"Samsung Biologics target price raised on full-capacity operations" ... OCI's operating profit surges 889% on higher oil prices [Jutopia]

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[The Financial News] Here is a roundup of major brokerage reports on the morning of April 23.
Samsung Biologics was assessed as entering a structural growth phase as full-capacity operations at Plants 1 through 4 continue and the launch of Plant 5 is imminent. OCI, a semiconductor materials and industrial chemicals company, posted an earnings surprise in the first quarter, with operating profit soaring 889% from the previous quarter on the back of higher oil prices. Nongshim was also analyzed as seeing fading expectations for a rebound in U.S. sales, despite the effect of its collaboration with the Netflix animation 'KPop Demon Hunters.'
\r\n\r\n◆Samsung Biologics (207940)― DS Investment & Securities Co., Ltd. / Researcher Kim Min-jung
- Target price: 2.1 million won (raised from 1.3 million won) | Previous close: 1.561 million won
- Investment rating: Buy
DS Investment & Securities Co., Ltd. raised its target price sharply, saying Samsung Biologics' first-quarter results were in line with market expectations and that the company continues to post solid growth. Researcher Kim Min-jung said that, in addition to full-capacity operations at Plants 1 through 4, the 180,000-liter Plant 5 is expected to contribute to sales from the second half of this year, and that structural growth in operating profit is likely from 2027. She added that revenue from the GSK U.S. plant, acquired from GlaxoSmithKline for $353 million, will be reflected from the second quarter, and that roughly 50% of current production capacity has already been booked, leaving ample room for earnings estimates to be revised upward if additional orders come in.
\r\n\r\n◆OCI (010060)― Samsung Securities Co., Ltd. / Researcher Jo Hyun-ryeol
- Target price: 155,000 won (raised from 130,000 won) | Previous close: 121,400 won
- Investment rating: Buy
Samsung Securities Co., Ltd. raised its target price for OCI, saying the company delivered an earnings surprise in the first quarter as operating profit jumped 889% from the previous quarter during an upswing in oil prices. Researcher Jo Hyun-ryeol said the company was driven by the Carbon Chemicals division, which generated 31.7 billion won in operating profit thanks to the surge in oil prices since February. He also forecast that in the second quarter, the Basic Chemical Division will see operating profit rise more than tenfold from the previous quarter as sales normalize after maintenance work and demand for semiconductor materials remains strong.※Pitch (Pitch)This is a sticky black byproduct left at the final stage of crude oil refining. It is mainly used as an industrial material for making aluminum or electrodes, and when oil prices rise, both selling prices and profitability increase. OCI's improved first-quarter results were largely driven by strong sales of this pitch.※Basic Chemical Division · Carbon ChemicalsThese are OCI's two core business divisions. The Basic Chemical Division produces chemicals used in semiconductor processes, such as hydrogen peroxide and phosphoric etchants, while Carbon Chemicals makes industrial materials such as coal tar pitch and carbon black from byproducts left after crude oil refining. When semiconductor demand rises, the Basic Chemical Division benefits; when oil prices rise, Carbon Chemicals benefits. The two divisions therefore tend to drive earnings at different times.
\r\n\r\n◆Nongshim Co., Ltd. (004370)― Daol Investment & Securities Co., Ltd. / Researcher Lee Da-yeon
- Target price: 500,000 won (cut from 550,000 won) | Previous close: 377,500 won
- Investment rating: Buy
Daol Investment & Securities Co., Ltd. lowered its target price for Nongshim Co., Ltd. from 550,000 won to 500,000 won, saying expectations for a rebound in U.S. sales have weakened. Researcher Lee Da-yeon explained that sales in the U.S. were expected to recover from the fourth quarter of last year thanks to the collaboration with the Netflix animation 'KPop Demon Hunters,' but they only reached a level similar to the previous year. As a result, the firm lowered its fair price-to-earnings ratio. She added, however, that the launch of the Noksan Export Plant in Busan in October and faster growth in European exports could become investment themes in the second half of the year.
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sms@fnnews.com Sung Min-seo Reporter