Samsung Biologics, Entering Revaluation Phase [Click e-Stock]

Expectations for Plant Expansion and CDMO Growth

There is analysis suggesting that Samsung Biologics is entering a phase with increased potential for revaluation following its spin-off and relisting.

On December 2, Daol Investment & Securities raised its target price for Samsung Biologics by 53.3% to 2.3 million won, maintaining its "Buy" investment rating, citing these factors. The previous day's closing price was 1,649,000 won.

On November 24, Samsung Biologics and Samsung Epish Holdings were relisted after a spin-off at a 65 to 35 ratio. As of the relisting date, their market capitalizations stood at approximately 82.8 trillion won and 10.9 trillion won, respectively. Although volatility increased due to changes in supply and demand at the start of trading, a stable share price trend is expected following the adjustment.

The cumulative contract manufacturing (CMO) order amount has surpassed 20 billion dollars, with approximately 3.8 billion dollars in new contracts secured this year alone. With revenue from the fifth plant expected to begin next year, growth momentum is anticipated to strengthen. Considering the sixth plant's target to begin operations in 2027, there is a possibility that construction will commence within this year. The U.S. local plant remains under review, and the company is expected to further specify its U.S. market entry strategy going forward.

Strong performance is expected to continue, driven by maximum utilization of the fourth plant and the positive effects of a rising won-dollar exchange rate. This year's standalone results are estimated at 538.4 billion won in revenue and 2.1342 trillion won in operating profit, representing increases of 29.8% and 61.5% year-on-year, respectively. Revenue from the fifth plant is expected to be reflected starting from the second quarter of next year. Lee Jisoo, a researcher at Daol Investment & Securities, explained, "Based on securing the third Bio Campus, the company will expand into new contract development and manufacturing (CDMO) areas such as cell/gene therapies and peptides, laying the foundation for long-term growth."