[Click e-Stock] "GC Green Cross, Disappointing Q3 Results... Target Price Lowered"

On October 18, Daol Investment & Securities stated that it expects GC Green Cross’s third-quarter results this year to fall short of market expectations, and accordingly lowered its target price from 160,000 won to 140,000 won. However, the firm maintained its 'Buy' investment rating, anticipating that sales of Hunterase, a treatment for Hunter syndrome, will normalize starting next year.

On this day, Daol Investment & Securities analysts Lee Jisoo and Lim Doyoung commented, "GC Green Cross’s consolidated sales for the third quarter are expected to reach 464.8 billion won, up 1.1% year-on-year, while operating profit is projected to decrease by 33.4% to 32.5 billion won." They explained, "Although sales of overseas vaccines and the new shingles vaccine, Singrix, are growing, sales of influenza vaccines are declining due to competitors entering the market. Additionally, export sales of Hunterase are shrinking due to purchasing power issues, such as the appreciation of the Egyptian currency resulting from the prolonged war in Russia. As a result, the company’s performance is expected to fall short of market forecasts."

The analysts further noted, "In the fourth quarter, sluggish sales of domestic influenza vaccines and overseas Hunterase are expected to continue, and there will likely be one-off labor costs such as incentives. As a result, this year’s operating profit is projected to fall by 61.2% year-on-year to 31.6 billion won." They added, "This year’s sales are expected to decrease by 2% from last year, reaching 1.6766 trillion won."

However, overseas sales of Hunterase are expected to normalize starting next year. The analysts explained that, as a treatment for a rare disease, Hunterase will continue to see steady demand from patients. Expectations are also high for expansion into the U.S. IVIG market and external growth through IVIG-SN 10%, an immunoglobulin product. The analysts stated, "IVIG-SN 10% applied for FDA approval in the United States on July 17, and approval is anticipated early next year. The plan is to launch the product in the second half of next year, with direct sales by the U.S. subsidiary." They added, "If the launch proceeds as scheduled, full-scale sales could begin in 2025."

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