[Click e-Stock] Samsung Biologics 'All Plants Running at Full Capacity'

On October 15, Yuanta Securities stated that all plants of Samsung Biologics are operating at full capacity and are expected to maintain stable sales in the fourth quarter. The brokerage maintained its 'Buy' investment rating and target price of 1.3 million won.

According to Yuanta Securities, Samsung Biologics' consolidated financial statements are expected to show third-quarter sales of 1.609 trillion won, up 35.5% year-on-year, and operating profit of 512.8 billion won, up 51.4%. The operating margin is projected at 31.9%. The third-quarter results are anticipated to be in line with existing securities firms' consensus. On a separate financial statement basis, sales are expected to reach 1.2465 trillion won (up 16.8% year-on-year), operating profit 548.4 billion won (up 23.3%), and an operating margin of 44.0%.

Ha Hyunsoo, an analyst at Yuanta Securities, commented, "With all four plants running at full capacity, stable sales are expected to continue in the fourth quarter. If the sharp rise in the won-dollar exchange rate seen in October persists, we can also expect positive foreign exchange effects in the fourth quarter."

Samsung Biologics has previously faced concerns over its order competitiveness due to the Trump administration's pharmaceutical tariffs and the lack of production facilities in the United States. Analyst Ha Hyunsoo noted, "By signing a large-scale order contract worth about 1.3 billion dollars with a US-based pharmaceutical company in early September, Samsung Biologics has reaffirmed its strong competitiveness. Despite tariff uncertainties, this is considered to be driven by strong demand for large-scale CDMO providers."

Meanwhile, amid ongoing US-China tensions, the US Congress is pushing the Biosecurity Act, which has been included in the Senate's National Defense Authorization Act (NDAA) amendment. A unified bill is expected to be produced through coordination with the House-passed NDAA. Unlike last year's bill, the new version does not specify companies, but instead establishes procedures for designating companies of concern and for filing objections. In addition, companies included in the 1260H list of restricted and sanctioned entities compiled by the Department of Defense will automatically be classified as companies of concern. In this case, Wuxi Biologics, a major competitor of Samsung Biologics, is not currently on the 1260H list, but there remains a possibility that it could be added as a company of concern in the future.