[Click eStock] "Samsung Bio achieves surprise earnings... Improvement expected this year"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 530,000 KRW... Closing Price on 22nd at 452,000 KRW

[Asia Economy Reporter Kum Boryeong] Samsung Biologics has achieved surprising earnings, and an analysis suggests improvement is expected this year.

According to Daishin Securities on the 23rd, Samsung Biologics recorded sales of 313.3 billion KRW and operating profit of 106.9 billion KRW in the fourth quarter of last year. These figures represent increases of 75.7% and 829.6%, respectively, compared to the previous year.

Hong Gahye, a researcher at Daishin Securities, explained, "Sales increased due to a focus on producing high-priced products and improved factory operating rates, with the rise in operating rate of the second plant particularly driving sales growth. Production performance reflected operating rates of 50% for the first plant, 70% for the second plant, and mid-10% range for the third plant." She added, "Operating profit greatly improved due to increased sales and changes in product mix."

Performance improvement is expected to continue this year as well. This is because the growth phase is anticipated due to increased factory operating rates. Daishin Securities forecasts Samsung Biologics' sales and operating profit this year to rise by 29.9% and 96.4% year-on-year, reaching 911.4 billion KRW and 180 billion KRW, respectively.

Expectations for mid- to long-term order expansion are also increasing. Researcher Hong said, "The U.S. FDA approval process for Biogen's Alzheimer's treatment Aducanumab is underway." She added, "According to Samsung Biologics, commercialization of the Alzheimer's treatment will generate an annual demand of over 40 tons of antibody drugs. This exceeds more than twice the production capacity of the company's third plant, which is the largest scale globally. Expectations for securing large-scale orders and expanding production facilities are being drawn."

Daishin Securities has given a 'Buy' investment rating for Samsung Biologics. The target stock price has been raised from the previous 440,000 KRW to 530,000 KRW. The closing price on the 22nd was 452,000 KRW.

This content was produced with the assistance of AI translation services.