Report

Celltrion (068270.KS): Rapid growth still ongoing

  • -  We maintain our BUY and our KRW360,000 target price on Celltrion in light of the likely US sales approval of Truxima and Herzuma in 2H18 and the long-term momentum to come from subcutaneous Remsima and Inflectra.

  • -  1Q18 review: Results were in line with market expectations as the market share of Truxima, a rituxan biosimilar which made a European debut in 2017, expanded more rapidly compared with Remsima. Sales came in at KRW245bn (+25% YoY), operating profit at KRW116.5bn (+30% YoY, 47.5% operating margin), and net profit at KRW82.4bn (+22% YoY, 33.6% net margin).

Underlying
Celltrion Inc.

Celltrion is engaged in the manufacturing of chemicals for printed circuit board. Co.'s products include plated through hole chemicals, electromagnetic interference chemicals, and macro-Etchant.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Yang Ku Kang

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