SPG built a 33-year base supplying standard AC geared motors (an integrated motor-plus-reducer unit) to automation equipment, logistics, home appliances, and medical devices, and has layered on a growth axis of precision reducers that act as robot joints (harmonic, cycloidal, and planetary) and SDD robot actuators that combine a motor and reducer. In March 2026 it laid out a corporate value-up plan setting capital efficiency and shareholder returns as medium- to long-term tasks, and in May a preliminary first-quarter result confirmed rising earnings while it communicated the direction of its robot reducer and actuator business through IR. Worth noting recently is that the entry barrier of being Korea's only in-house maker of all three reducer types, along with a rebound off an earnings trough, are strengths; but with last year's P/E of 179x and P/B of 6.4x already reflecting considerable robot-theme expectations, if the actuator ramp does not translate into earnings numbers, the high bar could turn into a burden.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 12.0% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 13.4% lower than a year earlier.
- ROE is 3.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.2%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Jun-ho 19.84% (individual)
Controlling bloc incl. related parties 37.97%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- SPG makes and sells precisely controlled 'turning force.' The root of its revenue is the standard AC geared motor (an integrated motor-plus-reducer unit) it has produced for 33 years, which goes into industrial settings such as automation equipment, logistics, home appliances, and medical devices.
- On top of that it has layered a precision-reducer lineup that serves as robot joints: KSH (harmonic/strain-wave gears), KSR (cycloidal/RV type), and precision planetary reducers.
- More recently it launched the SDD (SPG Direct Drive) robot actuator, which combines a motor and reducer into one unit, expanding beyond parts sales toward selling at the level of joint modules.
- In short, on top of a stable revenue base of industrial motors, it has added a growth axis of joint components for robots and humanoids.
- The latest close is ₩72,000 and the market cap is ₩1.6 trillion.
- The price sits below the 20-day line (₩81,975) and below the 60-day line (₩106,612).
- Trading under both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 37.2, a neutral level.
- The one-month change is -18.6%, the three-month change is -30.7%, and the price stands -54.5% below its 52-week high.
- Relative strength versus the KOSDAQ is 93 (on a 1-99 scale, weighting recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 6% of all stocks by strength.
- Over the past three months it lagged the index by 13.2%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On confirmed 2025 results, the P/E ratio (how many times a year's earnings the price represents) is 174.84x and the P/B (how many times book net assets the price represents) is 6.19x, so the absolute figures are high.
- This trailing P/E, however, uses trough earnings as its denominator, as 2025 net profit was compressed to ₩9.13 billion, so it does not fully reflect the company's current earnings power.
- ROE (how much the company earns in a year on its equity) is still low at 3.5%, and the operating margin is 5.2%.
- The balance sheet is sound: the debt ratio (debt relative to equity) is 66%, the current ratio (cash-like assets against debt due within a year) is 195%, and the interest-coverage ratio is 7.4x, so debt is manageable.
- The dividend is ₩150 per share (a yield of about 0.2%) with a payout ratio of 60.7%, showing that the company maintained the dividend even in a year of lower earnings.
- Over five years, revenue eased from ₩440.5 billion in 2022 to ₩341.7 billion in 2025, and net profit also fell from ₩19.7 billion to ₩9.1 billion over the same period.
- On the surface this is a down cycle, but a closer look shows a clear inflection signal.
- Operating profit turned first, rising 45.4% year on year in 2025, and in the first quarter of 2026, even with revenue still down 13.4% year on year, operating profit rose 9.7% and net profit rose 11.1%.
- Earnings growing while revenue falls means low-value-added volume is dropping out while the mix of higher-margin precision reducers and actuators rises, improving the profit structure.
- The picture from here hinges on the ramp of robot joint components.
- Its position as the only company in Korea that makes all three reducer types, expanding sales of the new SDD actuator in the first half, and broadening supply relationships with robot makers - taken together, these put 2026 earnings on a path to clearly exceed the trough year of 2025.
- For an inflection stock like this, the reality shows only when you look at this year's earnings rather than the trailing P/E on last year's results; reflecting the recovery in earnings power, the current price is not as expensive as last year's P/E implies.
- In 2026 the disclosure flow points to earnings recovery alongside shareholder returns and growth strategy.
- On March 26, a voluntary disclosure laid out a corporate value-up plan setting capital efficiency (ROE) and shareholder returns as medium- to long-term tasks, and the annual general meeting was held the same day.
- On March 4, a disclosure that profit structure had moved by more than 30% confirmed it was a year of large earnings swings.
- A fair disclosure of preliminary Q1 results on May 13 and the quarterly report on May 14 confirmed the earnings increase in the numbers, and it held investor briefings (IR) twice, on March 31 and May 11, communicating the direction of its robot reducer and actuator business to the market.
- The points to watch are clear.
- Strengths are the entry barrier of being Korea's only in-house maker of all three reducer types, a stable revenue base in industrial motors, and the inflection off an earnings trough together with a solid balance sheet.
- As demand for robot and humanoid joint components grows, the company's position is favorable.
- The cautions must be weighed too.
- The absolute valuation (last year's P/E of 179x, P/B of 6.4x) already reflects considerable robot-theme growth expectations, so if actuator sales and robot supply volumes do not grow as fast as hoped, the price will struggle to justify that bar.
- That revenue in absolute terms is still declining and that ROE is low in the 3% range also underline that the pace of recovery is the key.
- In sum, this is a stock that is strong when the robot joint-component ramp translates into earnings numbers, and where high expectations turn into a burden if the ramp is delayed.
🔎 Valuation vs peers Inconclusive
Because pure comparables with meaningful earnings are rare in robot components, robot and reducer-theme listed companies (Yujin Robot, T-Robotics, Hyulim Robot) serve as a premium peer set, though SPG is positioned differently in that, unlike them, it actually earns profits and makes the reducers they need.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Yujin Robot | 0.00x | 15.88x | -24.32% |
| T-Robotics | 0.00x | 5.14x | -85.18% |
| Hyulim Robot | 0.00x | 6.29x | -13.25% |
Last year's (2025) P/E of 179.7x and P/B of 6.36x are high in absolute terms, but this trailing P/E uses 2025 net profit (₩9.1 billion) - an earnings trough - as its denominator, which is a major limitation. Compared with robot-theme peers Yujin Robot, T-Robotics, and Hyulim Robot, which mostly run losses (no P/E can be derived) and trade at P/B of 6-18x, SPG's premium is underpinned by the reality that it actually mass-produces reducers and earns profits. On a current-year basis that reflects the earnings inflection, it is not as expensive as last year's P/E, but it is still a bar that heavily reflects growth expectations for robot joint components, so the pace of the ramp is the key to justifying this valuation. For these reasons, rather than declaring it undervalued or overvalued, inconclusive is appropriate.
Price history Close · MA20 · MA60
The latest close is ₩72,000 and the market capitalization is ₩1.6 trillion. The price sits below its 20-day moving average (₩81,975) and below its 60-day moving average (₩106,612). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 37.2, a neutral level. The one-month change is -18.6%, the three-month change is -30.7%, and the position relative to the 52-week high is -54.5%. Relative strength versus the KOSDAQ is 93 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 94% of all stocks. Over the past three months it lagged the index by 13.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -13.16% / 6M +15.28% / 12M +161.12%
Key metrics vs sector median
Valuation
The P/E of 174.84x is above the sector median (19.17x). The P/B of 6.19x is above the sector median (2.15x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 3.5%, above the sector average (2.0%). The operating margin is 5.2%. The debt ratio is 66.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $261.0M | $257.5M | $226.5M | -12.05% ↓ slower |
| Operating profit | $10.6M | $8.2M | $11.9M | +45.43% ↑ faster |
| Net profit | $7.3M | $8.7M | $6.1M | -30.35% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $275.9M | $291.9M | $261.0M | $257.5M | $226.5M |
| Operating profit | $15.6M | $16.9M | $10.6M | $8.2M | $11.9M |
| Net profit | $15.2M | $13.0M | $7.3M | $8.7M | $6.1M |
| Revenue CAGR | 4-yr avg -4.82% | ||||
Revenue fell 12.0% year over year (2023 ₩393.8 billion → 2024 ₩388.5 billion → 2025 ₩341.7 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit rose 45.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.8%. The two-year revenue CAGR is -6.9%. In the most recent quarter (Q1 2026), revenue was 13.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 12.0% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsFair disclosure of preliminary Q1 2026 consolidated results. Revenue ₩80.83 billion (-13.4% YoY), operating profit ₩4.49 billion (+9.7%), net profit ₩3.46 billion (+11.1%), with earnings rising even as revenue fell.Short term: confirms earnings improvement from a rising share of precision products, providing evidence of the earnings inflection. Medium term: a first check on whether the higher-margin reducer and actuator mix keeps improving. Source
- 2026-03-26FilingCorporate value-up plan (voluntary disclosure). Announced a value-up plan setting capital efficiency (ROE) and shareholder returns as medium- to long-term tasks.Medium term: formalizes intent to improve dividends and capital efficiency. If accompanied by an earnings recovery, it could translate into greater capacity for shareholder returns. Source
- 2026-05-11IRInvestor briefing (IR) held. Communicated the direction of the robot reducer and actuator business and results to the market.Short term: improves market understanding of the robot joint-component strategy. Medium term: progress on the new SDD product and reducer orders is a key variable for the share direction. Source
- 2026-03-04EarningsDisclosure of a change of more than 30% in revenue or profit structure. Reported that 2025 net profit moved substantially (-30.4%) versus the prior year.Short term: confirms that 2025 was an earnings trough. Medium term: against that trough, the scale of the 2026 earnings recovery could stand out. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 net profit | ₩3.5 billion | ₩3.5 billion | Confirmed | link |
| 2025 net profit | ₩9.1 billion | 30% | Confirmed | link |
| In-house production of all three reducer types (business reality) | — | (KSH)·(KSR)· SDD | Confirmed | link |
| 2026 net profit (annual) | approx. ₩11.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-11Disclosure
- 2026-03-31Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-04Shareholders' meeting notice
- 2026-03-04EarningsEarnings filing
- 2026-02-23OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.