Brokerage : Eugene Investment & Securities
Analyst : Haesun Kwon
Investment Rating : BUY (Maintain)
Target Price : KRW 160,000 (Maintain)
Core Momentum : Sustained net profit profitability backed by rising licensing revenues alongside aggressive R&D execution and multi-pipeline clinical advancements across 2025-2026
📊 1. [Valuation & Key Financial Metrics]
- Investment Rating & Target Price: Rating BUY (Maintain), Target Price KRW 160,000 (Maintain), Current Price KRW 118,300 (As of 2025-02-14)
- Operating Profit Estimate Revision: 2025E Operating Profit revised to KRW -8 Billion (from KRW -12 Billion), 2026E Operating Profit revised upward to KRW 30 Billion (turning to profit from KRW -22 Billion)
- Financial Forecasts & Historicals:
- 2023A: Revenue KRW 34 Billion, Operating Profit KRW -81 Billion, Pre-tax Profit KRW -77 Billion, Net Profit KRW -75 Billion, EPS KRW -2,664, ROE -40.0%, PBR 12.3x
- 2024P: Revenue KRW 126 Billion, Operating Profit KRW -21 Billion, Pre-tax Profit KRW 9 Billion, Net Profit KRW 8 Billion, EPS KRW 214, PER 553.8x, PBR 6.8x, ROE 2.0%
- 2025E: Revenue KRW 205 Billion, Operating Profit KRW -8 Billion, Pre-tax Profit KRW 17 Billion, Net Profit KRW 12 Billion, EPS KRW 326 (Growth +52.6%), PER 362.9x, PBR 6.7x, ROE 1.9%
- 2026E: Revenue KRW 283 Billion, Operating Profit KRW 30 Billion, Pre-tax Profit KRW 55 Billion, Net Profit KRW 49 Billion, EPS KRW 1,352 (Growth +314.6%), PER 87.5x, PBR 6.2x, ROE 7.4%, EV/EBITDA 109.7x
- Stock Metrics: Market Cap KRW 4,331 Billion, Outstanding Shares 36,610 Thousand shares, 52-Week High/Low KRW 143,600 / KRW 51,400, 52-Week Daily Beta 1.26, 60-Day Avg Daily Trading Value KRW 83.2 Billion, Foreign Ownership 10.1%, Dividend Yield (2024E) 0.0%, Major Shareholders Pan Orion Corp. Limited & 10 affiliated parties (29.6%), Treasury Stock Trust & 1 affiliated party (0.5%)
🚀 2. [Market Opportunities & Business Outlook]
- Earnings Outlook & Financial Resilience:
- Following revenue of KRW 125.9 Billion in 2024 (reflecting licensing income), the net profit profitability trend is expected to continue in 2025 supported by expanding tech transfer income despite aggressive R&D investment.
- Pipeline Clinical Roadmap (2025–2026):
- Overall R&D valuation expansion driven by 5 ADC pipelines in Phase 1 in 2025, expanding to 8+α pipelines in 2026 (2+α IND filings, 3 Phase 1 initiations, 3 Phase 2 entries).
- ① [LCB84] TROP2-ADC: Flagship pipeline; indication expansion clinical trial expected to initiate in 2H25.
- ② [LCB71] ROR1-ADC: Entered global Phase 1b; partner CSTONE is pursuing global out-licensing.
- ③ [LCB97] L1CAM-ADC: Licensed to Ono Pharmaceutical in October 2024 with milestone inflows beginning in 4Q24; global Phase 1 initiation expected in 2026.
- ④ [LNCB74] B7H4-ADC: Entered global Phase 1; partner Nextcure is pursuing global out-licensing.
- ⑤ [LCB14] HER2-ADC: China NDA submission expected in 2025 followed by commercialization in 2026; global Phase 1b initiation.
- ⑥ [LCB39] STING Agonist: Presentation scheduled for AACR 2025, targeting global Phase 1 trial entry in 2026.
📝 Editor’s Comment (Perspective)
The covering analyst views LigaChem Biosciences as a front-tier biotech capable of preserving bottom-line profitability through licensing income even amidst aggressive R&D investments, while systematically expanding its pipeline value through continuous clinical progression. This perspective places greater significance on the financial self-sustainability of its licensing business model and the expanding clinical footprint across multiple ADC programs over near-term cost burdens.
To verify whether this investment thesis continues to materialize, primary focus should be directed toward LCB14’s China NDA filing and global Phase 1b progress, the initiation of indication expansion trials for LCB84 in 2H25, potential out-licensing deals for LCB71 and LNCB74 via partners (CSTONE, Nextcure), and the continuation of net profitability supported by milestone inflows from partners like Ono Pharmaceutical. These milestones can be tracked via future earnings releases, corporate IR updates, medical congress presentations, and official regulatory disclosures.
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