[Click eStock] "Green Cross, Q2 Results Meet Expectations but..." Target Price Down

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 2nd that it has revised its earnings estimates for Green Cross and lowered the target stock price to 220,000 KRW by adjusting the value of the new drug due to the delay in its US launch. The buy investment rating was maintained.

Green Cross reported consolidated sales of 423.2 billion KRW in the second quarter of this year, up 9.2% year-on-year, and operating profit of 13.1 billion KRW, an 18% increase. This is in line with market expectations.

Operating profit increased despite higher R&D expenses due to the start of the Phase 2b clinical trial for shingles in the US by its subsidiary 'Curevo', as the gross profit margin (GPM) improved by 3.4 percentage points due to the expanded proportion of high-margin prescription drugs and products. Separate sales rose 9.7% to 322.4 billion KRW, and operating profit surged 195.9% to 17 billion KRW.

In the domestic business, sales increased 5.5% to 223.8 billion KRW, driven by continued growth in self-developed prescription drugs and blood products. Overseas business recorded sales of 98.6 billion KRW, with an increase of 66.4 billion KRW in orders for influenza vaccines for the Southern Hemisphere.

Im Yoon-jin, a researcher at Daishin Securities, said, "The resubmission for US new drug approval of 'IVIG-SN' 10% is expected in the second half of the year. Securing the FDA’s production facility inspection schedule is considered important, and the launch timing is estimated to be as early as the first half of 2023. Growth in overseas exports such as IVIG and albumin is expected to expand in the second half due to increased demand for blood products in countries other than the US."

This content was produced with the assistance of AI translation services.