[Click eStock] "SG, Expected Performance Improvement through Participation in Ukraine Reconstruction Project"

Independent research firm Valuefinder stated on the 17th that SG is likely to have significant stock price momentum in the future due to improved performance in its core business and expansion of its operations in Ukraine.

Lee Chungheon, a researcher at Valuefinder, said, “SG re-entered the public asphalt market earlier this year by successfully securing a large-scale contract worth 200 billion KRW over two years, including its subsidiaries, with the Public Procurement Service. Based on its entry into the public market, annual sales this year are expected to increase by 67% year-on-year to 135 billion KRW, and operating profit is expected to turn positive to 10 billion KRW, marking the start of a full-fledged growth phase.”

SG developed ‘Eco Steel Ascon,’ the first asphalt concrete in Korea to recycle 100% of its resources, through nine years of joint research and development with POSCO and Hyundai Steel. Utilizing the high strength and durability characteristics of Eco Steel Ascon, SG initially built references in areas with heavy loads such as bus-only lanes, ports, and logistics. Recently, its use has expanded gradually to national roads and highways.

The researcher added, “In February this year, SG established its local subsidiary SG Ukraine and signed a contract with Ukraine’s largest steel company, Metinvest Group, for the free supply of 42 million tons of slag over the next 10 years. If the efficiency of Eco Steel Ascon is proven in the test paving for the 230-kilometer P06 highway project in Mykolaiv Oblast scheduled for the third quarter of this year, it is highly likely to be used throughout the entire highway project.”

He continued, “Patents have also been filed in India and Indonesia, and SG is pursuing global expansion using Eco Steel Ascon not only in Ukraine but internationally.”

He concluded, “SG is the only domestic company to develop and expand the supply of the eco-friendly asphalt plant optimization facility ‘SGR+.’ Considering that the nationwide environmental facility market is estimated to be about 480 billion KRW, there is potential for additional performance upside through the SGR+ business.”