2025. 2. 10. 14:37ㆍKorean Economy
Samsung Biologics has surpassed 82 trillion KRW in market capitalization, overtaking LG Energy Solution to become the third-largest publicly traded company in South Korea.
According to the Korea Exchange on the 9th, Samsung Biologics closed at 1.16 million KRW per share on the 7th, up 71,000 KRW (6.52%) from the previous trading session. With a market cap of 82.56 trillion KRW, the company has surpassed the 80 trillion KRW threshold for the first time since its listing in November 2016. This marks a significant increase from 67.5 trillion KRW at the end of last year, a gain of 15 trillion KRW. As a result, LG Energy Solution, previously ranked third in market cap, has now fallen to fourth place.
Stock Surge Driven by Legal Ruling and U.S. Policy Expectations
The recent rally in Samsung Biologics' stock is believed to be influenced by the acquittal of Samsung Electronics Chairman Lee Jae-yong in an appellate court case related to alleged accounting fraud at the company. Investors anticipate that Chairman Lee will further strengthen Samsung’s commitment to the biopharmaceutical industry, driving the stock price higher.
Additionally, expectations surrounding the potential reinstatement of the U.S. Biosecurity Law under a second Trump administration have also benefited Samsung Biologics. The proposed legislation, which aims to ban Chinese biotech firms from operating in the U.S., failed to pass the Senate last year but is now seen as likely to be revived. Given the Trump administration’s anticipated tougher stance on China, the bill’s resurgence appears increasingly probable.
If enacted, this law could provide a significant boost to South Korean contract development and manufacturing organizations (CDMOs) like Samsung Biologics. U.S. biotech companies that previously relied on Chinese CDMOs would be forced to seek alternative partners, potentially creating new business opportunities for Korean firms.
Positive Outlook from Securities Analysts
Securities analysts have expressed a positive outlook on Samsung Biologics’ stock. In a recent report, SangSangin Securities raised its target price from 1.26 million KRW to 1.31 million KRW. Sun-A Kim, a researcher at SangSangin Securities, stated, “The company is seeing clear growth in both contract orders and the number of research projects entering the market. Revenue and operating profit are expected to increase this year as well.”
Similarly, Mirae Asset Securities set a target price of 1.35 million KRW. Seung-min Kim, an analyst at Mirae Asset, noted, “With the completion of Plant 5 scheduled for April, additional contract orders are anticipated. Full capacity operation of Plants 1 to 3 in the first half of the year and the ramp-up of Plant 4 in the second half suggest a steady increase in revenue each quarter.”
Record-High Performance and Strong Growth Projections
Samsung Biologics is expected to continue its record-breaking financial performance this year. In 2023, the company reported an all-time high revenue of 4.55 trillion KRW and an operating profit of 1.32 trillion KRW. It became the first South Korean pharmaceutical or biotech firm to surpass 4 trillion KRW in annual revenue.
For 2024, Samsung Biologics has projected annual revenue growth of 20–25%, estimating total sales of approximately 5.57 trillion KRW. Hye-Joo Wi, a researcher at Korea Investment & Securities, predicted revenue of 5.33 trillion KRW and an operating profit of 1.61 trillion KRW, citing the ramp-up of Plant 4 as a key driver. While revenue from the newly built Plant 5 is expected to be reflected from Q2 2025, ongoing contract signings throughout the year are likely to strengthen long-term revenue expectations.