[Click e Stocks] Samsung Biologics, Full Operation of Plant 3 Expected

[Asia Economy Reporter Junho Hwang] Meritz Securities maintained a buy rating on Samsung Biologics on the 28th and set a target price of 1,000,000 KRW.

Meritz Securities forecasted that the operating leverage effect from the full operation of Plant 3 would begin in earnest, making an operating profit margin close to 30% possible. They also viewed the effects of contract manufacturing for Moderna positively. Although precise profit measurement is difficult, Meritz Securities analyzed that even calculating the unit price at 1 USD per dose for orders in the scale of hundreds of millions of doses would greatly help improve performance.

Samsung Biologics' first-quarter results fell short of market expectations due to regular maintenance of the plant and initial volume recognition from Plant 3 production. Sales amounted to 260.8 billion KRW, an increase of 25.95% compared to the previous year, and operating profit was 74.3 billion KRW, up 18.7% year-on-year.

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