[Click eStock] Green Cross, COVID-19 Cases Are Decreasing

[Asia Economy Reporter Junho Hwang] Daishin Securities recorded an earnings surprise in the first quarter of this year due to the expanded performance of GC Green Cross's subsidiaries, but maintained GC Green Cross's target stock price at 240,000 KRW on the 3rd, stating that the second quarter performance this year may fall short of expectations due to a decrease in COVID-19 confirmed cases.

In the first quarter of this year, GC Green Cross's consolidated sales amounted to 416.9 billion KRW, a 47.6% increase compared to the previous year. Operating profit recorded 41.8 billion KRW, expanding by 736%. This performance far exceeded market expectations. The results were influenced by high growth in the performance of subsidiaries GCell and GC Green Cross MS due to the increase in COVID-19 confirmed cases, improved profitability from expanded exports of Hunterase, and a decrease in selling and administrative expense ratios. GC Green Cross's standalone sales were 264.4 billion KRW, a 25.3% increase year-on-year, while operating profit recorded 7.2 billion KRW, a 1021.9% increase, but still fell short of Daishin Securities' forecast by 12%.

Yunjin Lim, a researcher at Daishin Securities, stated, "Due to the reflection of Southern Hemisphere flu vaccine export volumes in the second quarter of this year, standalone operating profit is expected to increase by 60.2% year-on-year to 9.2 billion KRW," adding, "Due to the decrease in COVID-19 confirmed cases, a decline in consolidated subsidiary performance is expected, and consolidated operating profit is estimated to be 24.3 billion KRW." She further added, "Although the consolidated operating profit estimate for this year was adjusted from 90.4 billion KRW to 126.7 billion KRW, the target stock price is maintained due to changes in the performance estimation period."

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