Celltrion(068270) is showing strength, rising more than 3% even as Korea's stock markets tumble. Following the released strong second-quarter results the day before, positive outlooks from the securities industry appear to have lifted investor sentiment.
As of 9:37 a.m. on the 28th, Celltrion was trading at 184,900 won on the Korea Exchange, up 6,200 won (3.47%) from the previous session.
On the KOSPI and KOSDAQ markets that day, sell-side circuit breakers were triggered amid heavy selling by foreigners and institutions, while Celltrion, along with Samsung Biologics, KB Financial Group, and Shinhan Financial Group, posted gains among the top 20 stocks by market capitalization on the Korea Exchange. It showed the highest increase among the gainers.
The stock's strength appears to be due to a combination of the released solid results the previous day and positive outlooks from the securities industry.
Celltrion disclosed that on a consolidation basis for the second quarter of this year, it posted revenue of 1.3937 trillion won and operating profit of 451.8 billion won. Revenue rose 45% from a year earlier to hit a record quarterly high, and operating profit increased 86.3%. The operating margin was 32.4%.
The improvement was driven by steady sales of flagship products such as Remsima, Truxima, and Herzuma, and strong growth of new biosimilars. Sales of new products jumped 76% from a year earlier, and their share of total biosimilar sales expanded to 65%.
The securities industry also projected the growth trend in results would continue.
Shinhan Investment & Securities raised its target price for Celltrion to 290,000 won from 276,418 won and maintained a "buy" rating.
Lee Ho-cheol, an analyst at Shinhan Investment & Securities, said, "With North American sales growth of high-margin new products, the company has entered a profitability growth phase," and noted, "Following Europe, biosimilar growth in the U.S. market will also gain full momentum."
He added, "With rapid market penetration of new products, results are expected to exceed annual guidance," and projected, "By 2030, it will be possible to build a portfolio of 18 biosimilars while establishing a virtuous cycle that extends to new drug development based on biosimilar revenue."