[Edaily Reporter Shin Ha-yeon ] On the 1st, Shinhan Investment Securities stated that for KNS CO., LTD(432470), the benefits of physical AI and the transition to dark factories are materializing through order momentum, and projected that a turnaround centered on new businesses will begin in earnest after the company moves past the lithium-ion battery chasm. The firm did not provide a specific investment opinion or target price.

Choi Seung-hwan, an analyst at Shinhan Investment Securities, stated, “The benefits of physical AI and the transition to dark factories are materializing through order momentum,” adding, “Since the company confirmed a return to profitability in the first quarter with revenue of 11.3 billion won and operating profit of 1.3 billion won, it deserves attention from the perspective of a turnaround toward new businesses, moving beyond the impact of the chasm.”

Analyst Choi cited KNS CO., LTD’s proprietary CAM (a mechanical device that converts long-axis rotation into vertical motion) technology as the company’s core competitive advantage. He explained, “The company possesses top-tier CAM technology in Korea and effectively monopolizes the cylindrical battery cap assembly market,” adding, “When combined with deep learning-based AI vision, it enables full automation of the entire process, from incoming goods to packaging.” He further assessed, “Based on this unrivaled technological capability, momentum is building for various new business ventures in the fields of physical AI and dark factories.”

He also outlined specific growth drivers. Researcher Choi said, “Our joint venture (JV), Zhongrui Korea, has begun mass production of core components for T-Company’s 46mm batteries, and we expect to see an expansion in orders as humanoid robots enter the commercial market,” adding, “We have also signed contracts to supply automated production equipment to three major advanced sensor manufacturers—LiDAR, camera sensors, and radar.”

He also highlighted the growth potential of the subsidiary, Eunseong FA. “Eunseong FA is a leader in the domestic PCB and FPCB pin insertion equipment market and is expanding its supply of high-value-added equipment for the automotive, semiconductor, and data center sectors,” he explained. “Eunseong FA’s core technology is also being applied to IGBTs supplied to a leading U.S. automaker.” He added, “Through our Vietnamese subsidiary, we are outsourcing the local production of orthogonal articulated robots and AMRs for a Japanese company, P, and the cumulative supply volume surpassed 380 units in March of this year.”

He also forecast that financial performance would begin to improve starting this year. Analyst Choi stated, “Revenue in 2026 is projected to reach 59.8 billion won, a 45% increase year-over-year, and operating profit is expected to turn positive at 6.5 billion won,” adding, “The current order backlog stands at 40 billion won with a lead time of six months, and we anticipate securing approximately 20 billion won in additional orders during the third and fourth quarters.”

He continued, “Since the ‘chasm’ has passed, only high-margin orders remain, so the margin rate could exceed 10%,” and assessed, “The company’s solid financial structure, with cash and cash equivalents at around 25 billion won, is also attractive.”