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Samsung Biologics. (Photo=Samsung Biologics) |
[Alpha Biz= Reporter Kim Sangjin] As Samsung Biologics approaches the milestone of achieving KRW 4 trillion in annual revenue, securities firms are increasingly raising their target prices. The strong performance in the contract development and manufacturing organization (CDMO) sector has led to multi-trillion won contracts, prompting analysts to set target prices as high as KRW 1.3 million.
According to financial information provider FnGuide on the 24th, the average target price for Samsung Biologics is currently KRW 1,261,500. On that day alone, 12 brokerage firms raised their target prices to the range of KRW 1.25 million to KRW 1.32 million, marking an over 8% increase from the previous average of KRW 1,165,500.
Samsung Biologics has seen its stock price recover to the KRW 1 million level for the first time in over three years, driven by positive forecasts regarding the biosecurity bill currently progressing in the U.S. Legislative efforts have enabled the company to maintain its position above KRW 1 million even amid declines in the KOSPI index, solidifying its status as a "blue-chip" stock.
On the 22nd, the company signed a massive contract for contract manufacturing (CMO) worth KRW 1.7 trillion with a pharmaceutical company in Asia, which pushed its stock price to a new high of KRW 1,103,000 during trading.
Following the release of its third-quarter earnings, securities firms have quickly adjusted their target prices upward. Samsung Biologics reported a consolidated revenue of KRW 1.1871 trillion and an operating profit of KRW 338.6 billion for the third quarter, representing increases of 14.8% and 6.3%, respectively, compared to the same period last year. The sustained full operation of its first three plants and the ramp-up of its fourth plant contributed to this revenue growth.
Additionally, the company surpassed KRW 3 trillion in cumulative sales for the first time, and with expectations for the fourth quarter, annual revenue of KRW 4 trillion seems assured. Analysts now anticipate that Samsung Biologics' annual revenue for the year will reach KRW 4.4668 trillion, a 20.9% increase compared to the previous year.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
