[Click eStock] "Seegene, COVID-19 Benefits Expected to Last Longer Than Anticipated"

[Asia Economy Reporter Jihwan Park] KTB Investment & Securities on the 23rd raised its investment opinion to 'Buy' and increased the target price for Seegene from 130,000 KRW to 140,000 KRW, a 7.7% increase, citing expected longer-than-anticipated benefits from the novel coronavirus disease (COVID-19).

Researcher Hayoung Kang of KTB Investment & Securities stated, "Although new cases are declining in Europe and the United States, considering the recent increase in cases in South Korea, South America, and the Middle East, the COVID-19 situation is likely to be prolonged," adding, "In particular, our company has customers evenly distributed worldwide, including South Korea, Europe, Brazil, India, the Middle East, and the United States, so benefits are expected."

Researcher Kang explained that given the trend of COVID-19 resurgence in South Korea and China, there is a high possibility of upward revision in estimated performance due to a second wave in the second half of the year, which is expected to ease valuation burdens.

Second-quarter sales are expected to fall about 20% below both the company's previous estimates and market consensus. This is because the average weekly production volume of COVID-19 test kits in the second quarter was revised downward from around 3 million units to about 2 million units, reflecting raw material supply disruptions and intensified competition due to an increase in suppliers.

Equipment sales are expected to remain strong in the second quarter following the first quarter. It seems possible to sell more than 200 units for two consecutive quarters, and the annual sales target is set at over 500 units.

Researcher Kang explained, "Since equipment sales precede reagent sales, they are expected to significantly contribute to performance after COVID-19."

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