[Click eStock] "SC Engi, EPC Business Booming · Cellontech Launches Katizol"

[Asia Economy Reporter Hyungsoo Park] KB Securities analyzed on the 29th that S&C Engineering is expected to experience full-scale growth with a boom in orders for its core plant EPC business and the launch of Cellontech's bio-collagen-based joint cartilage treatment 'Katizol'. No investment opinion or target price was provided.

Researchers Im Clinicalguk and Yoon Changbae of KB Securities explained, "Coupled with the expansion of facility investment in the domestic petrochemical and specialty gas sectors, orders worth 100 billion KRW were achieved in the first half of the year alone," adding, "We believe the trend of increasing orders will continue through 2023."

They further predicted, "If orders in the precision chemical and semiconductor materials sectors continue, approximately 200 billion KRW of new orders could be possible this year."

Regarding the subsidiary Cellontech, they introduced, "Katizol, launched in June, is a treatment that administers bio-collagen, a component of the joint, into the joint cavity," and added, "Compared to competing products, it allows patients to choose treatment duration and has proven cartilage tissue regeneration effects through domestic approved clinical trials." They also stated, "We expect sales growth due to accelerated supply to tertiary general hospitals and expansion of the new bio-collagen production plant."

Researcher Im analyzed, "The EPC business has a business structure sensitive to the upstream industry economy," and emphasized, "Whether there is a real expansion of facility investment in energy sectors such as petrochemicals and specialty gases is important."

He continued, "Katizol, an intra-articular injection officially launched in June 2021, is a latecomer," and stressed, "It is important to secure a meaningful market share compared to existing competing products such as HA (Hyaluronic Acid) and PN (Salmon Reproductive Cells) and to expand supply to general hospitals."

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