[Featured Stock] SC Engineering: Strong Performance in Core Business and New Ventures... 'Bullish'

[Asia Economy Reporter Yoo Hyun-seok] S.C. Engineering is showing strong performance. It appears that securities firms' analysis highlighting both the turnaround in its core business and the growth potential of its bio business has had an impact.

As of 9:23 AM on the 7th, S.C. Engineering was trading at 5,340 KRW, up 4.09% (210 KRW) compared to the previous trading day.

S.C. Engineering is a small to medium-sized EPC specialist company with 50 years of experience, capable of securing various plant EPC orders in the chemical and energy sectors. Although it recorded sluggish order performance during 2019-2020 when COVID-19 spread, from this year, investments in petrochemical and specialty gas facilities have revived, achieving approximately 100 billion KRW in orders in the first half of the year. Considering the order cycle of the upstream industries, annual new orders are expected to show a significant turnaround from 65.4 billion KRW last year to around 200 billion KRW this year.

The company plans to acquire a 51% stake in Cellontech, a regenerative medicine specialist company, from Sewon ENC for 17.1 billion KRW. Cellontech is a company engaged in bio-collagen-based regenerative therapeutic medical devices and cell therapy. Cartizol has various advantages compared to existing intra-articular injection drugs such as HA and PN.

Collagen is one of the components within joints, and the surface layer of human cartilage tissue is composed of collagen. Bio-collagen Cartizol, which is similar to human collagen, supplements and coats damaged joint cartilage tissue, alleviating pain and shock while supporting the natural healing process.

Kim Jae-yoon, a researcher at KTB Investment & Securities, said, “Since its launch in June, supply has started to six general hospitals, and supply procedures are underway at four tertiary general hospitals in the Seoul and Gyeonggi regions. Considering the current supply trend, sales from Cartizol alone are expected to reach approximately 5.5 billion KRW this year.”