[Click eStock] "SPG, Target Price Raised for Core Robot Component Manufacturer"

Heungkuk Securities analyzed on the 26th that SPG has added competitiveness in core robot components, highly recognized both domestically and internationally, on top of a solid business structure. The target stock price was raised from the previous 23,000 KRW to 39,000 KRW.

Choi Jong-kyung, a researcher at Heungkuk Securities, explained, "SPG's stock price rose 68% in March alone," adding, "This year, the stock prices of robot-related stocks have shown a clear upward trend across the domestic stock market."

He continued, "Many listed companies within the robot industry value chain, such as Rainbow Robotics, Neuromeka, Yujin Robot, Robostar, SBV Tech, and T Robotics, have seen their stock prices increase."

He emphasized, "Although SPG's stock price has risen 85% since the beginning of this year, its growth rate is relatively low among robot-related stocks."

Researcher Choi explained, "In the first quarter of this year, Rainbow Robotics recorded sales of 3.1 billion KRW and an operating loss of 23.4 billion KRW," and "SBV Tech recorded sales of 1.3 billion KRW and an operating loss of 1 billion KRW." He added, "While most robot-related companies posted operating losses, SPG achieved an operating profit of 6 billion KRW."

Researcher Choi analyzed, "SPG continues to develop, mass-produce, and invest in facilities for precision reducers such as planetary reducers, rotary table reducers, SH reducers, and SR reducers." He emphasized, "SPG is recognized as the only company in Korea capable of mass-producing all planetary, SH, and SR precision reducers, and has been designated as a top-tier company in materials, parts, and equipment."