Omniscient Investment Point - Chapter 286



Only Krnovel

286 The Future of Smart Farms – 2

(1)

Regardless of Lee Jeong-su and Woo Gwang-ho’s intentions, I faithfully answered their questions.

As a result, I received a response to the content that was uploaded on Monday via ‘Talk’ from Lee Jeong-su.

– As expected, the head of the household has considerable knowledge of agriculture.

└ CEO Jang Su-myeong is the son of a farmer.

└ I wasn’t born the son of a farmer, but my father became a farmer.

– Mr. Jang, what do you think the future of smart farms will be?

└ Of course it would be good.

└ What’s the fuss? Who doesn’t know what’s good? Let’s look at the omitted words. The future of Korean smart farms.

└ ㅇㅇ These days, Hyung Soo-myeong doesn’t mention Dream Farm anymore, so I can’t figure it out.

└ There is a reason for this. JTS’s Dream Farm stake exceeds 5%. If you openly recommend it, it will be considered insider trading.

N But I wish they had provided at least some after-sales service… … .

‘AS… … .’

I knew very well why he said that.

Dream Farm is clearly a theme and performance stock that has gone up to more than tenbaggers, but individuals who bought it at the peak would be suffering losses now.

This is because Dream Farm sold most of its physical assets and converted to a smart farm.

Of course, it also achieved some notable results.

First of all, the AI-enhanced smart farm had an advantage over domestic and foreign smart farm companies, and young farmers who actually used it expressed ‘very satisfaction.’

Yet the stock price did not budge.

‘PER and EPS are still overvalued.’

That too, very much.

It was all a result of selling real assets, and there was a lot more to show to make up for it.

I felt like I couldn’t just sit still, so I called Kwon Ji-young.

“Well, if you have something to say.”

“Dream Farm, you know. There hasn’t been any activity there lately.”

“Aha, you’re reacting to public opinion again.”

“Huh? What does that mean?”

“I also watched the Wetube video that came up today. It was seriously hot. The number of views already exceeded 300,000, right?”

“Really? That’s so fast.”

“Beyond being fast, it might just become the most viewed channel for stock farmers.”

That could have been it.

These days, I rarely appear on YouTube, so a single thumbnail was enough to grab the attention of tens of millions of stock investors.

“Enough with Samcheonpo. Focus on Dream Farm.”

“I was going to tell you this. We plan to expand our AI solutions soon.”

“In what way?”

“It is said that it is based on images as well as numbers and data, but wouldn’t it be better for you to go and hear the technical explanation in person rather than me?”

“That sounds better. Alright. Now that we’re on the subject, let’s see if it’s possible today.”

“Wow. Anyway, I said you’re an impromptu person.”

“Sorry. As I get older, I find that it’s best to do things right away when they come to mind.”

“What, you always speak as if it never happened.”

The relationship between Kwon Ji-young and me is deep and old.

As it turned out, he knew me too well.

This is where I think we should stop talking nonsense.

“Yes, I’ll look into it right away.”

And a little while later, I was sitting across from the head of Dream Farm.

(2)

“nice to see you.”

The name of the young representative greeting me is Jeong Seung-ho, and he has not been in this position for very long.

The expression was mysterious.

It was as if he was saying in his first greeting, ‘I’m sorry, but it’s only now that I’ve met you.’

“Nice to meet you.”

So I also said with my expression.

If you have something to say, say it now.

After a while, I opened the gate first.

“I heard about image-based AI solutions from our director, Kwon. But I think it would be better to consult an expert’s explanation for the technical part.”

Jeong Seung-ho nodded.

“wait a minute.”

He immediately picks up the remote control on the table and presses a button.

Jiiing.

Even though this was the CEO’s office, it was set up so that presentations could be made.

Because the screen came down in response to the button.

It also appears to be directly connected to the laptop.

When Jeong Seung-ho played the video, I saw it right away.

And the next content is the image-based AI solution that I mentioned earlier.

In fact, there was no need to come here to hear an audiovisual explanation.

Knowing that, he paused at a certain part and asked,

“Do you see that?”

“I can see it.”

In the still screen, someone was using a laptop to control a smart farm.

Jeong Seung-ho played it again there, and as the screen continued, the inside of a smart farm factory came into view.

“It’s lettuce. But isn’t each one a bit different in size?”

“Okay. What’s wrong?”

“No. It’s artificial.”

“Does that mean you raised him differently on purpose?”

“Yes.”

Here the conversation stopped again and the screen played again.

This time we returned to the laptop from before, and furthermore the picture within the screen was enlarged.

“As you can see here, you can do that with just one touch of the image. So some lettuces can grow a little bigger, and some can grow a little smaller. If you just hold them in the beginning, they will grow well on their own.”

It was honestly surprising how advances in artificial intelligence were taking agriculture down a new path.

“It’s not just about size. By using highland farming methods, you can make the lettuce feel the daily temperature difference. Then, the texture becomes slightly crunchy. Conversely, by increasing the amount of sunlight, you can grow it with a soft texture.”

“That’s great.”

“The taste is the same. You can slightly increase the sweetness by adjusting the water content, or you can add a little bitterness.”

Jeong Seung-ho slowly began to explain something as if he was crazy.

He didn’t seem to be encouraged by my compliments.

Should I just say that I feel intoxicated by the work I created?

There, I asked a question.

“How much does it cost?”

“The initial cost of the facility is high. This is because quite a few cameras are involved.”

“So, how much does it cost?”

“The facility cost for 100 pyeong is 500 million won.”

For a moment, I almost swore.

In Korea, relatively young people use smart farms.

Do you know how much 500 million is to them?

‘Furthermore, the facility cost alone is 500 million.’

Since you can’t install it at home, you have to buy land somewhere.

Even though it is a container type, there will be a limit to how high it can be built due to vertical expansion regulations in Korea.

“Is this by any chance for Gangnam farmers?”

I slyly criticized the farmer who doesn’t even live in Gangnam.

Then, a bitter smile appeared on Jeong Seung-ho’s face.

“If you can achieve economies of scale, your costs can come down.”

“So, how do you achieve economies of scale?”

“I’m thinking not only domestically but also overseas.”

“The Middle East, no way?”

“Yes, that’s right.”

If you look at smart farm companies these days, they are all targeting the Middle East.

It seemed as if they thought that they would be fed unconditionally in the harsh environment of the desert.

However, when we actually tried it, many conditions did not meet, and it often ended in failure.

I thought it might be the same this time, so I revisited the points I had to think about.

“The price burden will be significant in the Middle East as well?”

“Of course. Even the water is naturally warm, so we have to incorporate a cooling method.”

“And yet you see a high chance of success?”

“It’s about taking the lead in future industries. We have to do it unconditionally.”

Once again, Jeong Seung-ho’s madness was on display, and a kind of decadence was even felt.

But, because it was so far removed from reality, I thought I should wrap it up soon.

“The conclusion is that domestic introduction is nearly impossible, and we will try to penetrate the Middle East as much as possible?”

“Yes, that’s right.”

“I’m sorry. If I were you, I don’t think I would invest any more in a company like that.”

“… … .”

It was unpleasant, but he gave me a look that seemed to understand.

“If you think so too, Mr. Jang, it seems like it will take time.”

I think so too? So it takes time?

I understood what you meant right away.

As it turns out, I’ve become known as someone who invests in dreams.

That is understandable, as companies in the bio, eco-friendly, AI, and Korean luxury sectors require investments that incur initial losses.

Since I said that I couldn’t invest, Jeong Seung-ho had no choice but to say something like that.

‘I’m sorry. I can’t help it.’

If only there were numbers engraved in my right eye, it would be different, but at this stage, the economic feasibility seems clearly lacking.

“Okay, let’s get up and try.”

“Yes, yes, have a nice day.”

It would have been regrettable, but Jeong Seung-ho saw me off with a smile.

(3)

After getting in the car, I asked Kwon Ji-young and Kwak Hyun-woo, who were sitting with me.

“What do you two think?”

“It’s the same as the representative.”

“Yes, so I didn’t say a word and just listened.”

“I see.”

It was a reaction that seemed natural, but for some reason I felt regretful.

Maybe I hoped they would oppose my decision.

Why did I feel this way?

I came home and thought about it carefully.

‘Yes, the answer was in what Jeong Seung-ho said.’

People like me are reluctant to invest.

This meant that there were limits to the industries that could start in South Korea at a planned deficit.

‘That doesn’t mean you can do charity work.’

From then on, I studied whatever I could get my hands on.

Not only did we study smart farms, but we also improved our overall understanding of agriculture.

But, it was like that anyway.

No matter how much I thought about it, I couldn’t find a way to lower the cost-effectiveness.

‘The approach was wrong.’

Non-experts are researching agriculture and smart farms, thereby lowering unit prices.

It was close to impossible.

I thought that it might be better to change the way of thinking.

So I studied again.

This time, we looked at the process by which an uneconomical industry became successful.

A glimmer of light appeared.

But in the end, the times had to accept it, and luck had to come into play.

“It’s luck… … .”

It is true that the times demand smart farms, but luck is not something to rely on.

Because it was a gamble where good and bad luck could overlap and go in completely opposite directions.

‘But Jeong Seung-ho and Dream Farm’s luck could be JTS.’

If he accepts my idea.

At this point, I gathered my thoughts and stood up from my seat.

And then he called Kwon Ji-young and Kwak Hyun-woo again and told them to go to Dream Farm.

“Are you sure you’re going to get your investment back? Wow, you’re so cold-hearted.”

“Yes, that’s right. Isn’t that too fast? The shareholders will be upset.”

“You should persuade CEO Jeong to focus more on the third-generation smart farm.”

“Yes, I see that it hasn’t been long since you became the representative. You’re also thirty years old now, so give me a chance.”

I chuckled and nodded.

“Oh, that’s what I’m going to do. But if my persuasion doesn’t work, then there’s nothing I can do.”

And after a while, I ran into Jeong Seung-ho again.

He had a complicated expression on his face at my return.

Be prepared to lose your investment, plan to find other investors, etc.

To that I said:

“Today is a very important day for us at JTS as we may invest further in Dream Farm.”

“… … !”