SBB Tech started in 1993 making bearings and expanded into precision reducers for robots. Its flagship 'ROBO Drive' is an ultra-precise harmonic reducer that converts a motor's fast rotation into slow but powerful motion for the joints of robot arms, and it supplies industrial and humanoid robots as well as semiconductor equipment; revenue is still small, in the ₩7 billion-a-year range, marking an early-stage growth company. A single-supply contract on May 19, 2026, followed by an amended filing on the 29th, offered clues on revenue visibility, while the May 14 quarterly report showed both +50.5% revenue growth and continuing operating and net losses, and a February disclosure of derivatives trading losses explains the backdrop to the Q1 net loss. What stands out lately is the scarcity value of having localized a harmonic reducer once monopolized by Japan, the steep +50.5% Q1 growth and the May supply contract; against that, operating losses are in their fifth year, ROE is -75.6% and the debt ratio is 257.8%, so finances are tight, and a P/B of 22.38x already prices in a large share of future growth and a turn to profit, meaning the pace of revenue growth and progress toward profitability must be checked quarter by quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 257.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 82.7%).
- The most recent full-year net result was a loss.
- Revenue rose 31.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 50.5% higher than a year earlier.
- ROE is -75.6% (total-net basis). It is below the sector average.
- Operating margin is -95.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder KPF 36.65% (corporate)
Controlling bloc incl. related parties 39.13%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- SBB Tech started in 1993 making bearings and has expanded into precision reducers for robots.
- A reducer is a device that converts a motor's fast rotation into slow but powerful motion, a core part built into each joint of a robot arm.
- Its flagship ultra-precise reducer, 'ROBO Drive,' belongs to the harmonic-reducer family that all but eliminates backlash (the play between gear teeth), and it is used in industrial and humanoid robots and in FPD (display) and semiconductor manufacturing equipment.
- Alongside these it also supplies bearings and drive modules.
- The significance the company communicates is that it produces at scale, domestically, a harmonic reducer that Japanese firms had effectively monopolized, taking on a role in localizing robot components.
- Revenue is still small, in the ₩7 billion-a-year range, and this is an early-stage growth company whose results are heavily swayed by the pace at which the robot market expands.
- The latest close is ₩33,600 and the market cap is ₩223.9 billion.
- The price sits below its 20-day line (₩45,712) and below its 60-day line (₩63,004).
- Trading beneath both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 28.3, close to depressed territory.
- The price is down 39.1% over one month and 28.2% over three months, and stands 68.4% below its 52-week high.
- Relative strength versus the KOSDAQ is 82 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 17% of all stocks by strength.
- Over the past three months it has lagged the index by 12.3%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On today's metrics alone, this is a company that shows losses and a high P/B together.
- With the latest annual (2025 standalone) net result in the red, the P/E (how many times one year's profit the share price is) cannot be calculated, while the P/B (how many times net asset value) is 17.91x and the P/S (how many times one year's revenue) is 38.88x.
- The ROE (how much is earned on equity in a year) is -75.6% and the operating margin is -95.3%, so costs still exceed what the company earns.
- The debt ratio (debt relative to equity) is 257.8% and the current ratio (assets convertible to cash within a year versus debt due within a year) is 82.7%.
- The key point here is that with trailing (last year's confirmed) figures in the red, numbers like P/E and P/B alone cannot properly gauge this company's fair value.
- For an early-stage component stock like this, the picture only comes into focus when you look at how fast revenue is growing and when that growth turns to profit, rather than at last year's numbers.
- So more than the fact that the P/B is high, the crux is whether the revenue expansion and turn to profit that price assumes are actually materializing, checked quarter by quarter.
- Revenue is clearly rising.
- Over five years it moved ₩6.8 billion (2021) → ₩7.5 billion (2022) → ₩5.1 billion (2023) → ₩5.5 billion (2024) → ₩7.2 billion (2025), recovering for two straight years after a 2023 trough, with a two-year revenue CAGR of 18.4%.
- The 2025 growth rate of +31.7% shows accelerating momentum, and Q1 2026 revenue reached ₩1.77 billion, up 50.5% from the same period a year earlier.
- The driver of this growth is demand to localize robot components.
- By producing domestically a harmonic reducer once monopolized by Japan, adoption in industrial and humanoid robots and in FPD and semiconductor equipment is rising, and disclosures such as the May supply contract add to demand visibility.
- Profit, however, has yet to follow: operating results were in the red across all five years (-₩6.9 billion in 2025), and the Q1 operating result was also a loss of -₩1.85 billion.
- Notably the Q1 net loss (-₩8.8 billion) far exceeded the operating loss, largely due to non-operating derivatives-related losses (disclosed 2026-02-24), and should be read separately from the core business trend.
- In short, the top line is in a steep growth phase, and the next watershed for this company's results is when that growth translates into economies of scale that narrow the losses and turn to profit.
- Recent filings concentrate on supply contracts and periodic reports.
- The single-supply contract signed on 2026-05-19 and its amended filing on 2026-05-29 are the first materials for gauging how the size of reducer supply and the timing of revenue recognition will land in future quarterly results.
- The quarterly report of 2026-05-14 (2026.03) is the official document carrying confirmed Q1 results, showing +50.5% revenue alongside continuing operating and net losses.
- Before that came the 2026-03-23 business and audit reports and the 2026-03-31 filing of stock options (employee share-purchase rights) and shareholder-meeting results.
- Meanwhile the 2026-02-24 disclosures of 'derivatives trading losses' and a 'change of 30%+ in the earnings structure' explain why the Q1 net loss widened and should be reviewed together.
- Supply-contract disclosures are a signal that raises revenue visibility, though there is a lag before the contract amount lands as actual revenue and cash flow, so they are best compared against the next quarter's results.
- The strengths are clear: the scarcity value of having localized a harmonic reducer once monopolized by Japan, two straight years of revenue recovery and steep +50.5% Q1 growth, and the added demand visibility from the May supply contract.
- Being at the center of the robot-component localization theme is also an attraction.
- The cautions deserve an honest look too.
- Operating losses are in their fifth straight year, with ROE at -75.6% and an operating margin of -95.3%, so the company is not yet profitable, and finances are tight with a debt ratio of 257.8% and a current ratio of 82.7%.
- A P/B of 22.38x is a high perch measured against last year's loss-making results, and this price already reflects a large share of future growth and a turn to profit.
- In short, the stock is strong in phases where revenue growth quickly translates into profit and supply contracts land as actual results, and weak in phases where the turn to profit is delayed or robot demand expands slowly, leaving only expectations in the price.
- Rather than asserting one direction, the crux of watching this company is checking two forms of progress each quarter: the pace of revenue growth and the narrowing of losses toward profitability.
🔎 Valuation vs peers Overvalued
Instead of the plain 'machinery and equipment' industry median, we directly selected names whose actual business overlaps in robot drive components (precision reducers and drive modules) for comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SPG | 174.84x | 6.19x | 3.54% |
| Robotis | 589.25x | 9.56x | 1.62% |
| Yujin Robot | — | 15.88x | -24.32% |
(a) Position: a P/B of 29.68x is higher than SPG (7.86x), which makes precision reducers, and Robotis (13.42x), which makes drive modules, and even higher than fellow loss-making component maker Yujin Robot (24.79x). (b) Premium: the pace of revenue growth and the scarcity of localization are the basis for a premium, but with ROE at -75.6% and an operating margin of -95.3%, the company is not yet profitable, so that premium is wide. (c) Limits of trailing and the forward basis: with last year's confirmed results in the red, valuation cannot be measured on a P/E, and on P/B and P/S alone it sits in a high range. The future can only be gauged from a DART seasonality approximation of confirmed quarterly results (annual revenue of about ₩8.5 billion) given the absence of official company guidance, and even that fails because operating and net results are in the red. So 'overvalued' means a price justified only if the turn to profit and revenue expansion are realized as quickly as hoped; it is best read as a stretch of pre-baked expectations rather than a flat call of cheap or expensive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩2.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩33,600 and the market capitalization is ₩223.9 billion. The price sits below its 20-day moving average (₩45,712) and below its 60-day moving average (₩63,004). 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 28.3, near oversold territory. The one-month change is -39.1%, the three-month change is -28.2%, and the position relative to the 52-week high is -68.4%. Relative strength versus the KOSDAQ is 82 (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 83% of all stocks. Over the past three months it lagged the index by 12.3%. 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 -12.32% / 6M +15.91% / 12M +51.91%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 17.91x is above the sector median (1.44x).
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 -75.6%, below the sector average (5.0%). The operating margin is -95.3%. The debt ratio is 257.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.4M | $3.6M | $4.8M | +31.71% ↑ faster |
| Operating profit | -$3.7M | -$4.6M | -$4.5M | — |
| Net profit | -$7.3M | -$594,405 | -$6.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.5M | $5.0M | $3.4M | $3.6M | $4.8M |
| Operating profit | -$1.5M | -$1.2M | -$3.7M | -$4.6M | -$4.5M |
| Net profit | -$1.9M | -$3.5M | -$7.3M | -$594,405 | -$6.3M |
| Revenue CAGR | 4-yr avg 1.51% | ||||
Revenue rose 31.7% year over year (2023 ₩5.1 billion → 2024 ₩5.5 billion → 2025 ₩7.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.5%. The two-year revenue CAGR is 18.4%. In the most recent quarter (Q1 2026), revenue was 50.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 31.7% year over year, a sign of growth.
Points to watch
- Debt is somewhat higher than equity (debt ratio 257.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 82.7%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29UpdateAmendment to a single-supply contract — detailed correction of the contract signed on May 19Near term: an item reconfirming the size and term through a correction of contract conditions. Medium term: material for gauging whether the revenue-recognition timing of the reducer supply contract is reflected in later quarterly results. Source
- 2026-05-19UpdateSigning of a single-supply contract — supply of reducers and other componentsNear term: a positive signal that raises revenue visibility. Medium term: there is a lag before the contract amount flows through to actual revenue and cash flow, so it needs to be checked against quarterly results. Source
- 2026-05-14UpdateQuarterly report (2026.03) — Q1 revenue ₩1.77 billion (+50.5%), continuing operating and net lossesNear term: strong revenue growth and continuing losses are confirmed at the same time. Medium term: a benchmark for comparing against the next quarter to see whether growth translates into a turn to profit. Source
- 2026-02-24UpdateDisclosure of derivatives trading losses and a change of 30%+ in the earnings structureNear term: the backdrop to net profit being pulled sharply lower by non-operating losses. Medium term: it explains why the Q1 net loss (-₩8.8 billion) exceeded the operating loss (-₩1.85 billion), so it should be read separately from the operating trend. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue (standalone) | ₩7.2 billion(₩7,198,979,874) | DART (2025.12) | Confirmed | link |
| Q1 2026 revenue | ₩1.8 billion(₩1,772,227,353, +50.5% YoY) | DART (2026.03) | Confirmed | link |
| Q1 net loss size | -₩8.8 billion(-₩8,805,677,253) | — | Unverified | link |
| 2026 revenue seasonality approximation | approx. ₩8.5 billion / 2 approx. ₩2.3 billion | — | Unverified | link |
Recent filings
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-19Single supply/sales contract
- 2026-05-14PeriodicQuarterly report
- 2026-03-31Single supply/sales contract (amended)
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-13Shareholders' meeting notice
- 2026-02-27Shareholders' meeting notice
- 2026-02-24Disclosure
- 2026-02-24EarningsEarnings 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.