[Click eStock] "Samsung Biologics, Aggressive Expansion... Outlook Lower in the First Half, Higher in the Second Half"

Hana Securities Report

Hana Securities positively evaluated Samsung Biologics' more aggressive expansion compared to the past on the 3rd. Accordingly, it maintained a buy rating and a target price of 1,150,000 KRW.

Jae-kyung Park, a researcher at Hana Securities, stated, "Samsung Biologics is expected to record Q1 sales of 563.3 billion KRW, up 10.2% year-on-year on a separate basis, and operating profit of 173.3 billion KRW, down 1.6%, falling short of consensus (average securities firm forecast)." He explained, "The biggest reason for the Q1 performance slowdown is the decrease in the number of batches recognized as sales."

Researcher Park analyzed, "Contract manufacturing drugs are recognized as sales after production, delivery to the client, and quality confirmation, a process that takes three months. Among the batches recognized as sales this quarter (batches produced in Q4 last year), there are batches with a longer period than the usual three months, and it is estimated that the number of batches recognized as sales has decreased."

He added, "However, this effect is temporary, and the unrecognized batches will be recognized in the second half of the year, so this year's performance is expected to show a pattern of lower first half and higher second half."

He said, "Samsung Biologics' separate sales this year are expected to increase by 13.7% year-on-year to 2.7711 trillion KRW, and operating profit to rise by 4.8% to 1.0144 trillion KRW. Consolidated sales are forecast to increase by 18.0% to 3.5415 trillion KRW, while operating profit is expected to decrease by 3.4% to 950.5 billion KRW."

He continued, "Samsung Biologics' 5th plant is an 180,000-liter antibody plant, scheduled to start operation in September 2025, and upon completion of expansion, it will have an overwhelming global No.1 production capacity of 784,000 liters. The 4th plant has signed contracts for 11 products from 8 clients and is discussing contracts for 34 products from 26 clients."

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