[Click eStock] "SK to Be Noted as an Alternative to SK Biopharm"

Hana Financial Investment Report, Target Price Maintained at 320,000 KRW
Improved Investor Sentiment for Samsung C&T During Samsung Biologics IPO

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained a buy rating on SK on the 15th and set a target price of 320,000 KRW. This is based on the judgment that the heightened expectations for SK Biopharm's listing on the domestic stock market could serve as a significant opportunity for SK to improve its supply and demand conditions.

When a high-quality unlisted subsidiary goes public, it is common for the holding company’s stock price to temporarily weaken due to increased selling by the holding company and buying by the listed subsidiary. However, considering the situation during Samsung Biologics’ listing, SK Biopharm’s listing is actually positive for SK.

Jungwook Choi, a researcher at Hana Financial Investment, said, “Samsung Biologics was a stock that sparked overvaluation controversy among investors, and with only 20% of its shares being publicly traded, Samsung C&T, which has less valuation pressure, was also noted as an alternative.”

SK Biopharm is a new drug development specialist targeting central nervous system diseases and holds two FDA-approved new drugs. As seen in the Cenobamate case, it independently conducted late-stage clinical trials and possesses independent marketing capabilities in the US and other global markets. It is set to become a global integrated pharmaceutical company with the entire value chain from new drug development to production and marketing. The company’s enterprise value is at least 6.1 trillion KRW, while based on the public offering band (36,000 to 49,000 KRW), the enterprise value is estimated to be between 2.8 trillion and 3.8 trillion KRW.

Researcher Choi said, “Interest from domestic and foreign institutional investors is expected to be very high, but the allocation of shares to institutional investors is about 15%. Given the allocation, there is a high possibility of lock-up, so the number of publicly traded shares will be only about 5% in the early stages of listing.” He added, “This environment inevitably leads to a transfer of supply and demand to SK, and investment sentiment toward SK will continue to improve until SK Biopharm finds an appropriate valuation after listing.”

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