[Click eStock] "Samsung Biologics, Target Price Maintained at 1 Million Won"

On the 25th, Samsung Securities maintained a target price of 1,000,000 KRW and a buy rating for Samsung Biologics.

It is expected to achieve consolidated sales of 1.1569 trillion KRW, operating profit of 434.5 billion KRW, and net profit attributable to controlling shareholders of 318 billion KRW in 2024. Due to the increased operating rate of the 4th plant, standalone sales are expected to reach 810.2 billion KRW and operating profit 329.2 billion KRW. Despite an increase in internal transaction sales, consolidated strong performance is anticipated as Samsung Bioepis receives a milestone payment of 220.5 billion KRW following the approval of biosimilar SB15 and SB17 products. Samsung Bioepis is expected to record sales of 529.9 billion KRW and operating profit of 257.1 billion KRW. Consolidated sales are projected at 4.2124 trillion KRW with operating profit of 1.2712 trillion KRW. Growth is expected to continue in the second half of the year due to the won-dollar exchange rate effect, increased operating rate of the 4th plant, and milestone receipts from the European approval of Samsung Bioepis SB15 products.

Recently, a large-scale contract manufacturing organization (CMO) agreement worth 1 billion USD was signed with a US-based pharmaceutical company. The cumulative contract amount from January to July reached 2.1 billion USD, reflecting the trend of increasing CMO production share by global pharmaceutical companies and reaffirming Samsung Biologics’ position in the CMO industry. Development of new antibody drugs continues to expand. In particular, demand for antibody drug production is expected to continue increasing in fields such as ADC-based anticancer drugs, immuno-oncology drugs, autoimmune disease treatments, and CNS therapeutics. Seogeunhee, a researcher at Samsung Securities, stated, “The US Biosecure Act, with the recent promise by the Speaker of the House to pass it within the year, increases the likelihood of sanctions on Chinese CDMOs, leading to increased inquiries for orders at Samsung Biologics. This is expected to be positive for the medium- to long-term performance growth of the CDMO business.”