Celltrion Brothers Soar Stock Price with Share Buyback

Announcement of KRW 150 Billion Treasury Stock Acquisition
CELLTRION Recovers 10th Place in Market Cap
Healthcare Also Rises for 3 Consecutive Days

[Asia Economy Reporter Song Hwajeong] After repeated sluggishness last year, Celltrion and Celltrion Healthcare have hit bottom and started to gain momentum. Attention is focused on whether they can continue the rebound phase created by the decision to repurchase treasury shares.

According to the Korea Exchange on the 12th, Celltrion and Celltrion Healthcare closed up more than 5% and 6%, respectively, the previous day, showing a three-day consecutive rise. Both stocks recorded a 52-week low during trading on the 6th and then successfully rebounded together. Concerns grew that last year's sluggishness might continue this year as new lows were recorded from the beginning of the year, but they hit bottom and started to rebound.

Celltrion recorded a new low last week, dropping its KOSPI market capitalization ranking to 13th, but it reclaimed the 10th position. With the news of the treasury stock repurchase, the stock price rose sharply for three consecutive days. On the 10th, Celltrion and Celltrion Healthcare announced that they decided to acquire treasury shares worth approximately 100 billion KRW and 50 billion KRW, respectively. This is aimed at stabilizing the stock price and enhancing shareholder value, and both companies plan to buy shares on the market until April 10.

This treasury stock repurchase is a measure to overcome the stock price slump that continued last year. After reaching a 52-week high at the beginning of last year, Celltrion and Celltrion Healthcare have been on a downward path. Celltrion's stock price rose to 390,000 KRW intraday on January 13 last year but fell to the 190,000 KRW range within a year, nearly halving. Celltrion Healthcare also rose to the 170,000 KRW range a year ago but recently dropped to the 80,000 KRW range, about half the previous level. Last year's poor performance, accounting audit issues, and COVID-19 oral treatment development hindered the stock price.

Performance is expected to improve this year. The market consensus for the fourth quarter of last year is already being revised upward. According to financial information provider FnGuide, Celltrion's operating profit consensus for the fourth quarter of last year is 222.2 billion KRW, a 34.89% increase compared to the same period last year. This figure was revised upward by 2.24% compared to a month ago. Celltrion Healthcare's operating profit consensus is 81.7 billion KRW. Although this is a 10.98% decrease compared to the same period last year, it was revised upward by 15.83% compared to a month ago, indicating better-than-expected performance. Seogeunhee, a researcher at Samsung Securities, said, "Celltrion Healthcare's performance this year is expected to see sales increase by 9.1% to 1.9568 trillion KRW and operating profit rise by 42.4% to 290.9 billion KRW compared to last year," adding, "After a difficult 2021, biosimilars are expected to achieve stable growth this year due to price stabilization and the effects of new products."

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