[앤츠랩]A stock that doubled sales in 2 years, not too long after a million won notice

The market continues to come and go. When you’re anxious, it’s a value stock, but it’s a keyword that you can’t give up on growth. Although it is relatively stable due to its large size, is there any stock that is attractive in the long run? So I chose it. This is Samsung Biologics.

Biopharmaceuticals made from biologically-derived substances have a greater potential for growth than chemical (synthetic) drugs. The late Chairman Lee Kun-hee, who looked into the future, chose bio as the group’s food since 2010. That’s why Samsung Biologics was born. Biopharmaceutical consignment production (CMO) is the main focus. Founded in 2011, it has been just 10 years, and it is currently the world’s No. 1 production capacity (360,000 liters), which is truly super-fast growth. Samsung’s unique fast follower strategy worked.

It’s not just big. It works fine. Orders are increasing year by year, and the plant utilization rate is also improving. For companies that make anything, these two are key indicators. Last year’s sales were 1.16 trillion won. It doubled in two years. Operating profit was about 300 billion won, far exceeding market expectations. It is surprising that the company, which ranks 7th in the KOSPI market cap, is growing at this rate.

At the time of listing in 2016, the public offering price was 136,000 won, but it conquered the 500,000 won level in just two years. It was in mid-2019 that the stock price, which had been stagnant, started to rise sharply. It went up from 300,000 won to 849,000 won on January 27 this year. The recent one-year growth rate far exceeded the KOSPI increase rate, but it has retreated to 750,000 won. Right now?

Any drug can be developed by a small company, but not mass-produced by anyone. So, we commissioned the biopharmaceutical CMO market to grow rapidly from 12 billion dollars in 2019 to 22 billion dollars after 5 years. With the acceleration of aging, the global pharmaceutical market is steadily growing, and the number of biosimilars (patented generic drugs) also plays a role. At least, you don’t have to worry about your work.

To be successful in the CMO market, first, you must have the ability to handle orders. That’s why scale matters. That way, we can win big orders and reduce fixed costs. When the 4th plant with a scale of 256,000 liters is completed in 2023, the influence of Biologics will increase.

Second is quality. Because you can’t leave production to a company you don’t trust. Although it has been only 10 years ago, Biologics already has many global pharmaceutical companies as customers. The more your portfolio builds up, the stronger your position will be. It is similar to the strategy that Taiwanese TSMC ranked first in the world of semiconductor CMO.

Recently, it is expanding its scope to CDO (consignment development). It is a business that provides services such as biopharmaceutical development and process design, and clinical substance production and testing. Naturally, synergy with the CMO is a great area. It aims for a CDMO model that encompasses CDOs and CMOs. In order to expand the market in earnest, Biologics opened its first overseas R&D center in San Francisco, USA last October. CDO research centers are also established in Boston, Europe, and China.

There are strong subsidiaries in the biosimilar field. This is Samsung Bioepis. Bioepis recently entered the 10th biosimilar clinical trial. It has been less than 10 years since its establishment, but it has already succeeded in developing 3 types of autoimmune disease drugs and 2 types of anticancer drugs and is selling them in domestic and overseas markets.

Representative John Lim said at a conference not long ago, “We will expand our business portfolio in the next 10 years.” It means that we will expand our business structure centered on biopharmaceuticals to cell therapy and vaccines. In particular, it seems that it will target the vaccine CMO market, which has grown due to the Corona 19 incident. It’s a bit far away, but eventually we’ll start developing new drugs.

In the long run, it’s just a beautiful sport. However, it is burdensome because the new stock price has risen a lot in the past 1-2 years. Many brokerage firms set a target price of KRW 1 million, but the rate of increase is unlikely to be rapid. Another point of concern that the fraudulent accounting issue has not been completely finished.

In conclusion, after 6 months

Samsung Electronics didn’t know this at first

An’s Lab, a healthy staple food restaurant, also visits the newsletter three times a week (Mon/Wed/Fri). For more stories than articles, please subscribe to our newsletter.

https://maily.so/antslab