[Click eStock] Samsung Bio, Strong Q2 Earnings Performance

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[Asia Economy Reporter Junho Hwang] Hana Securities announced on the 28th that Samsung Biologics posted results exceeding market expectations in the second quarter of this year and maintained the target stock price at 1,150,000 KRW.

Samsung Biologics recorded separate sales of 503.7 billion KRW, showing a 22.2% increase compared to the previous year. Operating profit was 171.9 billion KRW, up 3.1% year-on-year. These figures surpass the consensus sales of 457.3 billion KRW and operating profit of 148.7 billion KRW, excluding Samsung Bioepis consolidation.

Consolidated sales reached 651.4 billion KRW, a 58.1% increase from the previous year. Operating profit achieved 169.7 billion KRW, up 1.8% year-on-year. Samsung Biologics included Samsung Bioepis as a consolidated subsidiary in the second quarter of this year. Until April, Samsung Bioepis was accounted for using the equity method, but from May, it was reflected through consolidated accounting.

Hana Securities viewed that despite the regular maintenance of Samsung Biologics' second plant, favorable exchange rate effects (the average exchange rate in the first quarter was 1,204 KRW per USD) and batch efficiency led to strong performance.

Samsung Biologics expects sales growth in the low 30% range year-on-year and operating profit margin growth also in the low 30% range for this year’s performance outlook. The previous guidance was set at mid-20% sales growth.

Researcher Jaekyung Park of Hana Securities stated, "We maintain a 'Buy' investment opinion and a target stock price of 1,150,000 KRW for Samsung Biologics."

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