[Click eStock] "Samsung Biologics, Target Price Maintained at 1.3 Million Won"

On the 8th, KB Securities maintained its investment opinion of "Buy" and a target price of 1.3 million KRW for Samsung Biologics.

Based on consolidated results, the estimated performance for the last quarter was sales of 1.1383 trillion KRW and an operating profit of 310.9 billion KRW. Although the ongoing strong dollar exchange rate suggested potential benefits, considering that the exchange rate affects the entire quarter, the impact is expected to be limited.

Additionally, for Samsung Biologics, the 180,000-liter capacity of Plant 4 entered the initial ramp-up phase starting from the fourth quarter of last year. Since sales related to products with high cost of goods sold occurred in that quarter during the first half of the year, it is judged that there will be a temporary impact on operating profit.

However, this impact is expected to normalize as the 180,000-liter capacity utilization rate increases. Also, regarding Epis, considering that the remaining annual milestones related to the Aelia biosimilar will be reflected in the fourth quarter, there is no cause for concern.

Although the anticipated enactment of the US-China Biosecurity Law within 2024 did not materialize, it is judged that, as part of the potential US-China trade conflicts that may be re-highlighted after Trump's inauguration on January 20, it remains a point of attention from a mid- to long-term perspective.