Kiwoom Securities Lowers SK Bioscience Target Price to 140,000 Won

[Asia Economy Reporter Park So-yeon] Kiwoom Securities has lowered the target price of SK Bioscience to 140,000 KRW.

According to FN Guide on the 30th, Kiwoom Securities recently stated in a report on SK Bioscience that "approval for export of the COVID-19 vaccine Skycovione to regions such as the UK and Europe is expected to be applied for soon," and "approval is anticipated between the end of this year and early next year, so exports through the Global Alliance for Vaccines and Immunization (GAVI) will occur after authorization."

In the third quarter of this year, sales are expected to reach 142 billion KRW and operating profit 62.5 billion KRW, as Skycovione will be added to some of the Novavax supply.

In the fourth quarter, with the full-scale shipment of government contract volumes of Skycovione, sales are expected to reach 342.5 billion KRW and operating profit 190.3 billion KRW.

For this year, sales are projected at 709.9 billion KRW and operating profit at 337.8 billion KRW, with a decline in performance compared to the previous year deemed inevitable.

Huh Hye-min, a researcher at Kiwoom Securities, said, "Demand for vaccines is expected to decrease compared to before, as major vaccine developers anticipate a decline in COVID vaccine sales next year. However, most vaccine manufacturers are preparing to launch booster shots for the autumn Omicron BA.4 and BA.4 subvariants, and SK Bioscience is conducting basic research on BA.4 and BA.5, so it will be possible to confirm whether clinical trials will begin within this year."

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