April 25, 2024

• 

[THE INVESTOR] GC failed to meet earnings expectations in the second quarter, said Korea Investment and Securities on Aug. 1, lowering the target price to 210,000 won (US$188) from 260,000 won while maintaining a “buy” recommendation.
 

Dragged down by 12 percent decline in sales of higher margin vaccines and 19 percent hike in R&D costs, its operating profit came in at 13.3 billion won, 57 percent lower than market consensus. The fact that slow earnings in the period is from structural reasons including deepening competitions is worrisome, said analyst Jin Hong-guk.

Its blood derivatives have faced price competition in overseas market while weak sales of vaccines may continue from launch of rival products at home, threatening stable earnings growth. 


Obtaining US Food and Drug Administration’s approval for IVIG is crucial. When the blood derivative debuts in the US, it could boost the company’s average annual operating growth rate to 16 percent between 2019 and 2023, said the analyst. 

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