[Click eStock] "Celltrion Healthcare, Strong Performance in Q3... Stock Price Rally Not Yet"

Hana Financial Investment Issues 'Buy' Rating and Sets Target Price at 140,000 Won... Closing Price on 14th at 88,700 Won

[Asia Economy Reporter Kum Boryeong] Although Celltrion Healthcare is expected to deliver solid earnings in the third quarter without disappointing expectations, an immediate sharp rebound in its stock price is unlikely, according to analysis.

On the 15th, Hana Financial Investment estimated that Celltrion Healthcare's third-quarter sales will increase by about 49% year-on-year to 421.4 billion KRW, and operating profit is expected to rise 266% from the previous year to 78 billion KRW. However, the third-quarter operating profit margin is unlikely to reach the level seen in the second quarter. Minjeong Seon, a researcher at Hana Financial Investment, explained, "The remarkable 20.7% operating profit margin in the second quarter was due to Truxima for the U.S. market, which has the highest margin rate, accounting for about 36% of total sales, resulting in an unusually high profit margin. However, third-quarter sales of U.S.-bound Truxima are expected to be 113.8 billion KRW, maintaining a similar proportion to other quarters."

Remsima SC, which recorded about 16.4 billion KRW in cumulative sales in the first half of the year, is expected to perform better in the fourth quarter than in the third. Researcher Seon said, "Until the third quarter, the countries where Remsima SC was launched remained the same as in the second quarter? the UK, Germany, and the Netherlands. Although it obtained approval in July for inflammatory bowel disease (IBD), which has the highest prescription ratio, significant sales growth in the third quarter is unlikely. Celltrion Healthcare anticipates launching Remsima SC in Italy, France, and Spain?relatively large markets in Europe?in the fourth quarter, so strong growth is expected from the fourth quarter onward."

Hana Financial Investment gave Celltrion Healthcare a 'Buy' rating with a target price of 140,000 KRW. The closing price on the 14th was 88,700 KRW. Researcher Seon stated, "Although solid earnings are still expected in the third quarter, an immediate sharp rebound in the stock price is difficult to anticipate. The market will likely respond after confirming the concrete growth potential of Remsima SC. If one expects a sharp increase in Remsima SC sales in the fourth quarter, the current price correction presents a good buying opportunity."

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