[Click eStock] "Larger-than-Expected 4th Plant... Samsung Biologics to Reach 1 Million Won"

Announcement of Plan to Build the World's Largest Production Facility
"An Expression of Confidence in Orders"... Expectations for Future Performance Improvement↑

Incheon Songdo Samsung Biologics Factory Panorama (Source=Samsung Biologics)

[Asia Economy Reporter Minwoo Lee] The target price for Samsung Biologics has been raised to 1 million KRW. This is because the scale of the newly constructed factory is larger than expected, and future estimated performance is expected to improve significantly.

On the 12th, KTB Investment & Securities maintained a 'Buy' rating on Samsung Biologics and raised the target price by 5.3% to 1 million KRW. The closing price the previous day was 804,000 KRW. This is due to the announcement of plans to establish the world's largest production facility the day before, raising expectations for improved future performance.

The day before, Samsung Biologics held an online press conference and announced the expansion of its 4th plant in Songdo, Incheon. With a production capacity of 256,000 liters, it is the largest in the world. It is 42% larger than Samsung Biologics' 3rd plant (180,000 liters), which is currently the world's largest single-factory production facility. The total floor area is approximately 238,000 square meters (㎡), comparable to the combined floor area of the 1st, 2nd, and 3rd plants, which is 240,000㎡. It is about 1.5 times the size of the Sangam World Cup Stadium.

The 4th plant is planned to be built as the world's most efficient eco-friendly biopharmaceutical factory, applying cutting-edge equipment and automation technology. The groundbreaking ceremony is scheduled for the second half of this year, and partial production is expected to begin by the end of 2022. Once the 4th plant is operational, Samsung Biologics' production capacity will reach 620,000 liters, accounting for about 30% of the global contract manufacturing organization (CMO) scale.

Researcher Hayoung Kang of KTB Investment & Securities explained, "This new plant construction is a proactive response to the increase in biopharmaceutical outsourcing, the global demand surge caused by the COVID-19 pandemic, and the intensified shortage of production facilities due to the improved likelihood of blockbuster new drug development such as Alzheimer's." He added, "The decision to start construction on a larger scale than market expectations can also be interpreted as confidence in securing orders." He continued, "From 2024 to 2029, combined sales from the 4th plant are expected to reach 1.5 trillion KRW, with total sales and operating profit increasing by 9% and 11% respectively during this period." He further noted, "Long-term estimated performance is expected to rise after 2024, and the CMO market value will reach 56 trillion KRW."

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