Samsung Biologics rose 4% in early trading on the 2nd. The move is seen as being driven by improved investor sentiment after the securities industry issued positive outlooks for this year's earnings.
As of 9:34 a.m. on the 2nd, Samsung Biologics was trading at 1,647,000 won on the Korea Exchange, up 75,000 won (4.77%) from the previous session.
Heo Hyemin, an analyst at Kiwoom Securities, said, "With volumes deferred from the fourth quarter of last year recognized in the first quarter, sales in the first quarter will exceed the customary share," and "Amid the recent surge in the exchange rate, the market is expecting results that beat expectations."
Kiwoom Securities projected Samsung Biologics' first-quarter revenue at 1.2813 trillion won and operating profit at 581.3 billion won. Revenue rose 28% year over year, and operating profit increased 35%.
It also signaled expectations for improved results in the second half. That is because the U.S. Rockville plant the company acquired is set to begin production in the second quarter and start being fully reflected in revenue from the third quarter.
Benefits from the enforcement of the U.S. biosecurity law are also anticipated.
Ha Hyun-su, an analyst at Yuanta Securities Korea, said, "With the enforcement of the biosecurity law, the U.S. Office of Management and Budget plans to disclose a list of regulated companies within the year," adding, "Given the time required for changes in production facilities, after the announcement of the regulated companies list, this will lead to order wins for contract development and manufacturing (CDMO) companies outside China, including Samsung Biologics."