April 26, 2024

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[THE INVESTOR] Kolon’s earnings will improve in the first quarter buoyed by the strong performances of its subsidiaries, said Hanwha Investment and Securities on Feb. 23, raising the target price to 90,000 won (US$78.95) from 80,000 won.

Kolon has raised its stake in Kolon Global to 75 percent from 62 percent, by exercising its call option for redeemable convertible preference shares, at the end of last year and the move turned out to be favorable for the company, said analyst Lee Sang-won. “Kolon Global’s earnings are clearly on the rise, and will contribute more to Kolon’s on a consolidated basis.”

The rise of its US subsidiary TissueGene’s value to 2 trillion won also was taken into consideration, said the analyst. The US-based medicine company is selling new drugs in South Korea and is likely to go public here, and the sales rights of Invossa, a degenerative arthritis therapy, in Asia belongs to Kolon Life Science, added Lee. 

The shareholder-friendly policies of its major affiliates Kolon Industries and Kolon Life Science will also help maintain the positive stock price trend for the company, forecasted the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)