Hana Financial Investment has proposed a new target price of 310,000 won and an investment opinion "buy" for SK Bioscience, saying it expects growth beyond COVID concerns.
"The results of clinical phase stage 2 of GBP510 (COVID-19 vaccine) were announced as of November 5, and more than 99% of 328 patients formed neutralization antibodies," Hana Financial Investment said.
Hana Financial Investment said, "The level and ratio of neutralizing antibodies compared to ChAdOx1-S of AstraZeneca, an active control group, are in progress in the third phase of global clinical trials in GBP510 domestic and foreign countries.".
Hana Financial Investment also added, "It is possible to confirm the validity of fewer patients compared to existing Phase III clinical trials that check the prevention rate, which is advantageous for recruitment and is highly likely to succeed by confirming the already excellent level of Chinese antibodies in the first and second clinical trials.".
Hana Financial Investment added, "We expect SK Bioscience to record sales of 560.7 billion won in the fourth quarter, operating profit of 298.2 billion won, sales of 1.388 trillion won this year, and operating profit of 518.4 billion won.".
"We expect to recognize the volume of the delayed vaccine CDMO (entrusted development production) and the Novavax license that completed DS production in the 4th quarter," Hana Financial Investment said.
"SK Bioscience's cashable assets based on about 1.5 trillion won in funds secured through public offering and earnings in the 2nd and 3rd quarter are around 1.2 trillion won.".
"The cash secured by predicting and securing additional cash based on positive performance in the fourth quarter is an opportunity for growth," Hana Financial Investment said.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
