"SPG, Broadening Its Customer Base from Defense to U.S. Big Tech" [Click eStock]

LS Securities said on the 22nd that SPG, which is expanding its business into robotic precision reducers and actuators, is "broadening its customer base from the defense sector to U.S. Big Tech."

Lee Byung-geun, a researcher at LS Securities, identified quadruped (four-legged) robots for defense as a sector to watch in the short term. SPG supplies the robots' leg drive units to Company S and plans to expand its supply scope to include actuators.

Each robot uses 12 planetary reducers, devices that reduce motor speed to increase torque, and each unit is expected to cost approximately KRW 500,000 to 600,000. Reducer sales per robot are estimated at KRW 6 million to 7.2 million. The analysis suggests that if defense-related demand is added to existing demand for collaborative robots, increased production by customers could lead to higher component sales.

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SPG is developing mini actuators for small robots with a U.S. customer. "The key is to achieve both miniaturization and high output," Lee said. Integrated design that draws on the company's existing expertise in manufacturing motors and reducers is expected to be a competitive advantage.

SPG is broadening its supply scope with integrated actuators that combine motors and reducers with controllers. It has developed a standard model based on planetary reducers and is preparing products based on harmonic drives for joints that require high precision. As of the end of September, the company had two production lines, with annual capacity of 120,000 to 150,000 actuators.

Lee also expects demand to secure supply chains that can replace Chinese-made components to create additional order opportunities for SPG.

Robot-related sales rose from approximately KRW 10.4 billion in 2024 to KRW 14 billion last year. The company is targeting approximately KRW 20 billion this year and at least KRW 30 billion in 2027. These figures combine reducer and actuator sales, with actuator sales still at an early stage.

However, robotics remains more of a supporting business than a core one. Industrial geared motors and home appliance fan motors accounted for approximately 96% of sales last year. Revenue fell 12% to KRW 341.7 billion last year, while operating profit rose 45.4% to KRW 17.9 billion. Revenue in the second quarter of this year increased 10.3% to KRW 88.8 billion.

"The robotics business is currently putting pressure on earnings due to development expenses and initial production costs," Lee said. "The key is to convert the production capacity we have secured into actual shipments and profits."

This content was produced with the assistance of AI translation services.