Samsung Biologics Incheon Songdo Plant 3 / Hankyung DB
Samsung Biologics(838,000 -1.30%)Reached 1 trillion won in annual sales after 9 years of establishment. It is an analysis that the demand for consignment production (CMO) increased due to the Corona 19 pandemic, and sales of Corona 19 treatment were recognized early.
On the 27th, domestic securities companies predicted that Samsung Biologics will continue to grow in earnings this year. The target price was also raised at once.
Samsung Biologics recorded sales of 1.16 trillion won and operating profit of 2928 billion won last year. Sales increased 66% from the previous year (701.6 billion won). Operating profit surged 219% to 91.7 billion won.
This is because the utilization rate of the entire plant including the third plant has risen, and the sales of CMOs for the treatment of Corona 19 have been reflected. Hyemin Heo Kiwoom Securities(146,500 -2.66%) The researcher said, “In particular, the fact that some of the sales for production in the fourth quarter were recognized faster than expected seems to be the biggest factor in the earnings surprise.”
Dong-Gun Lee, a researcher at Shinhan Investment Corp. said, “The utilization rate for each plant in the fourth quarter was 60% for the first plant, the maximum operation value for the second plant, and 50% for the third plant.” It was partially reflected in the performance,” he explained.
Seomihwa Yuanta Securities(3,125 -3.10%) The researcher said, “Operating profit also greatly exceeded market expectations (consensus) due to the effect of operating leverage from increased sales.” Samsung Biologics’ operating margin last year was 25%, nearly doubled from 13% in 2019. It is an analysis that despite the increase in sales and management expenses, the effect of operating leverage has also been added as sales increased significantly.
We believe it is necessary to pay attention to the rapid rise in the utilization rate of the 3rd plant this year. Ka-Hye Hong, a researcher at KB Securities, said, “All factories are close to full operation this year, and the maximum performance is expected.” .
Early orders from the new 4th plant are also expected to serve as an additional upside (momentum). The 4th plant, which started construction in the second half of last year, is expected to start commercialization in 2023, starting with some production lines in the second half of next year.
Jin Hong-guk, a researcher at Korea Investment & Securities, said, “We will focus on our activities to win orders for the 4th factory this year.” “The main catalyst for the stock price in the future will be the size of the 4th factory.” Researcher Lee Dong-Geon said, “The first new orders for the 4th plant are expected to be received from the second half of this year to the first half of next year.”
Researcher Hye-min Heo said, “We are expecting a profit leverage effect from a sharp increase in the utilization rate of the 3rd plant this year.” This is expected” he said.
Shinhan Investment and Meritz Securities raised the target price of Samsung Biologics to KRW 1 million each. Kiwoom Securities raised it to 980,000 won.
Reporter Kim Ye-na [email protected]
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