[Click eStock] "SPG, Expecting Increased Sales of High-Precision Robot Gear Reducers"

[Asia Economy Reporter Hyungsoo Park] Ebest Investment & Securities forecasted on the 19th that SPG's profit margin will increase as sales of reducers for industrial automation rise.

Researcher Eun-ae Jo of Ebest Investment & Securities explained, "Before SPG's growth, the geared motor market was dominated by Japanese products," adding, "Since the establishment of SPG, the domestic small geared motor market has started to shift towards domestic products, leading to import substitution."

She continued, "SPG has set a sales target of 458 billion KRW for this year," and added, "the sales proportion of geared motors for industrial automation, which have high profit margins, will increase from 33% last year to 35% this year."

She also analyzed, "SPG succeeded in mass-producing high-precision robot reducers, which were monopolized by Japanese products in 2019," and said, "They are supplying SR reducers to Semes and Hyundai Motor Company." Furthermore, she emphasized, "At the beginning of this year, they completed testing for supplying SR reducers to US Company A," and "are currently expanding production capacity for large-scale supply."

Researcher Jo stated, "Once the SR reducer expansion is completed in the second half of this year, the annual production capacity will reach 10,000 units, securing a mid- to long-term sales growth engine," and explained, "high-precision reducers for robots are a high value-added business area where Japanese manufacturers held most of the market share."

She advised, "Considering the overall increase in demand in the robot industry and the expansion of domestic market share by SPG, mid- to long-term interest is necessary."