DB Securities noted on the 1st that operating profit is expected to expand due to the export of active pharmaceutical ingredients (APIs) and income from technology fees related to Yuhan Corporation. The target stock price remains at 135,000 won, and the investment recommendation is maintained as 'buy.'
DB Securities forecasts that Yuhan Corporation will record annual sales of 2.3 trillion won and operating profit of 111.1 billion won this year. This represents increases of 11.3% and 102.4% compared to the same period last year, respectively. After hitting a low in first-quarter results, Yuhan Corporation has seen an increase in technology fees due to the expansion of its overseas API business and the combination therapy of amivantamab and lazertinib.
In the API business, contracts for supplying Gilead-style APIs by its subsidiary Yuhan Chem have already exceeded 280 billion won. To accommodate the increase in supply, the Hwaseong plant is expanding production facilities, which are expected to reach 1.28 million liters starting in the second half of 2027.
Income from technology fees is projected to increase due to the global expansion of lazertinib, a treatment for non-small cell lung cancer. Currently, the global performance of lazertinib is at an initial level and is being expanded worldwide through combination therapy with amivantamab. Milestone payments are expected following the launch in Europe in the fourth quarter, after Japan in the second quarter, and further increases in performance are anticipated.
DB Securities researcher Lee Myung-sun analyzed, "If the combination therapy receives approval from the U.S. Food and Drug Administration (FDA), global sales are expected to surge."