[Click eStock] "Dong-A Socio Holdings, Expecting Growth in Dong-A Pharmaceutical and STGen Bio"

[Asia Economy Reporter Lee Jung-yoon] Shinhan Financial Investment maintained a buy rating and a target price of 150,000 won on the 24th for Dong-A Socio Holdings, expecting performance growth from Dong-A Pharmaceutical and STGen Bio, which are serving as cash cows for the group this year.

Dong-A Socio Holdings reported consolidated sales of 881.9 billion won last year, up 12.6% year-on-year, and operating profit of 61.6 billion won, up 21.7%. In particular, the fourth-quarter results last year showed increased pre-purchase sales of Bacchus due to supply price hikes. STGen Bio recorded its highest quarterly sales of 20 billion won, which was reflected in the consolidated results from the fourth quarter.

This year, Dong-A Socio Holdings' consolidated sales are estimated to increase by 11.5% to 983.5 billion won, and operating profit is expected to rise 33.5% to 82.2 billion won. Jang Se-hoon, a researcher at Shinhan Financial Investment, said, "The effect of the Bacchus supply price increase is expected to be fully realized, and sales of cold medicines Panpyrin and Champ are expected to increase due to the recent surge in Omicron variant cases." He added, "Growth of the health functional food brand Orthomol is also anticipated."

He continued, "STGen Bio, which succeeded in turning a profit in the third quarter last year, is expected to turn around for the full year 2022 as it is anticipated to produce phase 3 samples of biosimilars for other companies." He added, "As a holding company with a stable performance base and revaluation points, it is expected to provide downside support for the stock price despite increased market volatility."

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