SK Bioscience, Target Price Lowered to 290,000 Won

[Asia Economy Reporter Park So-yeon] Hana Financial Investment maintains a 'Buy' rating on SK Bioscience and has lowered the target price to 290,000 KRW.

According to FN Guide on the 22nd, Hana Financial Investment stated in a recent report on SK Bioscience that it adjusted the company's enterprise value from the previous 18.5 trillion KRW to 17.1 trillion KRW, reflecting a decline in target multiples due to stock price fluctuations of global CMO competitors and changes in earnings estimates.

However, it added that the target price could be raised depending on the supply contracts for the COVID-19 Novavax vaccine to Thailand and Vietnam, as well as individual country supply contracts for GBP510.

Regarding the fourth-quarter results of last year, it forecasted a record-high quarterly performance.

On a consolidated basis, it is expected to record sales of 525.7 billion KRW and operating profit of 252.8 billion KRW in the fourth quarter, in line with consensus estimates (sales of 531.4 billion KRW, operating profit of 262.4 billion KRW).

Sales in the CMO division are expected to reach 117 billion KRW, and Novavax vaccine sales are projected at 374.2 billion KRW, reflecting government supply of the raw material.

For 2022, sales are expected to reach 1.9405 trillion KRW and operating profit 838 billion KRW. Even excluding the uncertain individual supply contracts for GBP510, sales are estimated at 1.2975 trillion KRW.