Hana Securities reaffirmed a buy rating and a target price of 80,000 won on Sena Technologies (KOSPI: 061090) on 13 July. The stock was trading at 45,550 won as of 10 July.
Sena Technologies reported second-quarter revenues of 75.5bn won, up 40% year on year and 72% quarter on quarter, with operating profit of 18bn won — a 128% rise from a year earlier and a near-fivefold jump from the previous quarter. The operating margin expanded sharply, from 8.8% in the first quarter to 23.9%.
Two factors drove the improvement. Sales of motorcycle-related products rose 40% year on year to 64bn won, buoyed by stronger demand from key customers including helmet maker Shoei and Harley-Davidson. A shift towards higher-margin products also lifted the gross margin from the low-to-mid 40% range into the low 50s.
Hana Securities expects the momentum to continue in the second half of the year. Because demand for Sena's products is typically strongest in spring and autumn, the brokerage believes third-quarter results are likely to hold at current levels. A large logistics warehouse the company has secured in Texas is expected to reduce shipping costs and tariff exposure, suggesting the margin improvement is structural rather than one-off.
The more intriguing potential catalyst, however, is South Korea's physical AI policy. The government has set out an ambition to rank among the world's top three in robotics and to become the global leader in physical AI — the branch of artificial intelligence that interacts with the physical world — by 2030. Its so-called Physical AI 3M Strategy envisages deploying more than 1,000 AI-powered robots per year across various industries and building mass-production lines for humanoid robots.
Hana Securities argues that mesh networking — the wireless technology in which Sena specialises — will be indispensable in robotic work environments. Without mesh networks, operators of robots in agriculture, construction, and manufacturing would need to build out private 5G infrastructure or install separate signal repeaters, at considerable cost and time. Mesh networks offer a cheaper, faster alternative.
Sena Technologies is reportedly in discussions to supply mesh networking products for industrial use to a global client in the second half of this year. Hana Securities believes a successful deal could prompt the market to re-classify the company as a physical AI play, justifying a higher earnings multiple.
The brokerage forecasts full-year 2026 revenues of 233.2bn won and operating profit of 40.3bn won.