Samsung BioLogics, Below the estimate of operating profit for the 3rd quarter(Yuanta Securities)

[Infostock Daily= Reporter An Hoe Hyun] Yuanta Securities maintained its investment opinion 'Buy' and target stock price of 1.08 million won on the 22nd, saying Samsung BioLogics’ third-quarter operating profit fell short of the market consensus, but its operating profit ratio remained solid.

Samsung BioLogics recorded sales of 274.6 billion won and operating profit of 56.5 billion won in the third quarter. The figure rose 48.6% and 139.3%, respectively, from a year earlier. However, sales exceeded 12.1% compared to the consensus(245 billion won), but operating profit was 12.2% lower than the consensus(64.4 billion won).

"Operating profit fell 30.3% from the previous quarter(second quarter) due to increased costs and payment fees for manpower recruitment," the company explained, adding, "Nevertheless, the operating profit ratio remained at a solid level at 20.6%."

Yuanta Securities predicted that it will stabilize as the plant maintenance cycle, one of the factors that caused the company's performance volatility, is prolonged.

"The factory operation rate in the third quarter, which will be reflected in sales in the fourth quarter, is 70% of the first plant, 100% of the second plant and mid 20% of the third plant. The performance is stabilizing," the company explained, adding, "The operation rate of the first and second plants has stabilized, and the operation rate of the third plants is expected to reach up to 30% annually."

Yuanta Securities forecast Samsung BioLogics' sales of 996.7 billion won and operating profit of 233.3 billion won this year.

Reporter An Hoe Hyun ahh@infostock.co.kr