[Click eStock] "Seegene Expected to Achieve Record-High Q2 Earnings"

Hana Financial Investment Report "Top Pick Among Diagnosed Companies"
Q2 Operating Profit Expected to Increase 3200% Year-on-Year

[Asia Economy Reporter Minji Lee] Hana Financial Investment on the 8th expressed expectations for Seegene to achieve its highest-ever performance in the second quarter, recommending a buy rating and raising the target price by 33% from the previous level to 200,000 KRW.

Seegene's second-quarter sales are estimated to reach 255.7 billion KRW, a 773% increase year-on-year on a consolidated basis, and operating profit is expected to record 154 billion KRW, a 3200% increase. According to customs clearance data from Songpa-gu, where Seegene is located, exports amounted to 53.36 million USD in April and 48.96 million USD in May. Additionally, equipment supplied by Bio-Rad and sold as products is expected to generate sales of a similar scale to the first quarter.

Minjung Sun, a researcher at Hana Financial Investment, said, “Although domestic sales of COVID-19 diagnostic kits decreased in April, sporadic local infections spread, turning into an increasing trend in May and June, which is estimated to have increased the overall sales volume.”

Analyzing export data from TRASS, exports in early June (1st to 10th) amounted to 44.01 million USD, a 13% decrease compared to May (1st to 10th). Considering that there were 4 business days in the first 10 days of May and 8 business days in the same period in June, this is a poor performance. However, export value between June 21st and 30th rose to 81.9 million USD, a 39% increase from the previous month. Researcher Minjung Sun stated, “The significant increase in export value in the last ten days of June was due to a sharp rise in COVID-19 cases in the US and South America,” adding, “Seegene’s export volume has increased since the end of June, raising expectations for July’s export data.”

Seegene is estimated to record an operating profit of 520 billion KRW this year, with an operating profit margin of 61%. As COVID-19 prolongs and the virus mutates, it is judged that it will take more than three years for vaccines and treatments to be developed. Researcher Minjung Sun explained, “The COVID-19 pandemic is not a one-time event but a long-term event lasting more than three years,” and added, “We present Seegene as the top preferred stock among diagnostic companies.”