[Click e Stocks] SPG, Hyundai Motor·Foxconn Near Supply of Reducers to China's Largest Industrial Robot Manufacturer

[Asia Economy Reporter Hyungsoo Park] Research Alom on the 26th described SPG as a company possessing core technologies in the rapidly growing robotics industry and predicted that sales of robot reducers for the Chinese market will increase significantly. The appropriate target price was suggested to be 18,500 KRW.

Choi Seonghwan, Senior Researcher at Research Alom, explained, "SPG is rapidly replacing Japanese reducers by developing ultra-precision reducers essential for factory automation," and added, "Last year, they succeeded in domesticating the friction drive unit based on cyclo reducers installed on Hyundai Motor's Indonesia line."

He continued, "They registered as a first-tier vendor for Hyundai Motor and supplied 1,340 sets to the Indonesia factory," adding, "Once they develop a 5.5 kW unit, it is expected that supply will be possible to the new Indonesia line and the Kia line at the Asan plant."

Researcher Choi analyzed, "Starting this year, they will actively collaborate with Foxconn, the iPhone contract manufacturer, and Shinsong Robot, China's largest industrial robot manufacturer," and noted, "SPG is currently expanding its factory in Qingdao to a scale of 33,000㎡."

Furthermore, it is understood that Foxconn and Shinsong Robot are building automation facilities using SPG reducers, and he emphasized, "Once the quality of SPG's ultra-precision reducers is verified, long-term contracts are expected to be discussed." He added, "The line expansion will be completed around June to July this year," and explained, "Both Foxconn and Shinsong Robot have bases in Qingdao, so synergy is expected when they cooperate."

It is estimated that SPG will achieve sales of 410 billion KRW and operating profit of 26.1 billion KRW this year, representing increases of 15.5% and 44.2%, respectively, compared to last year. Researcher Choi predicted, "As the sales proportion of highly profitable BLDC and factory automation equipment increases, the operating profit margin will continue to improve."