On the 24th, KTB Investment & Securities said that it expects momentum from Celltrion and Celltrion Healthcare and recommended it as an attractive investment destination than Samsung Biologics and SK Bioscience.
The combined market cap of Samsung Biologics, Celltrion, Celltrion Healthcare, and SK Bioscience was 149 trillion won as of the 23rd, accounting for 8.9% of the market cap of KOSPI drugs. The combined proportion of KOSDAQ listed companies Celltrion Healthcare is 9.7%.
Lee Hye-rin, a researcher at KTB Investment & Securities, said, “There was a relatively favorable supply and demand due to market participants’ generous valuations of domestic leading companies in the COVID-19 vaccine and treatment industry and a decrease in investment attractiveness in the IT industry.” “Samsung Biologics and SK Bio I prefer Celltrion and Celltrion Healthcare groups over Science,” he said.
Celltrion and Celltrion Healthcare’s stock prices were temporarily sluggish after the announcement of their 2Q earnings results, which were significantly sluggish than the market expected.
However, it is the No. 1 treatment for COVID-19 in Korea in the name of securing a sufficient amount of vaccine supply and a treatment to minimize the number of fatalities and severe patients, as well as expectations for the approval of the US and European approvals for the COVID-19 treatment Rekkona. The stock price is rebounding in the short term due to growing market interest in Lekkona.
“It is difficult to predict how much sales will be achieved in Lekkona, but it is expected to be reflected as a positive event in the share price depending on European licensing issues and order status,” said Lee. Considering the earnings outlook for the second half of the year, we believe it will be possible in the short term to fill the yield gap, which has been sluggish compared to the market and industry since April due to sluggish earnings momentum.”
“It is burdensome to recommend an additional overweight in the short term, given that Samsung Biologics has limited upside potential and the market cap gap with its competitor Lonza is not large.” We’re going to get to that point,” he added.
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