[Click eStock] "Samsung Biologics Begins Benefiting from US Biosecurity Act"

Stunning Value Research analyzed on the 26th that Samsung Biologics is beginning to benefit from the U.S. Biosecurity Act. No investment opinion or target price was provided.

Namgung Jun, a researcher at Stunning Value Research, stated, "Recently, the U.S. House Rules Committee is expected to pass an amendment including the Biosecurity Act in the National Defense Authorization Act within this year." He added, "The Biosecurity Act is a U.S. law aimed at restricting Chinese bio companies, prohibiting U.S. government agencies and companies funded by government budgets from conducting transactions with Chinese bio companies."

He continued, "Considering the impact of the Biosecurity Act, global big pharma companies are looking for contract development and manufacturing organizations (CDMOs) with low risk and stable supply capabilities, so Samsung Biologics is expected to be the biggest beneficiary."

He also emphasized, "The contract amounts of existing orders have increased this year, which is judged to be due to the influence of the Biosecurity Act," and added, "In response to the increased demand, the 5th plant with a capacity of 180,000 liters is under construction in Songdo."

Along with this, he forecasted continued performance growth this year. He said, "With the increased operating rate of the 4th plant, sales and operating profit growth are expected to continue in the second half of the year," emphasizing, "This year's sales and operating profit are expected to be 4.5443 trillion KRW and 1.4042 trillion KRW, respectively, representing increases of 23.0% and 26.1% compared to the previous year."