[Click e-Stock] "SG, Stable Quarterly Earnings Growth... Focus on Fundamental Improvement Momentum"

On September 24, SK Securities projected that SG would maintain a stable trajectory of quarterly earnings growth through the end of the year, following a turnaround in quarterly performance that began in the second quarter.

Heo Seonjae, a researcher at SK Securities, stated, "From this year, SG has begun to see a full-fledged improvement in performance, driven by revenue recognition from 200 billion won worth of government asphalt concrete (ascon) orders secured last year and the expansion of orders for its self-developed air pollution prevention equipment, SGR+." He explained, "SGR+ is a representative solution that meets legal standards at a time when domestic asphalt concrete manufacturers are required to install air pollution reduction devices."

SG commercialized SGR+ last year, leveraging its experience in operating its own plants and making large-scale investments. The installation rate of the required equipment at approximately 800 asphalt concrete plants nationwide is around 5%. The potential market size is estimated at about 300 billion won. Starting next year, the company also plans to actively pursue overseas exports, focusing on emerging markets where environmental regulations are expected to tighten.

Heo added, "The India project is also expected to see concrete business plans materialize in the fourth quarter." He continued, "SG has signed a memorandum of understanding (MOU) with Ashoka Buildcon, a local construction company in India, and the Rajasthan state government to participate in the construction of nine highways and national roads totaling approximately 16,000 kilometers in Rajasthan."

He further stated, "On September 12, SG successfully completed a test paving of Eco Steel Ascon in Ukraine, demonstrating its technological capabilities and construction stability." He added, "Revenue recognition from the 35 billion won order secured last year, as well as new orders, will begin in earnest after a ceasefire or the end of the war."

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