Humanoid Competition Starts... Why ESPG Is Rising

Stock Price Up 33.8% This Year
Precision Reducer Manufacturer for Core Robot Components
Institutional Investors Net Buy 21.5 Billion KRW Year-to-Date

Samsung Electronics announced that it plans to rapidly and systematically develop advanced future robots, such as intelligent humanoids, by integrating artificial intelligence (AI) and software technology with Rainbow Robotics' robot technology. As expectations grow for the domestic robot industry to expand, the corporate value of SPG, which has succeeded in domestic production of precision reducers, is increasing.

According to the financial investment industry on the 3rd, SPG's stock price has risen 33.8% since the beginning of this year. Considering that the KOSDAQ index rose 7.4% during the same period, the market-beating return reaches 26.4 percentage points (P). Domestic institutional investors led the stock price increase by purchasing 21.5 billion KRW worth of shares in January alone.

Founded in March 1991, SPG is a specialized manufacturer of small geared motors (Precision control geared motor). Small geared motors, produced by attaching a gear box set (reduction gear) to a small motor, are mainly used in automation systems and home appliances. They provide the power to carry or lift heavy objects.

The reason SPG is gaining attention alongside the growth expectations of the robot industry is that it has succeeded in domestic production of precision reducers used in collaborative robots and humanoids. SPG is one of Rainbow Robotics' partner companies. It developed harmonic reducers used in major collaborative robots in 2016. SPG products are used not only in collaborative robots but also in quadruped walking robots and wearable robots.

Lee Sang-soo, a researcher at iM Securities, explained, "Expectations are growing that this year will be the inaugural year of the domestic robotics industry." He added, "Market interest, which started with humanoids, is spreading to collaborative robots, wearable robots, and other materials, parts, and equipment (MPE).” He continued, “Major domestic humanoid companies are likely to start mass production schedules by this year at the latest. We recommend expanding the proportion of companies with a high possibility of being included in the humanoid supply chain among key MPE companies such as precision reducers, encoders, and actuators."

On the 31st of last month, Samsung Electronics stated in its earnings conference call, "We have set solving humanity's future societal problems, innovating life experiences, and securing new growth engines as the goals of our robot development business." They are developing multi-purpose advanced robots centered on the Future Robot Promotion Team, newly established directly under the CEO at the end of last year. While strengthening their own capabilities, they also plan to invest and cooperate with promising domestic robot AI platform companies.

Along with Samsung Electronics, domestic robot companies consider securing the supply chain of materials and parts an essential step to dominate the robot market. Having experienced the COVID-19 pandemic and disputes between the U.S. and China, domestic conglomerates are sparing no investment to secure stable supply chains. This is why SPG, which has excellent mass production capabilities for precision reducers, a core component of collaborative robots, is gaining attention.

This content was produced with the assistance of AI translation services.