KTB Investment & Securities lowered its annual earnings estimate for Celltrion Healthcare on the 15th and lowered its target price from 130,000 won to 100,000 won. The investment opinion remained 'buy'.
"We recorded an earnings shock due to Truxima supply and price adjustment, lack of sales in Yuflyma and Regkirona, and slow earnings growth of Remsima SC," KTB Investment & Securities said.
"However, the investment opinion will remain 'buy' due to solid sales of Inflectra and an increase in sales of Yuflyma and Remsima SC from next year when it is expected to revitalize the European market and expand direct sales.".
Celltrion Healthcare recorded consolidated sales of 409.1 billion won and operating profit of 22 billion won in the third quarter of this year. This is a decrease of 11.7% and 82.8%, respectively, compared to the same period last year.
"The drop in sales due to the adjustment of U.S. Truxima inventory had a negative impact on third-quarter earnings," KTB Investment & Securities said. "As Yuflyma's bid in Europe is planned at the end of the year, and it is expected to grow sales of Inflectra and to secure high Q due to the reduction of the price of Truxima, sales in the fourth quarter are estimated at 498.3 billion won, down 32.7% compared to the same period last year.".
Earnings are expected to improve from next year. KTB Investment & Securities said, "the future stock price direction is the performance growth of Remsima SC and Yuflyma," and "sales growth will accelerate next year when direct sales and European bidding schedules are scheduled.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
