Samsung Biologics’ credit rating upgraded to AA- Customer base expansion and business diversification cited as reasons for upgrade
Translated by Ryu Ho-joung 공개 2022-05-10 08:20:29
이 기사는 2022년 05월 10일 08:13 thebell 에 표출된 기사입니다.
Korea Ratings upgraded its credit rating on Samsung Biologics to AA- with a negative outlook on April 28, only eight months after the contract manufacturing organization (CMO) was first rated at A+ with a positive outlook in August last year.The South Korean credit rating agency cited the expansion of the company’s customer base as one of the reasons for the upgrade. Samsung Biologics signed long-term contracts with global pharmaceutical companies such as Moderna, AstraZeneca and Roche thanks to increased demand for contract manufacturing in the aftermath of the Covid-19 pandemic.
Revenue almost tripled to 1.56 trillion won ($1.22 billion) in 2021 from 535.8 billion won a year ago. Operating profit soared to 537.3 billion won, with an operating margin of 34.3%. Earnings before interest, tax, depreciation and amortization (EBITDA) margin also rose to 44.6%.
Samsung Biologics is currently building its fourth plant in Songdo, Incheon, where it has three factories with a combined production capacity of 364,000L a year. Korea Ratings expected the company’s fourth plant, which will become partially operational in October, to help enhance stability of operating cash flow.
The CMO has also diversified its business by taking over biosimilar manufacturer Samsung Bioepis as its wholly owned subsidiary. Samsung Bioepis’ operating profit margin and EBITDA margin were 22.8% and 30.4% respectively in 2021.
Despite continued capital spending, Samsung Biologics has no long-term debt thanks to money raised through its 3.2 trillion won capital increase in April. Of the proceeds, 2 trillion won will be spent on capital expenditure and the remaining amount will be used for the acquisition of Samsung Bioepis.
Samsung Biologics’ strong cash position and operating cash flow are credit positive, Korea Ratings said. The company’s cash reserves rose to 1.34 trillion won at the end of 2021 from 828.9 billion won a year ago driven by a sharp increase in operating profits.
Korea Ratings added the company’s debt levels need to continue to be monitored due to the uncertainty related to the development of biosimilars and new drugs. (Reporting by Ji-won Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감