Brokerage : Mirae Asset Securities
Analyst : Mihwa Seo
Investment Rating : Buy (Maintain)
Target Price : KRW 230,000 (Upward)
Core Momentum : Value realization across key ADC assets through multiple 2026 clinical readouts, paving the way for organic technology transfers
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Target Price KRW 230,000 (Upward by 35% from KRW 170,000), Rating Buy (Maintain), Upside Potential 38.6% (Current price of KRW 165,900 as of 2026-01-23)
- Valuation Methodology: SOTP (Sum-of-the-Parts) applied across six pipeline assets (FX rate of KRW 1,450, Terminal Growth Rate 3%, WACC 8.2%, valuation base year shifted from 2025 to 2026)
- LCB14 (HER2 ADC) Value: KRW 1,474.7 Billion (China BLA filing expected within 2026)
- LCB84 (Trop2 ADC) Value: KRW 1,954.8 Billion (Phase 1 completion anticipated within the year; eligible for a USD 200 Million option exercise fee if Janssen executes prior to Phase 2 initiation)
- LCB71 (ROR1 ADC) Value: KRW 1,230.2 Billion (under development by CStone Pharmaceuticals)
- Preclinical Assets (LCB97, LCB02A, LNCB74) Value: Combined KRW 2,853.4 Billion
- Key Financials & Forecasts:
- 2023: Revenue KRW 34 Billion, Operating Profit KRW -81 Billion (OP Margin -238.2%), Net Profit KRW -74 Billion, EPS KRW -2,634, ROE -40.1%, P/B 12.1x
- 2024: Revenue KRW 126 Billion, Operating Profit KRW -21 Billion (OP Margin -16.7%), Net Profit KRW 8 Billion, EPS KRW 225, ROE 2.0%, P/E 483.5x, P/B 6.2x
- 2025F: Revenue KRW 154 Billion, Operating Profit KRW -41 Billion (OP Margin -26.6%), Net Profit KRW -21 Billion, EPS KRW -584, ROE -3.6%, P/B 10.9x
- 2026F: Revenue KRW 174 Billion, Operating Profit KRW 38 Billion (OP Margin 21.8%), Net Profit KRW 57 Billion, EPS KRW 1,569, ROE 9.6%, P/E 105.8x, P/B 9.5x
- 2027F: Revenue KRW 294 Billion, Operating Profit KRW 150 Billion (OP Margin 51.0%), Net Profit KRW 168 Billion, EPS KRW 4,577, ROE 23.7%, P/E 36.2x, P/B 7.5x
- Trading Indicators: Market Cap KRW 6,074 Billion, Outstanding Shares 37 Million shares, Floating Shares 69.9%, Foreign Ownership 11.1%, 52-Week High/Low KRW 196,100 / KRW 89,500
🚀 2. [Market Opportunities & Business Outlook]
- 2026 Clinical Milestones:
- B7-H4 ADC: PoC (Proof of Concept) data readout expected.
- ROR1 ADC (LCB71): Phase 1 interim data release anticipated.
- TROP2 ADC (LCB84): Phase 1 completion expected as early as year-end.
- HER2 ADC (LCB14): China regulatory filing targeted within 2026.
- Industry Trends & Platform Differentiation:
- Six years following Enhertu’s launch, managing resistance to topoisomerase inhibitors has emerged as a central therapeutic need in the ADC sector.
- Demonstrating efficacy in overcoming resistance mechanisms provides clear technological differentiation over existing commercialized platforms.
- Robust clinical results are projected to organically drive subsequent global out-licensing agreements.
📝 Editor’s Comment (Perspective)
The covering analyst views LigaChem Biosciences not through the lens of short-term timing uncertainties regarding deal execution, but as an advanced ADC biotech whose underlying pipeline value is sequentially confirmed through clinical data milestones. This perspective prioritizes human clinical validation and resistance-overcoming capabilities over speculative transaction timing when assessing long-term corporate valuation.
To verify whether this investment thesis continues to materialize, primary focus should be directed toward upcoming clinical data releases in 2026—including B7-H4 ADC PoC results, LCB71 Phase 1 interim data, and the operational progress toward LCB84 Phase 1 completion and China BLA filing for LCB14—as well as the subsequent execution of out-licensing deals. These milestones can be tracked via company IR presentations, medical congress disclosures, and official regulatory filings.
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Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
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