Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

SK Biopharmaceuticals   / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> is reporting continued stellar performance of its flagship drug cenobamate in US, with Q2 sales rising 114% y/y and 27% q/q to KRW40.3 billion.</li>
<li>Thus far, cenobamate has been launched in the U.S. and EU. The company is looking to launch the drug in Korea, China, and Japan in 2025.</li>
<li>Going forward, the company is expected to narrow its losses, and should turn profitable in 2024. The company is expected to launch new drug, carisbamate in global market in 2025.</li>
</ul>



SK Biopharmaceuticals Co Ltd (326030 KS) is reporting continued stellar performance of its flagship drug cenobamate in US, with Q2 sales rising 114% y/y and 27% q/q to KRW40.3 billion.
Thus far, cenobamate has been launched in the U.S. and EU. The company is looking to launch the drug in Korea, China, and Japan in 2025.
Going forward, the company is expected to narrow its losses, and should turn profitable in 2024. The company is expected to launch new drug, carisbamate in global market in 2025.


SK Biopharmaceuticals (326030 KS): Strong Xcopri US Sales Not Reflected in Share Price Performance

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>Our base case target price of 276,567 won suggests a 37% upside from current levels for SK Inc. Our base case valuation assumes a 30% holdco discount.</li>
<li>At DPS of 8,000 won, this would represent dividend yield of 4% at current price of 202,000 won.</li>
<li>The three largest holdcos/quasi holdcos in Korea which include Samsung C&amp;T, SK Inc, and LG Corp have strongly outperformed KOSPI this year. </li>
</ul>


Our base case target price of 276,567 won suggests a 37% upside from current levels for SK Inc. Our base case valuation assumes a 30% holdco discount.
At DPS of 8,000 won, this would represent dividend yield of 4% at current price of 202,000 won.
The three largest holdcos/quasi holdcos in Korea which include Samsung C&amp;T, SK Inc, and LG Corp have strongly outperformed KOSPI this year. 


SK Inc: Solid Dividends, Ongoing Buyback, and Emphasis on Value Should Lead to Outperformance

Event-Driven

<ul>
<li>On 30 August, SK Inc announced that it will buyback and cancel 200 billion won worth of common shares which represents 1.2% of SK Inc's current market cap. </li>
<li>Our SoTP valuation of SK Inc suggests an implied valuation of 325,228 won per share, suggesting 40% upside from current levels.</li>
<li>SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises to its shareholders.</li>
</ul>


On 30 August, SK Inc announced that it will buyback and cancel 200 billion won worth of common shares which represents 1.2% of SK Inc's current market cap. 
Our SoTP valuation of SK Inc suggests an implied valuation of 325,228 won per share, suggesting 40% upside from current levels.
SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises to its shareholders.


SK Inc's Common Shares Buyback & Cancellation of 200 Billion Won

<ul>
<li>Three major positive factors for Samsung C&amp;T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting trading business earnings. </li>
<li>Shanghai lockdown remains a black box event and there are some increasing concerns that the China COVID induced lockdowns could result in a potential earnings miss for Samsung Electronics.</li>
<li>Samsung C&amp;T (028260 KS) has been outperforming Samsung Electronics (005930 KS). Samsung C&amp;T is flat for the year versus Samsung Electronics which is down 13.6% YTD.</li>
</ul>


Three major positive factors for Samsung C&amp;T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting trading business earnings. 
Shanghai lockdown remains a black box event and there are some increasing concerns that the China COVID induced lockdowns could result in a potential earnings miss for Samsung Electronics.
Samsung C&amp;T (028260 KS) has been outperforming Samsung Electronics (005930 KS). Samsung C&amp;T is flat for the year versus Samsung Electronics which is down 13.6% YTD.


Samsung C&T: Deep Discount NAV, Capital Shifting to Value/Holdcos, & Trading Business Boost

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> surpassed KRW400 billion sales last year, the highest since inception. The company targets more than doubling sales this year, through global expansion of cenobamate.</li>
<li>The company is expected to launch its third commercial drug, carisbamate (currently in phase 3 trial) in global market in 2025.  </li>
<li>On the back of robust 2021 financial performance, SK Biopharmaceuticals shares have recovered and reached to two-month high, thereby offering an attractive and confirming buying opportunity.</li>
</ul>



SK Biopharmaceuticals Co Ltd (326030 KS) surpassed KRW400 billion sales last year, the highest since inception. The company targets more than doubling sales this year, through global expansion of cenobamate.
The company is expected to launch its third commercial drug, carisbamate (currently in phase 3 trial) in global market in 2025.  
On the back of robust 2021 financial performance, SK Biopharmaceuticals shares have recovered and reached to two-month high, thereby offering an attractive and confirming buying opportunity.


SK Biopharmaceuticals (326030 KS): Highest Performance in 2021; Pipeline Progress Entails Visibility

South Korea

SK Biopharmaceuticals Co., Ltd. researches and develops new drugs. The Company develops and markets brain disorders treatment drugs, central nervous system disorders treatment drugs, and other products. SK Biopharmaceuticals markets its products worldwide.

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SK Biopharmaceuticals (326030 KS)

SK Inc: Solid Dividends, Ongoing Buyback, and Emphasis on Value Should Lead to Outperformance

Our base case target price of 276,567 won suggests a 37% upside from current levels for SK Inc. Our base case valuation assumes a 30% holdco discount.

Douglas Kim

SK Inc's Common Shares Buyback & Cancellation of 200 Billion Won

SK Inc's decision to buyback and cancel 200 billion won of common shares is a step in the right direction and the company abiding by its promises...

Douglas Kim

Samsung C&T: Deep Discount NAV, Capital Shifting to Value/Holdcos, & Trading Business Boost

Three major positive factors for Samsung C&T include deep discount NAV, capital shifting to value/holdcos, and higher commodity prices boosting...

Douglas Kim