[Click eStock] "SG Expected to Accelerate Performance Turnaround with Eco-Friendly Asphalt Concrete"

On December 19, Kyobo Securities projected that SG would achieve strong growth in 2026, driven by its unique 'EcoSteelAscon' technology and increased orders for government construction projects.

Kyobo Securities identified the following as key factors driving SG's growth: continued benefit from the lifting of regulations on government-commissioned asphalt concrete projects for small and medium-sized enterprises; expansion of market share for 'EcoSteelAscon' through collaboration with domestic companies; and increased visibility of participation in global infrastructure investment through overseas patent applications.

Kim Jiyeong, a researcher at Kyobo Securities, stated, "'EcoSteelAscon,' developed by SG, is a 100% resource-circulating product made by recycling steel slag. It offers an economic advantage and durability, with a lifespan 2.2 times longer and construction costs 16.3% lower than conventional asphalt concrete. As the adoption of electric vehicles increases, the need for high-strength road paving materials capable of supporting heavy battery weights is growing, further highlighting SG's technological capabilities."

SG is also recognized for its unrivaled competitiveness in terms of environmental impact. 'EcoSteelAscon' reduces fine dust emissions by up to 85.7% compared to conventional asphalt concrete and has demonstrated a noise reduction effect of 9.3dB, earning certification for new construction and disaster safety technology from the Ministry of Land, Infrastructure and Transport. In addition, the eco-friendly facility 'SGR+' that eliminates Class 1 carcinogens has further solidified SG's exclusive position in the industry.

Expectations for SG's overseas business are also high. SG recently completed a patent application in Russia for its related technology to meet the demand for road infrastructure restoration in Russia. This is seen as a proactive measure for entering the global market, including future reconstruction projects in Ukraine, and SG is expected to benefit from the rebuilding of road transport infrastructure following the war.

An SG company official stated, "In 2024, revenue grew by approximately 47% to reach 118.9 billion won. Starting in 2025, we aim to solidify our position as the overwhelming leader in the eco-friendly asphalt concrete market while improving profitability."