"EuBiologics Seen Rebounding in Q3 Earnings"

SangSangin Securities said on the 27th that EuBiologics is expected to post a rebound in third-quarter earnings this year, driven by a recovery in exports of its main product, cholera vaccines.

In a report released that day, Ha Tae-ki, an analyst at SangSangin Securities, estimated EuBiologics' third-quarter revenue at KRW 47.9 billion, up 16.5% from a year earlier, and operating profit at KRW 21.1 billion, up 11.5%. He forecast that earnings would improve more substantially from the third quarter as shipments recovered in the second half of the year, following a slowdown caused by lower cholera vaccine exports in the first half.

EuBiologics posted revenue of KRW 48.9 billion and operating profit of KRW 10.8 billion in the first half of this year, down 35.5% and 61.7%, respectively, from a year earlier. The results were affected by a base effect, as cholera vaccine exports had temporarily surged in the first half of last year. SangSangin Securities said the base effect had eased in the second half and exports were recovering as the transition from the existing Euvichol-Plus to the more price-competitive Euvichol-S was completed. As a result, it expects third-quarter cholera vaccine revenue to reach KRW 47.4 billion, up 16.5% from a year earlier.

The commercialization of new vaccines is also drawing attention as a medium- to long-term growth driver. In August, EuBiologics received WHO prequalification (PQ) for its typhoid conjugate vaccine, EuTYPH-C. The company had previously completed Phase 3 clinical trials in the Philippines and Africa and received approval from the Ministry of Food and Drug Safety in July last year to manufacture the product for export.

EuBiologics is currently conducting Phase 3 clinical trials of its pentavalent meningococcal vaccine in Africa, with plans to enter the public market in 2028. It is also seeking to advance its shingles vaccine, EuHZV, into Phase 2 clinical trials after completing a Phase 1 trial in South Korea. The company is continuing development of its Alzheimer's therapeutic vaccine, PADIVAX, after submitting an application for an investigational new drug (IND) trial in South Korea in August.

"EuBiologics' estimated price-to-earnings ratio (PER) for this year is around 6.9 times, meaning the stock is undervalued relative to its growth potential," said Ha Tae-ki, an analyst at SangSangin Securities. "In particular, the recovery in cholera vaccine sales and the launch of a typhoid vaccine next year are key drivers of earnings growth."

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