SPG, Production Increase and Price Hike... Expectations 'Up'

[Asia Economy Reporter Hyunseok Yoo] There are forecasts that SPG's strong performance will continue.

According to the financial investment industry on the 14th, SPG achieved sales of 109.1 billion KRW and an operating profit of 7.5 billion KRW in the third quarter. This represents increases of 13.0% and 6.5%, respectively, compared to the same period last year.

Choi Jong-kyung, a researcher at Heungkuk Securities, stated, "Stable sales growth trends across all domestic and international sectors continue, and the quarterly highest sales record was broken. Considering the base effect from last year's third quarter when Smartcara's performance was added, the actual sales growth rate reaches 21%."

In particular, the performance improvement trend is expected to continue in the second half of the year. He emphasized, "What is noteworthy is that the main factors for the strong performance in the third quarter, such as increased production volume and price hikes, have been fully implemented since September, so the outlook for future performance is also bright. Additionally, sales of SH reducers and SR reducers, which are difficult to produce and used in manufacturing multi-joint robots, collaborative robots reducers, and machine tools, have partially started, and they are expected to contribute more to next year's performance."

SPG is a specialized company in precision control motors and reducer components that develops and manufactures motors and reducers widely used in industrial and household applications, including standard AC·DC motors, BLDC motors, reducers, capacitors, and controllers. It completed its current business structure by absorbing Seongsin in November 2016. It operates domestic and overseas development and manufacturing corporations that possess 100% in-house production technology for all parts, as well as a sales corporation in the Americas (SPG USA).