Report

Samsung Biologics (207940.KS): Q18 preview, look from a long-term perspective

- We maintain BUY on Samsung BioLogics given the prospect of rising biologics CMO demand in the mid/long term and the expected normalization of its plant 3 facility in 4Q18. We adjust up our target price from KRW510,000 to KRW680,000 considering the following: 1) global biologics CMO/biosimilar peer multiples remain high; 2) subsidiary Samsung Bioepis’s key pipeline drug obtained a European sales license; and 3) the value of SAIT101 developed by Archigen Biotech, its JV with AstraZeneca, has been recognized into our valuation.

Underlying
SAMSUNG BIOLOGICS Co. Ltd.

Samsung Biologics is engaged in the manufacture of biological products. Co. provides CMO (Contract Manufacturing Organization) services that serve other domestic and international pharmaceutical companies on a contract basis to produce high-tech biomedicine as of the date when the business report is submitted. Co.is also engages in the research & development and commercialization of biosimilar products.

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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