Corporate Logo(source: celltrion.com)
Kiwoom Securities stated on April 15 that Celltrion (068270) is expected to miss market expectations for its first-quarter results, citing the impact of proactive measures taken in response to U.S. tariffs.
In a Q1 earnings preview report released the same day, analyst Heo Hye-min at Kiwoom Securities wrote, “Earnings are likely to fall short of expectations due to early responses to tariffs, front-loaded contract manufacturing (CMO) supply, and weak performance from legacy products such as Remsima.”
The brokerage lowered its target price for Celltrion from 240,000 won to 230,000 won.
Heo estimated Celltrion’s consolidated revenue for the first quarter at 879.2 billion won, up 19% year-on-year, with operating profit surging 961% to 163.8 billion won. However, these figures fall short of the market consensus, which projects 982.2 billion won in revenue and 241.7 billion won in operating profit.
She added, “Although the cost ratio in Q4 2024 stood at 48.9% due to one-off factors related to the third plant—such as expenses from responding to an FDA inspection—we had initially expected an improvement in Q1. However, unexpected tariff-related effects and CMO production factors are likely to result in a similar cost ratio of around 48.4%.”
Heo also suggested that an increase in drug substance (DS) supply volume, due to preemptive tariff strategies, and the use of local drug product (DP) CMO facilities had an impact. “This likely necessitated inventory adjustments for pre-supplied DS volumes, and additional labor costs may have been incurred in preparation for operations at the third plant,” she noted.
“Combined with temporary revenue weakness from inventory adjustments in legacy products such as Remsima, Q1 earnings are expected to be somewhat weaker compared to the previous quarter,” she concluded.
*[KOSPI]Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 34.84 trillion won (as of April 14, 2025, closing price).
Corporate Logo(source: celltrion.com)
Kiwoom Securities stated on April 15 that Celltrion (068270) is expected to miss market expectations for its first-quarter results, citing the impact of proactive measures taken in response to U.S. tariffs.
In a Q1 earnings preview report released the same day, analyst Heo Hye-min at Kiwoom Securities wrote, “Earnings are likely to fall short of expectations due to early responses to tariffs, front-loaded contract manufacturing (CMO) supply, and weak performance from legacy products such as Remsima.”
The brokerage lowered its target price for Celltrion from 240,000 won to 230,000 won.
Heo estimated Celltrion’s consolidated revenue for the first quarter at 879.2 billion won, up 19% year-on-year, with operating profit surging 961% to 163.8 billion won. However, these figures fall short of the market consensus, which projects 982.2 billion won in revenue and 241.7 billion won in operating profit.
She added, “Although the cost ratio in Q4 2024 stood at 48.9% due to one-off factors related to the third plant—such as expenses from responding to an FDA inspection—we had initially expected an improvement in Q1. However, unexpected tariff-related effects and CMO production factors are likely to result in a similar cost ratio of around 48.4%.”
Heo also suggested that an increase in drug substance (DS) supply volume, due to preemptive tariff strategies, and the use of local drug product (DP) CMO facilities had an impact. “This likely necessitated inventory adjustments for pre-supplied DS volumes, and additional labor costs may have been incurred in preparation for operations at the third plant,” she noted.
“Combined with temporary revenue weakness from inventory adjustments in legacy products such as Remsima, Q1 earnings are expected to be somewhat weaker compared to the previous quarter,” she concluded.
*[KOSPI]Celltrion(068270) engages in the development and production of various therapeutic proteins, including anticancer drugs, based on biotechnology and animal cell mass culture technology. Market capitalization is 34.84 trillion won (as of April 14, 2025, closing price).