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Panorama of Celltrion headquarters. (Photo=Celltrion) |
[Alpha Biz= Reporter Kim Minyoung] On the 10th, Sangsangin Securities analyzed that Celltrion's stock price surged from KRW 130,000 in September 2023 to KRW 240,000 in early January 2024. Subsequently, it underwent a correction phase due to diminishing expectations of interest rate cuts, but recently rebounded to approximately KRW 190,000.
The correction in stock price was attributed to uncertainties surrounding the company's performance in the first half of 2024 following the merger. Sangsangin Securities noted, "The disclosure of first-quarter 2024 performance has substantially reduced earnings uncertainty by outlining the post-merger sales trend and profitability structure." They added, "The burden of inventory valuation will diminish significantly quarter by quarter, and with the completion of the KRW 100 billion concession in the first and second quarters, profitability is expected to notably improve in the latter half of the year."
Further upward momentum for the stock prices stemmed from the consistent growth of existing products in the European market and the robust expansion of new products in the U.S. market.
"While the biotech sector undergoes adjustments, it presents an opportunity for Celltrion, which derives sales from exports, in terms of stability in business performance. The first half of the year, including the first quarter, could serve as a period for the company to assess its business performance," Sangsangin Securities stated. "We anticipate the company to be revalued starting from the second half of the year. There's potential for stock price leveling up by the latter half of the year."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
