Mirae Asset Securities said on the 28th that, for Celltrion(068270), the current share price is undervalued compared with competitor Sandoz's biosimilar business value. It maintained a "buy" (BUY) rating and raised the target price by 7.7% to 280,000 won from 260,000 won.
According to Mirae Asset Securities, Celltrion's second-quarter consolidated revenue this year was 1.3937 trillion won, up 45% from a year earlier, and operating profit was 451.8 billion won, up 86.3%. The operating margin was 32.4%, an improvement of 7.2 percentage points from a year earlier.
Kim Seung-min, an analyst at Mirae Asset Securities, said, "The key to the earnings improvement is a better product mix centered on high-margin new products," and noted, "Within bio revenue, the share of new products expanded to 65%, and combined revenue from five new items surged 4.7 times from a year earlier."
By product, Remsima SC (199.6 billion won) and Yuflyma (195.4 billion won) are driving growth, while five new items launched since 2024 (Steqeyma, OMLYCLO, Stoboclo/Osenbelt, Aptozma, Eydenzelt) posted a combined 314.4 billion won in revenue, establishing themselves as a new growth engine.
In particular, OMLYCLO leveraged its first-mover status in Europe to secure a 21% share in just three quarters after launch, recording 116.7 billion won in revenue.
Mirae Asset Securities forecast Celltrion's full-year revenue at 5.3874 trillion won and operating profit at 1.7761 trillion won, raising its previous estimates by 3% and 9%, respectively. It also said the stock remains attractively undervalued from a valuation perspective.
Kim said, "The EV/EBITDA multiple of Sandoz, a leading global biosimilar company, is around 14 times, but about 65% of Sandoz's sales come from generics," adding, "Celltrion has secured high profitability by building its own manufacturing system from the early days of the business."
He added, "Applying a target EV/EBITDA of 28 times is justified, and the current share price is undervalued even compared with Sandoz's biosimilar business value."