Shares of Samsung Biologics Co., a biopharmaceutical business arm of Samsung Group, hit its highest level since its listing on the South Korea’s main Kospi bourse in November 2016 amid growing expectations on its entry into the Kospi 200 index and rosy outlook.

On last Friday, shares of Samsung Biologics rose 1.09 percent from the previous trading day to end at an all-time high of 231,500 won. They reached record highs for three consecutive trading days from May 31 at 220,000 won and June 1 at 229,000 won.

Samsung Biologics shares have been extending rally since May after dipping to the lowest at the end of April when Samsung Electronics Co. announced that it ditched the idea of breaking up the company into a holding and business entity. They surged 25.7 percent in May alone and recorded gain of 10.9 percent between May 22 and May 26. They also jumped 8.4 percent from May 29 to June 2.

The recent bullish run is largely owed to its improved earnings in the first quarter this year and high expectations on better performance for the rest of the year. The company delivered its first profit of 3.4 billion won ($3.02 million) in the first three months of 2017 and posted 107.6 billion won in sales, up 2.0 percent from the previous quarter. It reported a net loss of 33.1 billion won due to investment and clinical costs at its biosimilar-developing subsidiary Samsung Bioepis, but it was much lower than 57 billion won in loss it had recorded in the previous three months.

Market analysts believe that its earnings would improve further this year given that construction of its third plant in Songdo, Incheon, is near completion. Upon completing the third plant next year, Samsung Biologics would become the world’s biggest contract drug manufacturer with combined capacity of 360,000 liters.

By Yoon Jin-ho

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]