[Featured Stocks] Bio Sector Rebound Expected Amid COVID-19 Resurgence... Celltrion Trio Shows Strong Gains Together

[Asia Economy Reporter Ji Yeon-jin] Celltrion group stocks are showing strong performance during trading on the 5th amid daily COVID-19 cases exceeding 100,000, fueled by expectations of improved earnings in the second half of the year.

As of 9:25 a.m. on the same day, Celltrion was trading at 197,000 KRW, up 4.23% (8,000 KRW) from the previous day. At the same time, Celltrion Healthcare rose 4.97% (3,600 KRW) to 76,100 KRW, and Celltrion Pharm was trading at 87,800 KRW, marking a 4.03% increase.

Domestic COVID-19 cases have exceeded 100,000 for four consecutive days since the 1st. In particular, the expectation that domestic bio stocks will rebound in the second half appears to have driven these stock prices upward.

Lee Dong-geon, a researcher at Shinhan Financial Investment, stated in a report released on the day, “Large domestic bio stocks are recording a meaningful rebound starting in the second half,” and analyzed, “Since the end of May, the momentum of capital inflow into large bio stocks has strengthened.”

Lee said that based on second-quarter earnings, significant quarterly earnings growth is expected for Celltrion and Celltrion Healthcare. He added, “An upward revision of the 12-month forward earnings per share (EPS) and stock price increase for Celltrion Healthcare is expected, driven by the full-scale high growth of European Remsima SC sales. Also, Samsung Biologics is expected to continue its earnings growth in the second half, recovering from a low point in the second quarter caused by regular maintenance of Plant 2, while pre-orders are actively progressing ahead of partial operation of Plant 4.”