[Asia Economy Reporter Son Sunhee] Kiwoom Securities announced on the 9th that it maintains a 'Buy' investment rating and a target price of 1,100,000 KRW for Samsung Biologics.
Samsung Biologics' Q4 revenue last year is estimated at 767.9 billion KRW, a 73% increase compared to the same period last year. Operating profit for the same period also rose 93% to 248.4 billion KRW. This is slightly below market estimates.
However, Kiwoom Securities explained that this level of performance was already anticipated. Researcher Heo Hyemin of Kiwoom Securities said, "The exchange rate at the end of Q4 was 1,267.3 KRW, down 11% from 1,419.3 KRW at the end of Q3 (last year), so fluctuations are expected depending on the exchange rate at the time of customer approval." He added, "However, the average exchange rate in Q4 was 1,359.26 KRW, up 15% year-on-year and 2% quarter-on-quarter, which was generally favorable. The exchange rate remains the biggest variable this year."
Researcher Heo also noted, "Although Samsung Bioepis' milestones may be fewer than last year, the full-year sales of Lucentis and the launch of Humira biosimilar at the end of June are positive factors." He explained, "In Q2 last year, Plant 2 operated at only 50% capacity due to maintenance, but full operation is possible this year." He further added, "In the past, orders were secured after plant expansion, but for the current Plant 4, it is expected that the remaining 180,000-liter expansion will be completed by mid-year, securing orders and leading to the construction of Plant 5. This indicates a significantly faster pace in solidifying its position in the antibody CMO industry compared to before."
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