KOSDAQMachinery058610

Spg

₩103,100▲ 3.00%2026-10-02 close

Market Cap

₩2.3T

Turnover

₩25.8B

Volume

250,000 shares

Shares out.

22.2M

PER

219.6×

PBR

7.6×

EPS

₩429

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close

Report overview

Reducer Localization Now Faces the Profit Test

SPG combines Korea's only full lineup of three precision reducer types with a new robot actuator business, yet its confirmed results show a mixed picture of shrinking revenue alongside recovering operating margins.

1
2025 revenue fell to KRW 341.7bn from KRW 388.5bn a year earlier, yet operating profit rose to KRW 17.9bn, lifting the operating margin from 3.2% to 5.3%.
2
Q2 2026 revenue of KRW 88.8bn was the highest of the past five quarters, but operating profit of KRW 4.0bn pulled the margin down to 4.5%.
3
It is the only Korean firm able to mass-produce all three precision reducer types: planetary, harmonic (SH) and RV (SR), while 2025 precision reducer revenue of about KRW 14bn accounted for just 3-4% of company-wide sales (Mirae Asset Securities, August 2026).
4
For its SDD robot actuator, the company said it has built a mass-production line and will begin output around September, with initial volumes starting below the tens-of-thousands range (ZDNet Korea, July 2026).
5
Broker 2026 operating profit estimates diverge widely, from Mirae Asset Securities' KRW 16.2bn (down 9.5% year on year) to Hana Securities' KRW 27.1bn.

Business structure

SPG began in 1991 developing and producing precision control motors and reducer components, listed on KOSDAQ in 2002, and absorbed Sungshin in 2016 to secure small-motor manufacturing know-how; it makes factory-automation packaging equipment, conveyor drive units for semiconductor and display lines, and small motors for home appliances.

On the revenue mix, fan motors for white goods and geared motors for industrial automation equipment account for roughly 65% and 30% of sales respectively (IBK Investment & Securities, July 2026).

Subsidiaries contribute about 33% of revenue versus about 67% on a parent basis, and overseas sales are around 71% of the total, indicating heavy export reliance (Hana Securities, January 2026).

The growth axis is precision reducers: it is the only Korean company able to mass-produce all three types, with planetary units used in high-torque industrial robots and machine tools, SH units suited to collaborative and humanoid robots, and SR units fitted to robot arms requiring high payload.

Its largest robot customer is Rainbow Robotics, which previously used Japanese and Chinese reducers but is understood to have switched its entire collaborative-robot reducer supply to SPG (Mirae Asset Securities, August 2026).

The RB-Y1 mobile dual-arm robot carries 22 units in total, including 14 harmonic reducers in the arms, six in the torso and two planetary reducers in the mobile base.

In legacy automation, the company supplies module parts for overhead wafer-transfer conveyor systems at Samsung Electronics semiconductor lines and says related orders are rising alongside new fab investment (Green Economy News, June 2026).

The competitive landscape is twofold: in reducers, Japan's Harmonic Drive Systems and Nabtesco have long dominated, while in robot actuators a contest is forming with incumbent Robotis and with Samhyun (ZDNet Korea, July 2026).

Earnings trend

Quarterly revenue · Operating profit

₩80.5B₩3.9B25Q2₩84.1B₩4.9B25Q3₩83.8B₩5B25Q4₩80.8B₩4.5B26Q1₩88.8B₩4B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩440.5B₩25.5B2022₩393.8B₩16B2023₩388.5B₩12.3B2024₩341.7B₩17.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩80.5B	₩3.9B	4.9%
2025Q3	₩84.1B	₩4.9B	5.9%
2025Q4	₩83.8B	₩5B	6.0%
2026Q1	₩80.8B	₩4.5B	5.5%
2026Q2	₩88.8B	₩4B	4.5%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩440.5B	₩25.5B	₩19.7B	5.8%	9.2%	66.0%
2023	₩393.8B	₩16B	₩11B	4.1%	5.0%	58.5%
2024	₩388.5B	₩12.3B	₩13.1B	3.2%	5.2%	56.4%
2025	₩341.7B	₩17.9B	₩9.1B	5.3%	3.5%	66.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The confirmed numbers tell a story of shrinking revenue with recovering margins. Consolidated revenue declined three years in a row, from KRW 440.5bn in 2022 to KRW 393.8bn in 2023, KRW 388.5bn in 2024 and KRW 341.7bn in 2025.

Operating profit, by contrast, rebounded from KRW 12.3bn in 2024 (3.2% margin) to KRW 17.9bn in 2025 (5.3%), approaching the 5.8% level of 2022.

The company and the market attribute this to mix change: reducing low-margin commodity geared motors and fan motors sold into China while raising the weight of precision reducers and higher-value industrial motors (Money Today, May 2026). Below the operating line, however, the trend was uneven.

Net profit attributable to owners moved from KRW 19.7bn in 2022 to KRW 11.0bn in 2023 and KRW 13.1bn in 2024, then fell to KRW 9.1bn in 2025; notably in Q4 2025 the company posted KRW 5.0bn of operating profit yet owners' net profit was essentially breakeven at minus KRW 0.04bn, pointing to non-operating or tax-related items.

Quarterly revenue rose from KRW 80.5bn in Q2 2025 to KRW 84.1bn in Q3, KRW 83.8bn in Q4, KRW 80.8bn in Q1 2026 and KRW 88.8bn in Q2 2026, the highest of the past five quarters.

Yet Q2 2026 operating profit of KRW 4.0bn was almost flat against KRW 3.9bn a year earlier, and the 4.5% margin was the lowest of the prior four quarters, which ranged from 4.9% to 6.0% (disclosed on 12 August 2026 with operating profit of KRW 3.997bn and revenue of KRW 88.77bn).

For reference, IBK Investment & Securities in a July 2026 report estimated Q2 revenue of KRW 91.1bn, operating profit of KRW 5.2bn and a 5.7% margin, so the confirmed profit came in below that external estimate.

On the balance sheet, 2025 operating cash flow of KRW 28.4bn was far above the KRW 11.3bn of 2024, while equity of KRW 258.0bn against liabilities of KRW 170.5bn lifted the debt-to-equity ratio from 56.4% in 2024 to 66.1% in 2025.

Industry analysis

The end-market theme is physical AI. Hana Securities argued in January 2026 that the spread of physical AI would sharply lift automation demand across manufacturing, logistics, defense and construction, and saw scope for SPG to expand global share.

The reducer market starts from the fact that Japan and China have split the field between them, and this is now overlaid by a trend in which US big tech firms are formalizing policies to exclude Chinese robot components ahead of humanoid mass production (KMJ, December 2025).

The real barrier to localization is production quality rather than possession of technology: a company official noted that many firms claim to make motors or reducers but few have reached genuine mass production and commercialization (Green Economy News, June 2026).

One step up, at the actuator level, competition is intensifying quickly.

Samhyun is investing KRW 40bn in a second Changwon plant with automated lines for 500,000 actuators, 1.5 million motors and 500,000 reducers a year, targeting completion in April 2027, while Robotis is building a KRW 60bn actuator plant in Uzbekistan with capacity of five million units a year and partial operation from October.

In short, the scarcity value SPG enjoys in domestic reducers may not carry over to the actuator market. Meanwhile the legacy core of appliance fan motors and commodity geared motors remains exposed to Chinese demand and price competition, which is why the company has deliberately been shrinking that exposure.

Outlook

The nearest checkable item is SDD actuator mass production.

In late July 2026 the company said it had built a mass-production line for the SDD, which integrates motor, reducer and controller, and would begin output around September, with initial volumes below the tens-of-thousands range and capacity to be expanded in stages as customer demand grows (ZDNet Korea).

The production lineup currently spans eight models and is to widen to 30 by year-end, and against a 5,000-unit SDD output target the company is pursuing 1,000 units for the Korea Institute of Machinery and Materials and 4,000 units via LG Science Park, according to Mirae Asset Securities (August 2026).

In the core reducer business, supply of planetary reducers for quadruped robots began in January 2026 at 12 units per robot, and with Rainbow Robotics having won an order for 1,000 quadruped robots from the Ministry of National Defense, related demand is expected once shipments ramp.

The same report projected sales to Rainbow Robotics rising from KRW 1.8bn in 2024 to KRW 4.4bn in 2025 and to the low tens of billions of won in 2026.

On overseas channels, the company was said to be reviewing non-disclosure agreements with several US firms after attending a major North American automation show in June (IBK Investment & Securities, July 2026).

Estimates for 2026 nonetheless diverge sharply: Mirae Asset Securities forecast 2026 revenue of KRW 350.2bn and operating profit of KRW 16.2bn (down 9.5% year on year, a 4.6% margin), followed by KRW 390.5bn and KRW 18.0bn in 2027; IBK Investment & Securities put 2026 revenue at KRW 363.0bn and operating profit at KRW 22.3bn; and Hana Securities projected KRW 418.6bn of revenue, KRW 27.1bn of operating profit and a 6.5% margin (dated August 2026, July 2026 and January 2026 respectively). How that spread narrows depends on how much reducer and actuator revenue actually converts into profit.

Valuation

PER

219.6×

PBR

7.6×

ROE

3.6%

EPS

₩429

BPS

₩12,361

Dividend per share

—

On an earnings basis the multiple sits well above the upper end of the band in which the shares have historically traded, and a sizeable premium is also attached relative to net assets.

That premium rests less on confirmed results than on expected future profit contribution from robot reducers and actuators; in fact 2025 precision reducer revenue of about KRW 14bn was only 3-4% of company-wide sales (Mirae Asset Securities, August 2026).

Summing the most recent four quarters gives revenue of KRW 337.5bn and operating profit of KRW 18.4bn, a margin in the 5% range, broadly consistent with the annual margin recovery from 3.2% in 2024 to 5.3% in 2025.

The denominator itself is unsettled, however, since 2026 profit forecasts range from a decline (Mirae Asset Securities at KRW 16.2bn) to a large increase (Hana Securities at KRW 27.1bn), meaning the market has yet to converge on an earnings base.

The axis of the valuation debate therefore lies less in the multiple than in how quickly initial SDD volumes and a rising reducer revenue share show up in quarterly results. Live multiples and price metrics are shown on the on-screen data card.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Korea's only full three-type reducer lineup

SPG is the only Korean company able to mass-produce all three precision reducer types - planetary, harmonic (SH) and RV (SR) - each addressing different joint requirements from industrial robots to collaborative robots and high-payload arms.

This combination is described as covering joints across the entire robot spectrum, from collaborative and industrial robots to quadrupeds (KMJ, December 2025).

The company states that it holds in-house all the core actuator technologies, including precision reducers, small servo BLDC motors and control (Robot News, June 2026). Having a technology stack that can move from single components to modules is the starting point of the bull case.

Links to large corporates and state projects

Mirae Asset Securities reported that Rainbow Robotics is currently SPG's largest revenue-generating partner and that its entire collaborative-robot reducer supply is understood to have switched to SPG products (August 2026).

In November 2025 the company signed an actuator cooperation memorandum with LG Science Park, jointly verifying actuator technology for LG robot platforms on the basis of integrated reducer, motor and controller technology (Financial Post).

Regarding the 5,000-unit SDD target, supply of 1,000 units to the Korea Institute of Machinery and Materials and 4,000 units via LG Science Park is being pursued, with about KRW 120bn of government policy funding to be deployed in the program, the same report said. Having customer touchpoints across both private and state-backed programs is cited as a business foundation.

Track record of margin recovery via mix

In the confirmed numbers, revenue fell but the operating margin improved from 3.2% in 2024 to 5.3% in 2025, and operating cash flow widened from KRW 11.3bn to KRW 28.4bn.

The cited driver was a mix shift that cut low-margin commodity geared motors and fan motors sold into China while raising precision reducers and higher-value industrial motors (Money Today, May 2026).

IBK Investment & Securities put the fan motor operating margin at about 3% and geared motors at about 10%, arguing that falling low-margin motor sales alongside rising reducer sales would improve company-wide profitability (July 2026). This suggests a structure in which composition, more than revenue scale, determines profit.

Bear factors

Robot revenue share is still small

2025 precision reducer revenue of about KRW 14bn was only 3-4% of company-wide sales (Mirae Asset Securities, August 2026). The company itself noted that robot revenue is not broken out as a separate line in its business report (Green Economy News, June 2026).

Most revenue still comes from appliance fan motors and industrial automation geared motors, the very segments behind the revenue decline from 2022 to 2025. The lag between expectation and actual profit contribution is the core of the bear case.

Profit shortfalls versus estimates and downward views

Confirmed Q2 2026 operating profit was KRW 4.0bn with a 4.5% margin, the lowest of the prior four quarters. Compared with the Q2 estimate published by IBK Investment & Securities in July 2026 (revenue of KRW 91.1bn, operating profit of KRW 5.2bn, a 5.7% margin), that is a shortfall on profit.

Furthermore, Mirae Asset Securities forecast 2026 operating profit of KRW 16.2bn, down 9.5% year on year, with a 4.6% margin (August 2026). A scenario in which the reducer growth story does not translate directly into higher company-wide profit therefore exists within research coverage too.

Large-scale capacity race in actuators

Samhyun is investing KRW 40bn in a second Changwon plant with automated lines for 500,000 actuators a year, targeting completion in April 2027, while Robotis is building a five-million-unit plant in Uzbekistan for KRW 60bn, starting partial operation in October, and aims to price low-cost models on par with Chinese products (ZDNet Korea, July 2026).

SPG's initial SDD volumes start below the tens-of-thousands range. Once price and scale competition takes hold, the scarcity value built in reducers may not carry over in the same way at the actuator stage.

Risk factors

Customer and project concentration

Mirae Asset Securities reported that Rainbow Robotics is currently SPG's largest revenue-generating partner (August 2026). Quadruped-related demand is also tied to the shipment schedule of Rainbow Robotics' 1,000-unit order from the Ministry of National Defense.

If a specific customer's production timetable slips, reducer revenue recognition can slip with it. In addition, a substantial share of SDD volume is being pursued through the Korea Institute of Machinery and Materials and LG Science Park, creating dependence on the pace of state-backed and partnership programs.

Earnings volatility

In Q4 2025 the company posted KRW 5.0bn of operating profit yet owners' net profit was essentially breakeven at minus KRW 0.04bn, and as a result full-year 2025 net profit of KRW 9.1bn was below the prior year's KRW 13.1bn despite higher operating profit.

Quarterly operating margins have swung between 4.5% and 6.0%, which is hard to call stable. With overseas sales at roughly 71% of the total, currency moves and regional demand shifts feed directly into earnings (Hana Securities, January 2026). Non-operating items can materially move net profit from quarter to quarter.

Financial burden and capital spending

The debt-to-equity ratio rose from 58.5% in 2023 and 56.4% in 2024 to 66.1% in 2025, with total liabilities increasing to KRW 170.5bn.

At the same time, SDD capacity is to be expanded in stages in line with customer demand, and widening the production lineup to 30 models by year-end implies continued equipment and development spending.

Operating cash flow of KRW 28.4bn in 2025 was an improvement, but early-stage new businesses often incur costs ahead of revenue recognition. If the reducer and actuator operations take longer to reach breakeven, company-wide margins could feel the strain.

What to watch next

September-October 2026
Confirm whether SDD mass production actually starts around September and whether it matches the timeline in which IBK Investment & Securities expected full ramp from October onward. Initial volumes and any disclosure of customers are the first gauge of new-business momentum.
Mid-November 2026
In the Q3 disclosure, the key question is whether revenue growth translates into a recovering operating margin. Since Q2 2026 delivered the highest revenue of the past five quarters yet the lowest margin at 4.5%, the durability of the mix-improvement effect can be assessed on the same basis.
December 2026
Time to check whether the SDD production lineup widens from eight models to 30 and whether the pursuit of 1,000 units for the Korea Institute of Machinery and Materials and 4,000 units via LG Science Park progresses to contracts and deliveries. The gap between target units and actual shipments will indicate execution capability.
Q4 2026 to H1 2027
Watch whether the non-disclosure agreements said to be under review with several US firms after the June North American automation show convert into actual supply contracts or order disclosures. Winning overseas customers is the variable that would reduce reliance on domestic programs.
February 2027
Full-year 2026 results will show where the company lands within the broker range. The point to watch is which direction the spread narrows: Mirae Asset Securities at KRW 350.2bn revenue and KRW 16.2bn operating profit, IBK Investment & Securities at KRW 363.0bn and KRW 22.3bn, and Hana Securities at KRW 418.6bn and KRW 27.1bn.

Overall view

SPG is shifting its business axis toward robot precision reducers and actuators while relying on appliance and industrial motors as its cash base.

The confirmed record shows revenue falling from KRW 440.5bn in 2022 to KRW 341.7bn in 2025 even as the operating margin recovered from 3.2% in 2024 to 5.3% in 2025 - a structure in which composition, not scale, drives profit.

Yet owners' net profit fell to KRW 9.1bn in 2025 from the prior year, and the Q2 2026 operating margin slipped to 4.5%, so it is early to call the margin recovery an established trend.

The bull case rests on the only domestic mass-production system covering all three precision reducer types, Rainbow Robotics' full switch of collaborative-robot reducers, and the start of SDD mass production around September.

The bear case rests on precision reducers still being just 3-4% of company revenue, Mirae Asset Securities forecasting lower 2026 operating profit, and the large actuator capacity build-outs by Samhyun and Robotis.

The very fact that 2026 broker forecasts range from decline to sharp growth captures the uncertainty of the current phase. What remains to be verified therefore reduces to three metrics: initial SDD volumes, the reducer share of revenue, and the quarterly operating margin. This report is for informational purposes and contains no buy or sell opinion and no target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.