[Click eStock] "Samsung Biologics, Sangjahago Trend... Lowest in Q1"

On the 2nd, Kiwoom Securities maintained a target price of 900,000 KRW and an investment opinion of 'Outperform' for Samsung Biologics, expecting a bottom-heavy performance this year as well.

Researcher Heo Hyemin stated, "The consolidated sales for Q1 are expected to increase by 21% year-on-year to 873.5 billion KRW, and operating profit is expected to rise by 18% to 226.4 billion KRW," adding, "This is generally in line with the market consensus of 917 billion KRW in sales and 232.9 billion KRW in operating profit."

Heo said, "Plants 1, 2, and 3 are still operating at full capacity, and the first production batch of 60,000 liters from Plant 4 is running smoothly," adding, "The remaining 180,000 liters are currently in the ramp-up phase, and the sales contribution from Plant 4 is expected to have a leverage effect covering fixed costs more as we move into the second half of the year."

He noted, "Due to the production schedule, Q1 is expected to be the lowest performance period of the year," and pointed out, "With the recruitment for Plant 5, expected to start operations in April 2025, labor costs are anticipated to increase." The company is expected to hire about 500 employees annually.

The mid- to long-term impact of the Biosecurity Act is expected to continue. The Biosecurity Act, which restricts the activities of Chinese bio companies in the U.S., passed the U.S. Senate Homeland Security Committee and positively influenced investment sentiment in March.

He added, "However, the currently felt reflexive benefits are minimal, and since there is a guidance announcement and a 1-2 year grace period after the bill's passage, mid- to long-term reflexive benefits are expected following the bill's enactment."

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