[Click eStock] "UbioLogics, Surprise with Mass Shipment"

DS Investment & Securities raised the target price for UbioLogics to 16,000 KRW on the 29th, anticipating increased profits due to high-margin products.

Kim Min-jung, a researcher at DS Investment & Securities, stated in a report on the same day, “UbioLogics achieved strong results in the third quarter of this year with sales of 36.2 billion KRW and operating profit of 17 billion KRW, significantly surpassing the consensus sales of 32.5 billion KRW and operating profit of 10.6 billion KRW.” She explained, “This was the result of a large shipment of cholera vaccine supply, which had been delayed earlier in the year, being reflected in the third quarter’s performance.”

She added, “There were four consecutive large-scale order announcements in the third quarter (approximately 8.1 billion KRW on July 12, 8.8 billion KRW on July 31, 5.3 billion KRW on August 23, and 4.5 billion KRW on September 12). Considering the steady demand for the cholera vaccine and the annual supply contract of about 49.33 million doses to UNICEF this year, active orders exceeding the third quarter are expected in the fourth quarter, leading to strong performance.”

Furthermore, she noted, “The high-margin product Ubicol S received national shipment approval on the 4th and is currently being actively shipped. Ubicol S is a new cholera vaccine that increases production yield by nearly 40% compared to the existing Ubicol Plus, which is expected to directly enhance UbioLogics’ profits.”

She also forecasted, “The expanding sales proportion of Ubicol S will significantly contribute to UbioLogics’ profits starting in 2025. Due to delayed competitor entry, the cholera vaccine supply shortage is expected to continue until 2025, with order volumes in 2025 projected to increase by about 20% compared to this year.”

Finally, she said, “UbioLogics obtained WHO PQ certification for the DS facility of its second plant, with a capacity of 33 million doses, in May, greatly expanding production scale. With the expansion of production capacity and the increased sales proportion of high-margin products, performance is expected to grow significantly from next year.”