[Click eStock] ST Pharm with High Visibility of Earnings Growth This Year

iM Securities analyzed on the 20th that ST Pharm has high visibility for performance growth this year. However, due to recent adjustments in future estimates reflecting recent results, the target stock price was lowered to 120,000 KRW.

In the fourth quarter of last year, ST Pharm recorded sales of 117.9 billion KRW and an operating profit of 25.2 billion KRW. Compared to the same period last year, sales decreased by 2.2%, but operating profit improved by 17.2%. Jang Min-hwan, a researcher at iM Securities, said, "Sales fell short of expectations," adding, "Operating profit exceeded expectations due to an increased proportion of high-margin oligonucleotides and low-molecular-weight compounds."

This year, performance growth is expected. He said, "Unlike last year, when annual sales growth was limited compared to the previous year, the increased order backlog and the high proportion of commercialized products provide high visibility for performance growth this year," adding, "As of the third quarter of last year, ST Pharm's oligonucleotide order backlog was approximately 160 million USD, an 83% increase compared to the beginning of the year."

He added, "Based on the deficiency syndrome treatment drug (MT1621) and new orders secured last year, about 10 billion KRW in growth can be expected," and forecasted, "ST Pharm's annual sales and operating profit this year will be 327.4 billion KRW and 41.3 billion KRW, respectively, representing increases of 18.6% and 36.8% compared to the previous year."

Regarding the pharmaceutical tariff policy in the United States, he advised continuous monitoring is necessary. He explained, "Until specific policies such as whether tariffs will be imposed on active pharmaceutical ingredients are announced, continuous monitoring is required," and added, "As of the third quarter of last year, the company's sales proportion to the U.S. market was about 29%."

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