[Click eStock] Seegene 2Q Operating Profit Expected at 170 Billion KRW... 35000% Increase YoY

Good Performance Expected in Q3 Despite COVID-19 Resurgence

[Asia Economy Reporter Minwoo Lee] Seegene is expected to achieve its highest quarterly performance ever in the second quarter of this year. This is because the sales of diagnostic kits during the period when the novel coronavirus infection (COVID-19) began to spread in earnest have been reflected. Due to the resurgence of COVID-19, strong performance is also expected in the second half of the year.

On the 10th, SK Securities forecast that Seegene will record sales of 265.6 billion KRW and an operating profit of 169.1 billion KRW in the second quarter of this year. Compared to the same period last year, sales are expected to increase by 806.5%, and operating profit by 3542.8%. This is expected to be the highest quarterly performance ever.

This is believed to be because sales of COVID-19 diagnostic kits, which recorded 29 billion KRW in the first quarter, began to increase significantly from the second quarter. Since the highly profitable COVID-19 diagnostic kits are experiencing rapid growth, the operating profit margin has also improved significantly.

Strong performance is also expected in the third quarter. SK Securities researcher Dalmi Lee said, "Although sales growth may slow down during the third quarter off-season after peaking in the second quarter, considering that a new product with improved accuracy was released and sales have been generated in earnest since the end of last month, as well as the autumn resurgence of COVID-19, the growth trend is expected to continue until next year." She added, "In particular, although not yet at a significant level, export volumes are gradually increasing due to the rise in confirmed cases in the United States, and unlike other competitors who face price declines due to intensified competition, Seegene still maintains its existing prices, which is its greatest competitive advantage."

Accordingly, SK Securities maintained a 'Buy' investment rating on Seegene and raised the target stock price to 200,000 KRW. The closing price on the previous day was 149,600 KRW.