[Click eStock] "SiseonAI, Launches Full-Scale Smart APC Robot Automation Project with Hanwha and Nonghyup"

On June 4, independent research firm ValueFinder stated that for SiseonAI, its subsidiary UON Robotics is now entering the full-scale phase of automating robots at the National Agricultural Cooperative Federation (Nonghyup) Agricultural Products Processing Centers (APCs). The firm assessed that the likelihood of performance improvement is high, given the expected increase in recognized orders. In particular, ValueFinder projected that profitability would improve at a faster pace, as strategic collaboration with Hanwha Robotics and Nonghyup Information & Communications is being pursued in tandem with cost optimization efforts.

SiseonAI, established in 2010, is a company specializing in Vision AI and was listed on the KOSDAQ market in 2023. The company supplies the 'SEEU LINE' facial recognition system for airports and the 'SEEU x-RAY' carry-on baggage security solution to government and administrative agencies. For private sector clients such as Samsung SDS, it provides the persistent authentication PC screen information protection solution 'SEEU ON'.

In the first quarter of this year, consolidated sales reached 3.3 billion won, showing a 160% increase compared to the same period last year. However, the company posted an operating loss of 2.8 billion won, continuing to operate in the red. Nevertheless, the market is paying attention to the possibility of significant performance improvement if new orders begin to be reflected in the company's results in earnest.

The main growth driver is cited as its subsidiary UON Robotics. SiseonAI holds an 86.4% stake in UON Robotics, which is currently working to expand AI-based transformation and robot automation at Nonghyup APCs. The government is pursuing a policy to convert 100 out of approximately 500 APCs nationwide into smart APCs by 2027. The rapid expansion of automation demand, due to population decline and aging in rural areas, is also cited as a background for market growth.

According to ValueFinder, approximately 7 to 8 robots are deployed per APC, and the business size per site is estimated at 300 to 400 million won. Based on this, the market size is expected to reach about 300 billion won by 2027, and in the long term, the total market could reach 1.5 trillion won.

UON Robotics has established a competitive advantage by conducting PoC (Proof of Concept) processes, which involve two years of practical verification and implementation before actual delivery, at major APC sites. In April, UON Robotics also established a strategic collaboration framework for the smart APC project with Nonghyup Information & Communications and Hanwha Robotics.

It is also considered a positive factor that Hanwha Group is expanding its physical AI business area based on robot technology that handles unstructured objects. As a result, some market analysts believe that UON Robotics could secure a high market share within the smart APC sector.

In terms of profitability, the effects of cost structure improvement are gradually appearing. During the business restructuring process, the company reduced its workforce from around 135 at the beginning of this year to about 60 at present. As a result, employee salary-related expenses for the first quarter of this year decreased by 700 million won. In addition, other expenses have also continued to decrease, which is expected to have a positive impact on the bottom line going forward.

Lee Choongheon, a researcher at ValueFinder, stated, "References for public and private sector deliveries based on Vision AI technology, and UON Robotics' two years of PoC experience, are key competitive strengths," adding, "Through collaboration with Hanwha Robotics and Nonghyup Information & Communications, there is a high likelihood that the company will secure a leading position in the 1.5 trillion won smart APC market."

He continued, "The reduction in workforce during the business restructuring process led to a decrease of 700 million won in employee salary expenses in the first quarter of this year," and added, "With the expansion of recognized orders and ongoing cost efficiency efforts, the pace of profitability improvement is also expected to accelerate."

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