[Click eStock] "Chong Kun Dang, Focus on Mid- to Long-Term Strategy Changes Rather Than Short-Term Performance"

If Mid- to Long-Term Strategy Changes Occur, Corporate Value Level-Up
Timing Expected Between Second Half of 2024 and Mid-2025

On the 20th, Eugene Investment & Securities analyzed that it is time to focus on the mid- to long-term strategic changes rather than short-term performance momentum for Chong Kun Dang. The investment opinion 'Buy' and the target price of 150,000 KRW were maintained. Chong Kun Dang's closing price on the previous trading day was 108,500 KRW.

Researcher Kwon Hae-soon of Eugene Investment & Securities stated, "Chong Kun Dang's expected sales for 2024 are 1.56 trillion KRW," adding, "The decrease in K-CAB sales (about 140 billion KRW) can be offset by balanced sales growth of key products such as Godeks, Fexuclu co-marketing, and Prolia." He also mentioned that the top-selling products are growing evenly and that rapid new product launches are being conducted in a timely manner.

Chong Kun Dang's expected operating profit for 2024 is 112 billion KRW. Researcher Kwon said, "We focus on mid- to long-term strategic changes rather than short-term performance momentum," and added, "After technology transfer to Novartis, the company is strengthening its new drug development pipeline capabilities, with domestic Phase 1 clinical trials for bispecific antibodies and preclinical trials for ADC ongoing." Initial clinical results are expected to be confirmed in 2025. For this reason, the corporate value of Chong Kun Dang is expected to become clear between the second half of 2024 and 2025.

Researcher Kwon identified Chong Kun Dang's challenges as ▲ active investment for sustainable growth ▲ utilization plan for available funds of 300 billion KRW after technology transfer ▲ transition from competition to a cooperative win-win relationship.