"Overhang Pressure Eased After Listing… Synergies Expected Through Aggressive M&A"
On June 1, Bookook Securities commented on ALUX (475580), stating that the company is the only domestic drone manufacturer that has internalized key components, and that its exports are set to accelerate—leading to simultaneous improvements in both revenue and profit margins.
According to Bookook Securities, ALUX has completed in-house development of both software (SW) and hardware (HW), positioning itself as a specialized drone company. Having initially entered the market with educational drones, the company is currently focused on small-sized drone models.
ALUX possesses a strong advantage in weight reduction, which is critical in the small drone segment, and has secured technological competitiveness in key areas such as flight control (FC), airframe design, wireless communication, and sensor fusion. This allows for customization by client and scalability in product lines. In terms of small drones, ALUX is considered to have technology on par with DJI, the world’s top drone maker.
Analyst Kim Seong-hwan of Bookook Securities stated,
“The company aims to increase its export share to 40% this year, with a focus on expanding into the U.S. market. Its annual production capacity has been scaled up to 500,000 units, which translates to approximately KRW 50 billion in revenue. Having internalized over 90% of key components—centered around proprietary flight control (FC) technology—ALUX plans to export not only completed drones but also core components such as airframes.”
He added,
“Export-oriented drones boast an operating profit margin of around 20%, which is roughly twice that of the company’s existing main business divisions, and will significantly boost overall profitability.”
Kim also pointed out,
“Most Chinese drones exported to the U.S. are used for industrial applications such as fertilizer and pesticide spraying, which raises concerns over geographic and topographic data leakage. With the U.S. House of Representatives passing a bill last year to counter Chinese drones—and considering DJI’s low interoperability and closed ecosystem—ALUX stands to benefit from its broad coverage of both drone airframes and core components.”
Kim projected ALUX’s 2024 revenue to reach KRW 63.2 billion, a 14.8% increase year-on-year, and operating profit to surge by 111.3% to KRW 6.4 billion.
He continued,
“It’s difficult to precisely quantify the global drone market, but considering DJI’s estimated annual revenue of around KRW 5 trillion, the current market penetration remains low. This implies substantial room for growth, and ALUX—benefiting from rising demand and component internalization—is expected to see parallel growth in both revenue and profit.”
Lastly, Kim commented,
“A significant portion of the overhang pressure has already been resolved through post-listing stock adjustments. As the company is reportedly in talks with a domestic defense contractor, now is a favorable time to enter the market for affordable defense drones. ALUX is likely to maximize synergies in its drone division through aggressive mergers and acquisitions (M&A) using proceeds from its IPO.”
"Overhang Pressure Eased After Listing… Synergies Expected Through Aggressive M&A"
On June 1, Bookook Securities commented on ALUX (475580), stating that the company is the only domestic drone manufacturer that has internalized key components, and that its exports are set to accelerate—leading to simultaneous improvements in both revenue and profit margins.
According to Bookook Securities, ALUX has completed in-house development of both software (SW) and hardware (HW), positioning itself as a specialized drone company. Having initially entered the market with educational drones, the company is currently focused on small-sized drone models.
ALUX possesses a strong advantage in weight reduction, which is critical in the small drone segment, and has secured technological competitiveness in key areas such as flight control (FC), airframe design, wireless communication, and sensor fusion. This allows for customization by client and scalability in product lines. In terms of small drones, ALUX is considered to have technology on par with DJI, the world’s top drone maker.
Analyst Kim Seong-hwan of Bookook Securities stated,
“The company aims to increase its export share to 40% this year, with a focus on expanding into the U.S. market. Its annual production capacity has been scaled up to 500,000 units, which translates to approximately KRW 50 billion in revenue. Having internalized over 90% of key components—centered around proprietary flight control (FC) technology—ALUX plans to export not only completed drones but also core components such as airframes.”
He added,
“Export-oriented drones boast an operating profit margin of around 20%, which is roughly twice that of the company’s existing main business divisions, and will significantly boost overall profitability.”
Kim also pointed out,
“Most Chinese drones exported to the U.S. are used for industrial applications such as fertilizer and pesticide spraying, which raises concerns over geographic and topographic data leakage. With the U.S. House of Representatives passing a bill last year to counter Chinese drones—and considering DJI’s low interoperability and closed ecosystem—ALUX stands to benefit from its broad coverage of both drone airframes and core components.”
Kim projected ALUX’s 2024 revenue to reach KRW 63.2 billion, a 14.8% increase year-on-year, and operating profit to surge by 111.3% to KRW 6.4 billion.
He continued,
“It’s difficult to precisely quantify the global drone market, but considering DJI’s estimated annual revenue of around KRW 5 trillion, the current market penetration remains low. This implies substantial room for growth, and ALUX—benefiting from rising demand and component internalization—is expected to see parallel growth in both revenue and profit.”
Lastly, Kim commented,
“A significant portion of the overhang pressure has already been resolved through post-listing stock adjustments. As the company is reportedly in talks with a domestic defense contractor, now is a favorable time to enter the market for affordable defense drones. ALUX is likely to maximize synergies in its drone division through aggressive mergers and acquisitions (M&A) using proceeds from its IPO.”