[IPO] SBV Tech "2024 Sales Target 43 Billion KRW, Operating Margin 22%"

On the 28th, Ryu Jaewan, CEO of SBV Tech, held a press conference to introduce the company for its KOSDAQ listing. / Photo by SBV Tech

[Asia Economy Reporter Jang Hyowon] SBV Tech, a company specializing in reducers for robots, is knocking on the door of KOSDAQ. SBV Tech revealed its vision to achieve sales of 43 billion KRW in 2024 through diversification of sales channels for robot reducers and global expansion after listing.

On the 28th, CEO Ryu Jaewan of SBV Tech held a press conference in Yeouido, Seoul, to introduce the company for the KOSDAQ listing. SBV Tech is a company that has developed robot reducers with proprietary technology.

Reducers account for the largest cost proportion in robots, about 30-40%, and are essential components that cannot be omitted when using electric motor power, making them highly important. In particular, harmonic reducers, which act as the "joints of robots," are expanding their application fields beyond industrial uses such as semiconductors and displays to medical robots, service robots, transport robots, and defense sectors.

To design and manufacture high-precision harmonic-type reducers, demanding technologies such as ultra-thin bearing parts with elasticity, ultra-small gear processing technology, and wear-resistant heat treatment technology are required, creating high entry barriers for latecomers.

In a market situation where most high-precision reducers are imported from Japan, SBV Tech is the only domestic mass producer of harmonic reducers. Especially, SBV Tech’s precision reducer product brand, "ROBO DRIVE," has secured high recognition domestically.

SBV Tech has secured all core source technologies necessary for design and manufacturing through world-class reducer experts and unique research personnel, including CEO Ryu Jaewan, who has a total of 31 years of industry experience. The company has built high technological barriers by owning numerous intellectual property rights such as equipment needed for development and mass production, proprietary bearing manufacturing technology, and gear design technology.

Based on this independent proprietary technology, SBV Tech’s core competitiveness lies in its ability to customize products according to customer needs, significantly shorten delivery times, and maintain strong price competitiveness.

The global robot market is growing at an average annual rate of about 32%, from approximately 57 billion USD last year to 177.2 billion USD by 2025. SBV Tech is expanding its portfolio based not only on the manufacturing and design of harmonic reducers but also on actuators (robot drive modules) utilizing reducers, ultra-thin bearings used in semiconductor production processes, and WRIST products, which are key driving components used in semiconductor wafer transport.

Furthermore, SBV Tech plans to create new markets by horizontally expanding its product lineup with precision reducers used in medium-to-large industrial robots such as RV (cycloidal) reducers, while vertically expanding capabilities with drive motor control systems and reducer modules customized to customer demand, providing services across the entire reducer domain.

The funds secured after listing will be used to establish production lines optimized for mass production and automate processes to pursue margin improvement. Based on this, the company aims to turn profitable from 2023, when full-scale mass production sales begin, targeting sales of 43 billion KRW and an operating profit margin of over 22% in 2024.

CEO Ryu Jaewan of SBV Tech stated, “We will actively expand into fields requiring reducer components such as collaborative robots and service robots, and enter the rapidly growing Chinese robot market with better quality and competitive prices, aiming to become a global top-tier tech company.”

Meanwhile, SBV Tech plans to raise 1.8 million shares (1.2 million new shares and 600,000 existing shares) through this public offering. The expected offering price is between 10,100 KRW and 12,400 KRW, aiming to raise approximately 18.2 billion to 22.3 billion KRW. After demand forecasting by the 29th, the general public subscription will be held on October 5-6. The lead manager is Mirae Asset Securities.