[Click eStock] "Samsung Biologics Benefits from COVID-19 Treatment Clinical Trials... Target Price Up"

[Asia Economy Reporter Park Jihwan] NH Investment & Securities maintained a 'Buy' rating on Samsung Biologics on the 21st, citing expected benefits from clinical trials of COVID-19 treatments, and raised the target price by 3.17% from the previous 630,000 KRW to 650,000 KRW.

Researcher Koo Wan-sung of NH Investment & Securities stated, "Samsung Biologics recorded consolidated sales of 207.2 billion KRW and operating profit of 62.6 billion KRW in the first quarter, with sales in line with our estimates and operating profit exceeding expectations. Due to reduced external activities caused by COVID-19, selling and administrative expenses decreased by 600 million KRW compared to the previous quarter, totaling 24.5 billion KRW."

Researcher Koo added, "Annual sales for this year are estimated at 991.7 billion KRW, and operating profit at 265.4 billion KRW, representing increases of 41.4% and 189.3% respectively compared to the previous year. The launch of SB3 (Herceptin biosimilar) in the U.S. in the first half and SB8 (Avastin biosimilar) in the U.S. and Europe in the second half are highly anticipated." He also noted that significant growth in equity-method income is expected due to the continued strong performance of the subsidiary Samsung Bioepis.

In particular, following the fourth quarter of last year, the maintenance of a gross profit margin around 40% is leading to a leverage effect due to increased operating rates.

Researcher Koo emphasized, "With the recent 440 billion KRW antibody supply contract for COVID-19 treatment signed with Vir Biotechnology, the order target for the third plant this year has been achieved early by 60%."

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