Brokerage : Mirae Asset Securities
Analyst : Mihwa Seo
Investment Rating : Buy (Maintain)
Target Price : KRW 170,000 (Maintain)
Core Momentum : Value expansion driven by abundant clinical readouts across clinical-stage assets, upcoming commercialization filing, and platform PoC validation
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Target Price KRW 170,000 (Maintain), Rating Buy (Maintain), Upside Potential 53.7% (Current price of KRW 110,600 as of 2025-05-22)
- Valuation Methodology: SOTP (Sum-of-the-Parts) valuation based on six new drug pipeline assets
- LCB14 (HER2 ADC) Value: KRW 1.3 Trillion (China regulatory approval filing expected within 2025)
- LCB84 (Trop 2 ADC) Value: KRW 1.8 Trillion (Phase 1 completion expected as early as year-end)
- LCB71 (ROR1 ADC) Value: KRW 758.8 Billion (under development by CStone Pharmaceuticals)
- Preclinical Assets (LCB97, LCB02A, LNCB74) Value: Combined KRW 1.8 Trillion
- 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 163 Billion, Operating Profit KRW 16 Billion (OP Margin 9.8%), Net Profit KRW 48 Billion, EPS KRW 1,309, ROE 7.5%, P/E 84.5x, P/B 5.9x
- 2026F: Revenue KRW 174 Billion, Operating Profit KRW 38 Billion (OP Margin 21.8%), Net Profit KRW 59 Billion, EPS KRW 1,620, ROE 8.5%, P/E 68.3x, P/B 5.4x
- 2027F: Revenue KRW 294 Billion, Operating Profit KRW 150 Billion (OP Margin 51.0%), Net Profit KRW 163 Billion, EPS KRW 4,446, ROE 20.2%, P/E 24.9x, P/B 4.4x
- Trading Indicators: Market Cap KRW 4,049 Billion, Outstanding Shares 37 Million shares, Floating Shares 69.4%, Foreign Ownership 11.0%, 52-Week High/Low KRW 140,000 / KRW 61,900, KOSDAQ 717.67pt
🚀 2. [Market Opportunities & Business Outlook]
- ADC Sector Dynamics & Market Focus:
- Expanding public listings of ADC peers, including IntoCell’s domestic listing and Duality Biologics’ Hong Kong listing, heightening global investor focus on the ADC space.
- Key Clinical Milestones & Readout Schedule:
- LCB14 (HER2 ADC): Regulatory submission in China expected in 2H25, along with Phase 1 clinical data release from Australian trials in 2H25.
- LCB84 (Trop 2 ADC): Phase 1 completion and initiation of Phase 2 expected in 2H25.
- LCB71 (ROR1 ADC): Phase 1b interim results scheduled for presentation at the American Society of Hematology (ASH) in December.
- Platform Licensing Follow-Up & Milestones:
- Rapid progress demonstrated across partnered pipelines post-licensing with Ono Pharmaceutical, Iksuda, and Sotio.
- Validation of platform-derived candidates confirmed at AACR via presentations on SOT106 (LRRC15 ADC), IKS04 (CA242 ADC), and IKS012 (FOLR1 ADC).
- Designation of the first target under the October 2024 Ono Pharmaceutical platform agreement, resulting in target exclusivity fee receipt in 1Q25.
📝 Editor’s Comment (Perspective)
The covering analyst views LigaChem Biosciences as a maturing ADC leader transitioning from initial big pharma licensing and clinical entry into the next development stage defined by commercialization regulatory filings and platform Proof of Concept (PoC). This perspective emphasizes tangible progress toward commercial drug candidates and follow-up milestone monetization by platform partners over past out-licensing deal volume alone.
To verify whether this investment thesis continues to materialize, primary focus should be directed toward the actual regulatory BLA submission of LCB14 in China in 2H25, the Phase 1b interim data release for LCB71 at ASH in December, the completion of LCB84 Phase 1 alongside Phase 2 entry, and subsequent milestone receipts from platform partners including Ono, Iksuda, and Sotio. These milestones can be tracked via future corporate IR disclosures, regulatory submission filings, and official periodic reports.
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