'4 Trillion-Won Big Deal' Alteogen Target Price Cut from 580,000 Won to 450,000 Won; DB HiTek’s Undervalued Appeal Grows as Chinese AI and Robotics Demand Explodes [Stocktopia]

[Financial News] Here is a summary of major securities-firm reports released on the morning of September 8.
Analysts expect Alteogen’s earnings growth to continue through the fourth quarter as upfront payments and milestones flow in during the second half of the year, following its technology-transfer agreement worth around 4 trillion won with Novartis.
DB HiTek is expected to post third-quarter results above market expectations, driven by a surge in demand for Chinese artificial intelligence (AI) data centers and robots, successive price increases, and full factory utilization. Lotte Shopping is expected to see slightly slower department-store growth in the third quarter, but discount-store profits are projected to make up for it. Positive factors for its department-store business are also expected to increase toward year-end.
◆ Alteogen (196170)— Hana Securities / Researcher Kim Seon-a
- Target price: 450,000 won (down 22.4%; previously 580,000 won) | Previous-day closing price: 286,000 won
- Investment opinion: Buy (maintained)
Hana Securities set a target price of 450,000 won for Alteogen, forecasting continued earnings growth through the fourth quarter following the technology-transfer agreement worth $3.233 billion, or about 4.4165 trillion won, signed with Novartis on the 2nd. The firm explained that the target-price cut reflects the increase in the number of shares following a bonus issue.
Researcher Kim Seon-a said, "The reason the stock failed to rise significantly despite the big deal worth around 4.4 trillion won is that, considering the administration methods of Novartis’s major blockbuster products, most of the 10 to 11 items are likely to be pipelines still in clinical development. If so, it is difficult to expect the speed and scale of cash inflows to match those of Keytruda and Imfinzi."
She nevertheless noted, "Novartis has numerous late-stage clinical pipelines involving antibodies, antibody-drug conjugates (ADCs), and antibody-oligonucleotide conjugates (AOCs), making it highly likely that the company will exercise at least one option each year." She added that this would have a positive impact on the stock over the medium to long term.
Kim said, "As expectations for high-interest-rate and liquidity-driven markets have faded, the biotech sector is increasingly focused on the actual speed and timing of cash inflows." She added, "Alteogen is scheduled to receive technology-transfer upfront payments, sales milestones from Qlex, and development milestones from existing partnerships in the second half of the year, so its earnings are expected to increase through the fourth quarter."※ Antibody-oligonucleotide conjugate (AOC)This is a next-generation drug-delivery platform that combines an oligonucleotide, a genetic-therapy substance, with an antibody that targets specific cells at disease sites. Novartis’s del-zota, which is being developed as a treatment for muscular dystrophy, is a representative example.※ Keytruda QlexIt is a subcutaneous (SC) formulation of the world’s best-selling cancer drug, Keytruda, administered under the skin instead of intravenously. The product reduces treatment time from more than 30 minutes of an IV infusion to a one- to two-minute injection. Alteogen’s formulation-conversion technology, ALT-B4, is the key to this change, and the product received approval from the U.S. Food and Drug Administration (FDA) in September 2025. As Qlex sales increase, Alteogen receives sales-based milestones followed by royalties.※ MilestoneIn a technology-transfer agreement, a milestone is a success fee paid by a partner whenever a predetermined stage—such as entering clinical trials, receiving approval, or reaching a certain level of sales—is achieved. Unlike an upfront payment received when the agreement is signed, milestone payments are made in stages as development progresses.
◆ DB HiTek (000990)— KB Securities / Researcher Lee Chang-min
- Target price: 200,000 won (up 17.6%; previously 170,000 won) | Previous-day closing price: 100,800 won
- Investment opinion: Buy (maintained)
KB Securities raised its target price for DB HiTek to 200,000 won, saying the company is expected to benefit from growth in China’s AI data-center and robotics markets. Third-quarter operating profit was estimated at 120.8 billion won, up 50% from a year earlier and above market expectations.
Researcher Lee Chang-min said, "The decline in the won-dollar exchange rate is a disappointing factor, but the effects of the first foundry price increase decided in March and full factory utilization are now being fully reflected." He added, "The effects of the second price increase, which will begin to be reflected in this month’s results, will also contribute." DB HiTek exports semiconductors in dollars, so a decline in the won-dollar exchange rate puts pressure on its won-denominated revenue. However, the analysis indicates that price increases and full utilization will offset this impact.
The key issue is the reversal in supply and demand in the 8-inch foundry market. Lee said, "In the mature 8-inch foundry market, leading companies such as Taiwan Semiconductor Manufacturing Company Limited (TSMC) and Samsung Electronics are focusing on 12-inch wafers, reducing supply capacity. At the same time, demand has recently exploded, particularly from China’s AI data centers and robotics sectors."
Lee added, "Despite the positive earnings trend, DB HiTek’s current 12-month forward price-to-earnings (P/E) ratio remains at around 9.4 times, so its undervalued appeal is likely to become much more prominent going forward."※ 8-inch foundryA foundry is a contract-manufacturing business that produces semiconductors designed by other companies. Semiconductors are fabricated on round wafers. An 8-inch (200 mm) wafer is a generation older than a 12-inch wafer. As major manufacturers focus on advanced 12-inch processes, 8-inch production capacity has declined. However, components essential to AI servers and robots—such as power semiconductors, sensors, and analog chips—are still often made on 8-inch wafers, tightening supply.
◆ Lotte Shopping (023530)— KIWOOM Securities / Researcher Park Sang-jun
- Target price: 190,000 won (down 9.5%; previously 210,000 won) | Previous-day closing price: 112,300 won
- Investment opinion: Buy (maintained)
KIWOOM Securities lowered its target price for Lotte Shopping to 190,000 won, expecting domestic department-store growth to slow slightly in the third quarter. However, it maintained its Buy opinion, saying domestic discount-store profits would offset the decline. Third-quarter operating profit was forecast at 170.5 billion won, up 31% from a year earlier.
Researcher Park Sang-jun said, "Third-quarter same-store sales growth is expected to slow slightly because the wealth effect has weakened following the stock-market correction and sales have slowed after promotional events by major home-appliance brands in June and July." He added, "However, the upward revision to domestic discount-store profit estimates will partially offset the downward revision to domestic department-store profit estimates."
Discount stores are expected to post a significant increase in third-quarter same-store sales, supported by a base effect from being excluded last year from stores eligible for livelihood-recovery consumption coupons, spillover benefits from Homeplus store closures, and differences in the timing of Chuseok.
These effects are expected to diminish toward year-end, making department-store trends after November important again in the medium term. Park forecast, "Foreign-customer sales are continuing to grow rapidly due to spillover benefits from Japan-related restrictions. In addition, consumers may bring forward purchases toward year-end ahead of bonus payments by major domestic companies in the first quarter of next year, so department-store growth could accelerate sharply."※ Japan-related restrictionsThis term refers to measures effectively targeting Japan, such as the Chinese government advising its citizens to refrain from traveling to or studying in Japan and restricting imports of Japanese content and seafood. As more Chinese tourists visit nearby Korea instead of Japan, domestic department stores are benefiting indirectly.

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