Daishin Securities has raised its target price for Celltrion from 280,000 won to 290,000 won, an increase of 3.6%, citing rapid growth in new product sales and expectations for improved performance next year. The investment recommendation remains a 'buy.'
Hong Ga-hye, a researcher at Daishin Securities, stated, "We have adjusted our earnings estimates upward to reflect the acceleration in new product sales growth, and we believe that visibility for profit growth in 2027 is increasing." Daishin Securities calculated the target price based on a 12-month forward EBITDA of 2.52 trillion won and a target multiple of 28 times.
For the third quarter of this year, Celltrion reported consolidated sales of 1.5755 trillion won and an operating profit of 525.3 billion won, marking increases of 53.1% and 74.3%, respectively, compared to the same period last year. This represents the highest quarterly performance in the company's history. The operating profit margin improved by 4.0 percentage points year-on-year and by 0.9 percentage points from the previous quarter, driven by the expansion of high-margin new product sales and an improved product mix.
However, net profit was limited to 78.4 billion won due to profitability dilution from increased contract manufacturing sales for Eli Lilly and the impact of currency depreciation, reflecting a decrease of 76.4% year-on-year and 78.9% from the previous quarter.
The growth of new products is also notable. Sales of biopharmaceutical products reached 1.3599 trillion won, a 41.5% increase compared to the same period last year. Notably, the combined sales of five new products launched since last year—Stekima, Omniclone, Idenselt, Stoboclo & Osenbelt, and Aptozma—totaled 388 billion won, representing a 335% increase year-on-year and a 23.4% increase from the previous quarter.
By product, Omniclone achieved sales of 132.1 billion won, a 13.2% increase from the previous quarter, capturing a 30% market share in Europe. Stoboclo & Osenbelt saw sales rise by 52.7% to 112.2 billion won, bolstered by expanded listings as preferred drugs by U.S. pharmacy benefit managers. Aptozma also generated 81.1 billion won in sales, supported by successful bids in Europe and expanded sales in the U.S.
Consequently, Daishin Securities has revised its revenue estimate for Celltrion next year from 6.25 trillion won to 6.708 trillion won, an increase of 7.3%, and its operating profit estimate from 2.267 trillion won to 2.293 trillion won, a 1.2% increase.
* This article has been translated by AI.
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