[Click eStock] "Dong-A Socio Holdings, Unlisted Subsidiary Performance Up... Target Price Maintained"

Sangsangin Securities maintained a buy rating and a target price of 150,000 KRW on June 3 for Dong-A Socio Holdings, stating that "the operating performance of its 100% subsidiary Dong-A Pharmaceutical is steadily growing, and STGen Bio, which was a deficit company, is turning to operating profit." The previous trading day's closing price was 100,900 KRW.

On the same day, researcher Ha Taegi of Sangsangin Securities said, "Most of the corporate value comes from the value of subsidiary shares, especially the value of unlisted subsidiaries."

Regarding Dong-A Pharmaceutical, researcher Ha said, "Bacchus is growing steadily due to increased sales volume and price hikes. General medicines such as Noscana are also growing, mainly in topical skin treatments," adding, "In particular, the vitamin supplement Orthomol and the cosmetics of the Pation brand are experiencing high growth. Profitability is also good. Operating profit margin is maintained at around 12% due to growth in high-margin products."

About STGen Bio, he explained, "With increased commercial production volume of Nesp biosimilars and the addition of Stelara biosimilar commercial production, sales this year are expected to reach 65 billion KRW, with a possible turnaround to operating profit," adding, "From next year, sales growth could accelerate, and if sales increase significantly, Dong-A Socio Holdings can also receive meaningful running royalties under the contract."

Other subsidiaries are also showing growth. Researcher Ha added, "Yongma Logistics is steadily and stably increasing sales through the expansion of the Anseong new hub center, and Dongcheon Water is steadily increasing sales through facility expansion and the addition of beverage business."