[Click eStock] Seegene 2Q Record-Breaking Earnings Expected... Operating Profit Up 2805% YoY to 134.9 Billion Won
"Due to COVID-19 Awareness, Vaccine and Treatment Development Will Sustain Stable Performance for the Time Being"
![[Click eStock] Seegene 2Q Record-Breaking Earnings Expected... Operating Profit Up 2805% YoY to 134.9 Billion Won](http://www.asiae.co.kr/news/img_view.htm?img=2019010809315265578_1546907512.png)
[Asia Economy Reporter Minwoo Lee] Seegene is expected to record record-breaking performance in the second quarter of this year. It is analyzed that the demand for diagnostic kits will remain steady until the development of treatments and vaccines for COVID-19.
On the 20th, Hanwha Investment & Securities forecasted that Seegene will achieve consolidated sales of 257.2 billion KRW and operating profit of 134.9 billion KRW in the second quarter of this year. Compared to the same period last year, sales increased by 777.7% and operating profit by 2805%. Net profit for the period was estimated at 108.7 billion KRW, a 967.3% increase over the same period. It is truly a 'record-breaking' performance.
The demand for diagnostic kits due to COVID-19 led to the strong performance. Sales from COVID-19 diagnostic kits alone are expected to reach 212 billion KRW. By business segment, diagnostics are estimated at 241.7 billion KRW, equipment at 15.5 billion KRW, and others at 7.3 billion KRW. These represent increases of 1071.5%, 78.7%, and 33.5% respectively compared to the same period last year.
Researcher Jaehun Shin of Hanwha Investment & Securities explained, "Although the performance of diagnostic kit companies is expected to increase sharply due to COVID-19, growth may be limited depending on the possibility of developing treatments and vaccines. However, considering that vigilance against COVID-19 will not easily disappear even after treatments and vaccines are developed, Seegene's performance is expected to remain steady."
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Against this backdrop, Hanwha Investment & Securities maintained a 'Buy' rating on Seegene and raised the target price from 150,000 KRW to 250,000 KRW. The closing price on the previous trading day was 175,500 KRW.
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