[Click eStock] Samsung Biologics Posts Another Quarterly Record Performance... "Expecting Revaluation"

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 28th that Samsung Biologics is expected to be re-evaluated due to the upcoming announcement of the expansion plan for the 1st Bio Campus and the expansion of its scope through Contract Development and Manufacturing Organization (CDMO) for antibody drugs.

Jae-kyung Park, a researcher at Hana Financial Investment, said, "Samsung Biologics has been selected as the preferred negotiator for the site of the Songdo 2nd Bio Campus and is scheduled to sign a contract in April," adding, "We maintain our investment opinion and target price, but will adjust the target price later reflecting earnings estimates and an increase in the number of shares."

Samsung Biologics reported consolidated sales of 511.3 billion KRW in the first quarter, a 96.1% increase compared to the same period last year. Operating profit rose 137.4% to 176.4 billion KRW, exceeding market expectations. The high factory utilization rate and the fact that overseas sales account for 75% contributed to the positive effect of the rising KRW-USD exchange rate.

This year, the company's earnings forecast projects sales of 2.0126 trillion KRW, a 28.4% increase from the previous year, and operating profit of 647.2 billion KRW, up 20.5%. Researcher Park said, "Although the utilization rate of the 2nd plant in the first quarter, which will be reflected in the second quarter results due to regular maintenance, will decrease, we are revising upward the earnings estimates by reflecting the operation of all three plants (1st, 2nd, and 3rd) in 2022 due to increased batch numbers through improved production efficiency," adding, "Costs incurred during business expansion are reflected, and the proportion of other sales with relatively lower profit margins is expected to increase compared to before, so the operating profit margin is forecast to slightly decrease to 32.2% from 34.3% last year."

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