Market Chooses 'Seegene' in Diagnostic Kit Stock Selection

Exports of Diagnostic Kits Continue to Increase

The temporary screening clinic for the novel coronavirus infection (COVID-19) is operating on the 15th at Yeouido 3rd Parking Lot by the Han River in Seoul (under the southern end of Seogang Bridge). / Photo by Moon Honam munonam@

[Asia Economy Reporter Geum Bo-ryeong] The sorting of the wheat from the chaff in COVID-19 diagnostic kit stocks has entered its final stage.

According to the Korea Customs Service on the 15th, the export amount of diagnostic kits last month was $294.24 million, an increase of 1,299% compared to the previous year. This figure is 23.5% higher than in October. The export amount of diagnostic kits in November surpassed the record high of September ($286.25 million), marking the highest export amount ever recorded.

Seon Min-jeong, a researcher at Hana Financial Investment, said, "Due to seasonal factors, the number of COVID-19 confirmed cases in Europe and the United States is hitting new daily highs, and there is little sign of the spread calming down." She added, "Despite the absence of a base effect in November, the provisional export amount of diagnostic kits until the 10th was $115.95 million, a 13.7% increase compared to the same period last month. If this trend continues, the export amount of diagnostic kits in December is expected to surpass the November figure again."

Although diagnostic kit exports are on the rise, diagnostic kit stocks have mostly declined since September. The closing price of SuzenTech, which was 52,500 KRW on September 18, dropped to 25,300 KRW as of the previous day, a decrease of 51.81% in about three months. During this period, LabGenomics fell 47.53% from 39,450 KRW to 20,700 KRW, and EDGC dropped 36.65% from 15,500 KRW to 9,820 KRW. On the other hand, PCL rose 7.28% from 26,800 KRW to 28,750 KRW.

During the same period, the leading stock Seegene also fell 17.99%, but it showed a different pattern from most diagnostic kit stocks that were trending downward. Since the end of last month, it has been on a sharp rebound. Seegene reached a closing price of 177,600 KRW on the 25th of last month and surged until the previous day, rising 21.9% in three weeks. PCL also rose 24.73%, but EDGC and LabGenomics were in decline.

In particular, Seegene has recently been shining again. Foreign investors bought 45.4 billion KRW worth of Seegene shares over three trading days from the 10th to the previous day. During this period, Seegene was the top net purchase stock by foreign investors in the KOSDAQ market. Its performance is also solid. Seegene attracted market attention by announcing that its annual sales this year exceeded 1 trillion KRW. Last year’s sales were 122 billion KRW. Additionally, to return management performance, the dividend per share, which was 100 KRW last year, is planned to be increased to 1,500 KRW this year.

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