Seegene Anticipates 'Earnings Surprise' in Q1

Q1 Revenue Estimated at 50.6 Billion KRW, Operating Profit at 17 Billion KRW... Up 84.2% and 193.4% Year-on-Year

Seegene's respiratory infection test product 'Allplex' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has emerged predicting that Seegene's first-quarter performance this year will be an 'earnings surprise.'

According to Mirae Asset Daewoo on the 21st, Seegene's first-quarter sales this year are estimated at 50.6 billion KRW, with an operating profit of 17 billion KRW. These figures represent increases of 84.2% and 193.4%, respectively, compared to the previous year. This is due to expectations that respiratory products will see significant growth amid the COVID-19 pandemic.

Seegene is accelerating market penetration with its outstanding technological capabilities. Kim Choonghyun, a researcher at Mirae Asset Daewoo, stated, "Seegene possesses unique technology worldwide that enables simultaneous multiplex quantitative testing based on three core technologies. They are creating a market by replacing traditional testing methods (culture tests) with molecular diagnostic methods for products such as human papillomavirus (HPV) tests and gastrointestinal test products." He added, "Since the end of 2018, Seegene has demonstrated its technological prowess by achieving results in highly competitive bidding markets (Israel, France, etc.). As a result, the proportion of sales in Europe, a market difficult for domestic companies to enter, has steadily increased from 19.8% in 2011 to 57.3% last year."

The benefits from the COVID-19 situation cannot be overlooked. As the pandemic prolongs and global demand for diagnostic kits rises, competition has intensified. PCR testing requires specialized equipment and trained personnel, so Seegene, which already has many existing clients, is considered to have an advantage over attracting new customers.

Researcher Kim said, "Seegene's main markets?Korea, Italy, France, Germany, and Spain?are regions with high numbers of COVID-19 cases, which is positive." He also noted, "The United States is currently undergoing approval procedures, so expectations remain valid."

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