April 24, 2024

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Celltrion Healthcare has gravely missed market expectations in the fourth quarter last year, said Hana Financial Investment on Feb. 25 downgrading the recommendation to a “hold” from a “buy” and lowering the target price to 70,000 won (US$62.46) from 85,000 won.

Its revenue in the period dropped 59.3 percent on-year to 188.7 billion won and operating loss came in at 68.9 billion won turning to red from a year ago. As prices in the US and Europe tumbled gross profit margin fell to 9.6 percent last year from 2017’s 24.3 percent, said analyst Seon Min-jeong.

Adjustment in shipments to modify contract terms with its European partner has also undermined its revenue. Celltrion Healthcare, however, is demanding to amend the unbalanced terms and when changes are made, it will be able to recover in the latter half, she said. 

By Hwang You-mee (glamazon@heraldcorp.com)