[Click eStock] "SPG, Profitability Improvement Driven by Increased Sales of High Value-Added Products"

[Asia Economy Reporter Hyungsoo Park] Hi Investment & Securities expected that SPG's profitability will significantly improve starting this year due to sales growth of high value-added products.

Lee Sangheon, a researcher at Hi Investment & Securities, explained, "The main products are largely divided into industrial geared motors and home appliance fan motors," adding, "In an environment where automation facilities such as smart factories are increasing, sales of standard geared motors with high added value will rise."

He continued, "Although home appliance fan motors, which have relatively low added value, are maintaining their existing sales scale, price increases are being pursued," and added, "Above all, sales of fan motor modules applied to cleanrooms such as FFU and EFU will begin this year."

He analyzed, "The stock is trading at a price-to-earnings ratio (PER) of 10.6 times based on this year's expected performance," and said, "Starting this year, performance improvement will be fully underway due to sales growth of high value-added products."

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