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Samsung BioLogics (photo = Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On the 4th, KB Securities raised its target price for Samsung Biologics from 1.1 million won to 1.26 million won, citing expectations for the company to benefit from the Biosecurity Act in the medium to long term and predicting that its Q3 earnings will exceed expectations.
KB Securities forecasts that Samsung Biologics' consolidated operating profit for the third quarter will be 351.5 billion won, a 10% increase compared to the same period last year, which is expected to surpass consensus estimates (market average forecasts) by 15%. They attributed this to the sustained strength of the dollar compared to existing business plans and an increase in inquiries related to initial contract development research under the U.S.-China Biosecurity Act.
The firm noted, “Although there has been temporary confusion in the market regarding the U.S.-China Biosecurity Act, it is still expected that the key legislation will be passed within the year.” They added, “Currently, inquiries about CDOs (Contract Development Orders) are positively increasing, and from a medium to long-term perspective, this remains an attractive investment point.”
However, KB Securities cautioned, “Discussions typically take about a year before contracts are finalized, so it is more effective to observe the movements of non-Chinese contract development and manufacturing organizations (CDMOs) from a medium to long-term perspective rather than a short-term approach.”
KB Securities slightly adjusted its annual operating profit forecast for Samsung Biologics this year from 1.418 trillion won to 1.417 trillion won. In contrast, the estimated annual operating profit for next year was raised from 1.447 trillion won to 1.495 trillion won, reflecting a 3% increase.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
