[Click eStock] Samsung Biologics, Orders Following Every Expansion... Record Quarterly Performance Each Time

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[Asia Economy Reporter Kwon Jae-hee] Cape Investment & Securities on the 4th gave Samsung Biologics a 'Buy' rating with a target price of 1,200,000 KRW.

Samsung Biologics recorded consolidated sales of 511.3 billion KRW and operating profit of 176.4 billion KRW in the first quarter of this year. This represents increases of 96.1% and 137.4% respectively compared to the same period last year, exceeding market expectations.

The strong performance is attributed to improved sales volume from the full operation of Plants 1, 2, and 3, increased sales in other segments such as DP (Drug Product), and the exchange rate effect due to a high proportion of overseas sales (about 75%). In particular, the full operation effect of Plant 3 significantly contributed to increased profit resilience in fundamentals.

Although the second quarter of this year is expected to be somewhat slower, annual performance is anticipated to improve. In the second quarter, Plants 1 and 3 are expected to maintain full operation, while Plant 2 will operate at about 50% capacity due to scheduled maintenance. Nevertheless, the annual results are expected to maintain a high growth trend due to improved production efficiency and increasing sales of DP and other segments.

Researcher Oh Seung-taek of Cape Investment & Securities forecasted, "Samsung Biologics' annual performance this year is expected to be sales of 2.0113 trillion KRW and operating profit of 689.2 billion KRW."

Plant 4, which will partially operate in October this year, is expected to be fully operational in the second half of 2023. The existing plan is progressing without disruption, and pre-order activities are ongoing.

Researcher Oh stated, "Despite the increase in the number of shares due to the new stock listing through a rights offering in April, Samsung Biologics maintains the target price at the existing 1,200,000 KRW based on these factors."

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