[Click eStock] "Green Cross Falls Short of Q2 Earnings Expectations... Target Price Down 4.3%"

[Asia Economy Reporter Ji-hwan Park] Daishin Securities announced on the 16th that it expects the second-quarter earnings of Green Cross to fall short of expectations this year. While maintaining a 'Buy' investment rating, the target price has been lowered by 4.3% to 440,000 KRW.

Researcher Yunjin Lim of Daishin Securities stated, "The consolidated sales for the second quarter are estimated at 379.3 billion KRW, a 5.4% increase year-on-year, and operating profit is expected to rise by 19.5% to 18.7 billion KRW." This forecast is below the previous operating profit estimate of 27.6 billion KRW and the market consensus of 29.2 billion KRW. The shortfall is attributed to increased selling, general and administrative expenses, including research and development, advertising, and commission fees.

However, sales and operating profit for the third quarter are projected to increase by 12.6% and 29.4% year-on-year, reaching 472.6 billion KRW and 65.7 billion KRW, respectively. Strong performance growth is expected due to expanded supply of Moderna COVID-19 vaccines and increased domestic market share of influenza vaccines. Annual operating profit is also anticipated to grow by 107% year-on-year, reflecting an upward revision of operating profit estimates for approximately 39.95 million doses of Moderna COVID-19 vaccines supplied domestically in the second half of the year.

Researcher Lim added, "Although the main contract with the Coalition for Epidemic Preparedness Innovations (CEPI) has been delayed more than expected, considering the slow supply of COVID vaccines through COVAX, the possibility of signing the main contract remains valid." She further noted, "Discussions regarding production schedules and confirmed quantities are ongoing, so the value of CMO (Contract Manufacturing Organization) remains intact."

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