1. What Happened at SBB Tech?

SBB Tech achieved KRW 3 billion in revenue for H1 2025, an 8.6% increase year-over-year. However, both operating and net income remained negative at KRW -3.8 billion and KRW -4 billion, respectively. Despite positive signs like increased ROBO BEARING utilization and growing overseas sales, overall performance fell short of market expectations.

2. Why the Poor Performance?

A combination of market downturn, R&D expenses, SG&A expenses, stock option costs, and convertible bond valuation losses contributed to the negative results. The increased financial burden due to convertible bond issuance, including the potential for future stock dilution, is a particular concern for investors.

3. What’s Next for SBB Tech?

SBB Tech is focusing on securing future growth engines by expanding its reducer and drive module business and entering overseas markets. The growth of the robotics industry and the increasing demand for domestic component localization in Korea could present opportunities, but improving profitability and managing convertible bond risks are top priorities.

4. What Should Investors Do?

Given SBB Tech’s combined growth potential and financial risks, a cautious investment approach is necessary. Investors should monitor profitability and earnings improvement trends in the short term and closely observe the performance of new businesses and the resolution of convertible bond risks in the long term.