Kyobo Securities Publishes Report Titled 'Call Option of a Robotics Parts Company' on SBB Tech

A securities analysis has emerged that SBB Tech is increasing its mid-to-long-term growth potential based on its competitiveness in localizing harmonic reducers and the expansion of its drive module business.

On the 29th, Kyobo Securities published a new report on SBB Tech titled 'Call Option of a Robotics Parts Company.' In this report, Kyobo Securities analyzed the company without assigning a specific investment opinion (Not Rated).

Focus on Localization of Harmonic Reducers and Drive Module Scalability

Kyobo Securities evaluated SBB Tech as the most notable company among domestic firms localizing harmonic reducers. Harmonic reducers are core components in robots that require precise control, such as industrial robots, collaborative robots, and humanoids.

In particular, Kyobo Securities gave high marks to the fact that SBB Tech is taking a step further from its existing reducer business foundation to expand its business territory into the 'drive module' sector. The analysis suggests that expanding the business to modularized products beyond simple parts supply will significantly strengthen product competitiveness and the profit structure. Furthermore, it diagnosed that the mid-to-long-term growth foundation is very solid as the company is building a reducer portfolio applicable to various industries.

Short-Term Deficit Due to Proactive Investments... Semiconductor Industry Recovery as a Breakthrough

However, current performance is still at a stage where the investment burden continues. SBB Tech's consolidated revenue for the first quarter of this year was 1.8 billion won, a 50.5% increase compared to the same period last year. Yet, due to the impact of proactive research and development (R&D) and production investments to expand the reducer and drive module businesses, it recorded an operating loss of 1.8 billion won, continuing its deficit.

Nevertheless, Kyobo Securities projected that an improvement in the semiconductor industry cycle will support stable demand for the reducer business. In addition, it anticipated that if the full-scale growth of the robot industry and the expansion of the drive module business materialize, there is ample possibility for mid-to-long-term performance improvement.

In the industry, as the expansion trend in the humanoid and industrial robot markets continues, market interest in key component localization companies like SBB Tech is growing further. Securing new customers, commercializing drive modules, and improving profitability are cited as key variables that will determine the company's corporate value in the future.

[This article was written with the assistance of AI. This article does not recommend any investment, and the final decision and responsibility for investing lie with the investor.]