will announce its company introduction, current business status, and future outlook at its IR session on September 24th. The company is expected to address the reasons behind its poor performance in 2024 and provide the basis for its projected turnaround in 2025.

2. Why Focus on RS Automation Now?

Despite declining sales and operating losses in 2024, RS Automation projects a return to profitability in 2025, driven by the growth potential of its robot motion control and energy control business segments. Positive factors include increased investment in semiconductor equipment, growth in the service robot market, and government support for renewable energy policies.

3. How Will the 2025 Turnaround be Achieved?

Robot Motion Control: Benefits from increased semiconductor equipment investment and service robot market growth.
Energy Control: Driven by renewable energy transition and government policy support.
Sales Recovery and Cost Efficiency: Projected sales of KRW 690.1 billion and operating profit of KRW 67 billion in 2025.

4. Action Plan for Investors

Check key IR details: Focus on performance improvement plans and financial soundness reinforcement measures.
Consider the macroeconomic environment: Analyze the impact of high exchange rates and interest rates.
Analyze the competitive landscape: Consider the intensifying competition in the energy control sector.
Comprehensive assessment: Make investment decisions based on a comprehensive evaluation of business competitiveness, growth potential, and risk factors.

1. What Happened? RS Automation Announces 40 Billion KRW Rights Offering

On August 29, 2025, RS Automation announced a rights offering to raise 40 billion KRW. The offering will be conducted through a rights issue to existing shareholders, with any unsubscribed shares offered to the public. The funds will be used for facility investment (8 billion KRW), operating funds (26 billion KRW), and debt repayment (6 billion KRW).

2. Why the Rights Offering? Funding for Underperformance and Future Growth

RS Automation has recently experienced a significant decline in sales in both its robot motion control and energy control sectors, leading to deteriorating profitability. This large-scale fundraising is necessary to address the current situation and secure future growth engines.

Factors Contributing to Poor Performance: Decline in sales, increase in SG&A expenses, increase in R&D expenses
Financial Status: Healthy current ratio, slight increase in debt-to-equity ratio

The funds raised through the rights offering are planned to be used for facility investment, research and development, and debt repayment. The company expects this to improve its financial structure, develop new technologies, and secure future growth drivers.

3. What Does This Mean for the Stock Price? Short-term Decline vs. Long-term Growth Potential

In the short term, concerns about share dilution are likely to put downward pressure on the stock price. However, there are also expectations that the funds secured through the rights offering could drive the company’s growth in the long term.

Short-term Impact: Potential stock price decline, risk from interest rate/exchange rate fluctuations
Long-term Impact: Expected improvements in financial structure and securing new growth engines

4. What Should Investors Do? Careful Approach and Continuous Monitoring Required

Investors should carefully review the offering price, fund utilization plan, and future performance of the company. In particular, whether the company’s performance improves after the rights offering will be a crucial factor in investment decisions.

Key Checkpoints: Offering price, fund utilization plan, performance improvement, changes in the macroeconomic environment

Tag: RS Automation

RS Automation IR Analysis: Potential Turnaround in 2025 and Investment Points