[Click e-Stock] "SPG, Precision Mechanical Parts Manufacturer for Robots"

On April 29, Heungkuk Securities analyzed that SPG is the only precision mechanical parts manufacturer for robots in the industry that records significant sales and profits. The firm newly initiated coverage with a 'Buy' rating and set a target price of 34,000 won.

Choi Jongkyung, a researcher at Heungkuk Securities, stated, "SPG is a leading developer of geared motors in South Korea, particularly in the field of reducers," and explained, "Industrial reducers are becoming increasingly sophisticated in various robot and semiconductor equipment sectors." He added, "It is the only domestic company capable of mass-producing all three major types of precision reducers: planetary, SH, and SR."

He emphasized, "The company is leading the robotics industry alongside related firms by supplying precision reducers used in the joints of Rainbow Robotics' collaborative and humanoid robots, as well as drive-type actuators for Samsung Electronics' walking assistance robot (Botfit)."

Choi noted, "The SH/SR reducer segment, which requires high repeatability, sees strong demand in the replacement and repair market," and analyzed, "Interest in SPG's precision reducers, which replace expensive imported parts, is increasing." He projected, "The results of growth drivers such as new robot applications for the three types of precision reducers, the full-scale development of the replacement and repair market, and the expansion of new customers are becoming visible." He forecast, "Sales of precision reducers are expected to rise from about 10 billion won last year to between 20 billion and 25 billion won this year."