[Click eStock] "Samsung Biologics, 1Q Surprise Earnings Expected"

High Exchange Rate and Accounting Changes Drive Results
Anticipation for Groundbreaking of 6th Plant in Q2

Samsung Biologics is expected to post strong earnings for the first quarter of this year, surpassing market consensus. This is attributed to high exchange rates and the impact of adjustments in operating profit consolidation and PPA (Purchase Price Allocation) assumptions.

On the 3rd, NH Investment & Securities maintained its 'Buy' rating and target price of 1.3 million KRW for Samsung Biologics based on these factors. The closing price the previous day was 1.05 million KRW.

NH Investment & Securities forecasted that Samsung Biologics would record consolidated sales of 1.2015 trillion KRW and operating profit of 396 billion KRW in the first quarter. These figures represent increases of 26.9% and 78.9%, respectively, compared to the same period last year, and are expected to significantly exceed market expectations. According to FnGuide, the market consensus for Samsung Biologics' first-quarter earnings is sales of 1.1594 trillion KRW and operating profit of 319 billion KRW.

Samsung Biologics' standalone performance is projected at sales of 1.0075 trillion KRW and operating profit of 405 billion KRW. This represents a 50.5% increase in sales and a 74.0% increase in operating profit compared to the same period last year. The figures were calculated assuming an average KRW-USD exchange rate of 1,453 in the first quarter, a 75% utilization rate of the 4th plant, and a 32% contribution to sales.

For Samsung Bioepis, sales are estimated at 376 billion KRW with an operating profit of 79 billion KRW. The high exchange rate effect was also considered a key factor.

Considering the strong first-quarter performance and global competitiveness, it is analyzed that the current stock price is bottoming out and preparing for a rebound. Seung-yeon Han, a researcher at NH Investment & Securities, explained, "Given that Lonza and WuXi Biologics have set sales growth targets of 20% and 17-20% (excluding vaccines) respectively for this year, Samsung Biologics' growth rate is expected to be around 26%. An announcement for the groundbreaking of the 6th plant is anticipated as early as the second quarter, and attention should be paid to whether additional orders will be secured for the 5th plant."

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