Yuanta Securities Korea said on Apr. 2 that Samsung Biologics completed the acquisition of a U.S. manufacturing facility on the 31st of the previous month, and that the company can confirm the contribution to earnings as revenue is recognized starting in the third quarter. It maintained a target price of 2.1 million won and a "buy" rating. The previous trading day's closing price of Samsung Biologics was 1,572,000 won.
For the first quarter of this year, Samsung Biologics' revenue and operating profit are estimated at 1.2612 trillion won and 591.5 billion won. This represents increases of 26.2% and 37.6% year over year, respectively.
Ha Hyun-su, an analyst at Yuanta Securities Korea, said, "Solid earnings growth is due to revenue recognition of the production volume deferred from the fourth quarter of last year and the full operation of Plants 1–4," and added, "Plant 5 is expected to begin recognizing revenue in the second quarter of this year, with full revenue contribution likely next year." Samsung Biologics plans to expand Plants 6–8 by 2032, and construction of Plant 6 is expected to begin within the year.
Samsung Biologics completed the acquisition on Mar. 31 of a manufacturing facility in Maryland, United States, under an agreement signed with GSK late last year. Ha said, "Profitability is expected to be lower than that of existing domestic plants, but given the smaller scale compared with Plants 1–5, the impact on overall profitability is limited."
As revenue from the U.S. plant is recognized starting in the third quarter, the contribution to earnings is expected to be confirmed later. Yuanta Securities Korea predicted that the company's guidance presented at the start of the year (revenue growth of 15%–20%) will be revised upward.
Ha said, "With the implementation of the biosecurity law, the U.S. Office of Management and Budget plans to announce a list of regulated companies within the year," adding, "Considering the time required for changes in manufacturing facilities, after the list is published, it will lead to order wins for contract development and manufacturing organizations (CDMOs) outside China, including Samsung Biologics."