[Click eStock] "Samsung Biologics Fair Stock Price 1.1 Million Won... Target Price Down"

Daol Investment & Securities lowered the target price of Samsung Biologics from 1.2 million KRW to 1.1 million KRW while maintaining a buy rating.

Despite the full operation of Plants 1, 2, and 3 in the first quarter, it is expected that revenue recognition delays and a decrease in the KRW-USD exchange rate will cause the results to fall short of market consensus.

Continued revenue growth is expected from the full operation of Plants 1, 2, and 3, along with revenue generation related to Plant 4 in the second half of the year, and the anticipated launch of Samsung Bioepis's Hadlima.

With the expansion of Plant 5, Samsung Biologics is expected to establish itself as the world's number one contract manufacturing organization (CMO) for antibody therapeutics, maintaining the buy rating.

However, the target price was lowered to 1.1 million KRW due to adjustments in valuation reflecting consolidated accounting standards, which previously combined Samsung Biologics' operating value and Samsung Bioepis's equity value.

For the first quarter on a consolidated basis, sales are projected to increase by 44% year-on-year to 736.4 billion KRW, and operating profit is expected to rise by 14.9% year-on-year to 202.7 billion KRW.

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