[Click eStock] "Celltrion Healthcare Performance Off-Season... Improvement Expected in Second Half"

[Asia Economy Reporter Myunghwan Lee] Hana Financial Investment announced on the 18th that it is slightly lowering the target price for Celltrion Healthcare from the previous 105,000 KRW to 100,000 KRW due to a downward revision of earnings estimates. However, the investment opinion remains a buy.

Hana Financial Investment explained that the first quarter is traditionally an off-season. Celltrion Healthcare's consolidated sales for the first quarter of this year are expected to reach 405.6 billion KRW, up 13.8% year-on-year, and operating profit is expected to increase by 64.5% to 51.8 billion KRW. Although these estimates have been revised downward, it reflects the seasonal off-season in the first quarter when shipment volumes of major products decrease due to year-end inventory stocking by client companies.

The company’s consolidated sales for this year are projected to increase by 10.3% from last year to 1.9909 trillion KRW, and operating profit is expected to rise by 46.8% to 292.7 billion KRW. Despite a decline in sales of the COVID-19 antibody treatment 'Rekkirona,' growth is expected to be driven by Remsima SC and Uplyma. Operating profit margins, which were sluggish last year due to price reductions of the blood cancer treatment 'Truxima,' are also expected to improve.

Although the target price is lowered due to changes in earnings forecasts, solid performance is expected this year, and the launch of major new products is scheduled for next year and beyond, suggesting a favorable stock price trend. Hana Financial Investment anticipates strong performance for Celltrion Healthcare in the second half of this year, driven by client inventory stocking effects, steady growth of the autoimmune treatment 'Remsima SC,' and the full launch of the Humira biosimilar 'Uplyma.' The biosimilar 'CT-P16' of 'Avastin,' which was submitted for approval to the U.S. Food and Drug Administration (FDA) in October last year, is scheduled for release in the second half of this year, with Uplyma and Remsima SC expected to enter the U.S. market next year.

Researcher Jaekyung Park of Hana Financial Investment noted, "If Uplyma and Remsima SC achieve meaningful penetration rates amid fierce competition, re-rating could occur alongside earnings growth."

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