Unichem lands supply deals for three new Hyundai Motor Company models, swings to profit and ramps up its robotics business

[Financial News]  Unichem is moving to turn its performance around, using expanded supplies for new Hyundai Motor Company models as a springboard. As it restores profitability in its automotive seat leather business, it is also moving quickly to secure future growth drivers by acquiring a U.S. company specializing in electronic skin for robots.
On the 11th, according to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART), Unichem recorded consolidated operating profit of 651 million won in the third quarter of this year, up 34.1% from the same period a year earlier. Compared with the previous quarter, its operating results improved by about 3.6 billion won. Revenue was 28.399 billion won.
The main driver of the company's improved performance is its core automotive interior materials business. Unichem supplies seat leather for three new models Hyundai Motor Company is launching in the second half of the year. In particular, the new compact SUV recorded 15,045 orders on the first day of contracts last October, showing initial demand 38.8% higher than that for the previous generation. As production of the new models increases, this is expected to help Unichem expand its deliveries.
Alongside the recovery of its core business, its new robotics business is also taking shape. Last month, Unichem signed a definitive agreement to acquire a 100% stake in U.S. flexible electronics company Loomia Technologies, Inc. The deal is expected to close on January 4 next year.
Unichem plans to combine its existing materials-processing technology with Loomia's flexible-electronics circuit technology to target markets for electronic skin and tactile sensors for robots, as well as smart automotive interiors. At an extraordinary shareholders' meeting last month, it added related businesses to its articles of incorporation and appointed Loomia founder Madison Maxey and Monroe Kennedy III, director of Stanford University's ARM Lab in the United States, to its board.
The industry is watching for a recovery in the performance of the automotive interior materials business and whether the new robotics business can be commercialized. While supplies for new Hyundai Motor Company models are expected to support near-term results, commercialization of robotic electronic-skin technology is expected to determine the company's medium- to long-term growth prospects.
An automotive parts industry official said, “If strong initial sales of new models lead to higher production volumes, the performance outlook for seat-material suppliers could also become clearer,” adding, “For Unichem, the recovery in profitability of its existing automotive interior materials business and the pace at which materials for robots are commercialized will be key factors in assessing its future growth.” 
[email protected] Kim Gyeong-a Reporter