Brokerage : iM Securities
Analyst : Jaewon Jeong
Investment Rating : Buy (Maintain)
Target Price : KRW 200,000 (Maintain)
Core Momentum : Continued clinical data readouts across major ADC pipelines supported by over two years of R&D funding, alongside potential new global out-licensing deals
📊 1. [Valuation & Key Financial Metrics]
- Target Price & Rating: Target Price KRW 200,000 (Maintain), Rating Buy (Maintain), Upside Potential 44.7% (Based on closing price of KRW 138,200 on 2026-05-20)
- Target Enterprise Value Valuation Breakdown: Total Target Valuation of KRW 7,479.7 Billion
- Pipeline Value: KRW 5,201.8 Billion (Reflecting values of HER2, ROR1, TROP2, and B7-H4)
- Platform Value: KRW 2,277.9 Billion
- Key Financial Forecasts:
- 2025: Revenue KRW 142 Billion, Operating Profit KRW -106 Billion, Net Profit KRW -74 Billion, EPS KRW -2,029, BPS KRW 13,865, PBR 12.5x, ROE -13.2%
- 2026E: Revenue KRW 201 Billion, Operating Profit KRW -108 Billion, Net Profit KRW -100 Billion, EPS KRW -2,738, BPS KRW 11,679, PBR 11.8x, ROE -21.4%
- 2027E: Revenue KRW 211 Billion, Operating Profit KRW -99 Billion, Net Profit KRW -87 Billion, EPS KRW -2,390, BPS KRW 9,840, PBR 14.0x, ROE -22.2%
- 2028E: Revenue KRW 310 Billion, Operating Profit KRW -10 Billion, Net Profit KRW 5 Billion, EPS KRW 143, BPS KRW 10,535, PER 964.1x, PBR 13.1x, ROE 1.4%, EV/EBITDA 790.4x
- Stock Indicators: Capital Stock KRW 18 Billion, Outstanding Shares 37.02 Million shares, Market Cap KRW 5,116 Billion, Foreign Ownership 11.2%
🚀 2. [Market Opportunities & Business Outlook]
- R&D Strategy & Financial Stability:
- Rising R&D expenditure is driven by human clinical data generation for in-house and partnered pipelines (linkers/payloads), aiming to demonstrate technological superiority and differentiate from Chinese ADC competitors.
- Existing cash reserves provide a sufficient financial runway to support R&D activities for more than two years.
- ADC Pipeline Development Status & Catalysts:
- HER2 ADC (China, Fosun Pharma): Phase 3 completion and final data readout expected in 2H.
- HER2 ADC (Global, Iksuda): Phase 1b interim data readout expected (prior Phase 1a recorded 4 partial responses and 1 stable disease out of 5 post-Enhertu patients).
- ROR1 ADC (Global, CStone): Phase 1b interim data readout expected (CStone reported 100% ORR and 95.5% CR in 22 patients).
- CD19 ADC (Global, Iksuda): Ongoing Phase 1a with interim data release expected.
- TROP2 ADC (Global, Janssen): Ongoing Phase 1/2 trial.
- B7-H4 ADC (Global, NextCure): Ongoing Phase 1 trial with interim data release expected in 2H.
- Additional Assets: Global Phase 1 entry for L1CAM ADC (licensed to Ono Pharmaceutical) and clinical trials entry for proprietary pipelines (CLDN18.2 ADC, BCMA ADC).
- Out-Licensing Potential & Re-rating Factors:
- Following in-licensing agreements with DanBio Therapeutics, Y-Biologics, NovaRock, and Go Therapeutics since the 2024 Ono deal, securing new out-licensing agreements with global big pharma is anticipated to address market overhangs.
- Structuring new platform deals (such as expanding access to the Biobest platform) could drive significant enterprise valuation re-rating.
📝 Editor’s Comment (Perspective)
The covering analyst views LigaChem Biosciences not as a company bounded by short-term R&D cost increases or earnings volatility, but as an advanced ADC biotech that is leveraging its robust cash runway to systematically validate its proprietary platforms through clinical data generation. This perspective places greater emphasis on long-term technological differentiation and pipeline commercialization over immediate quarterly financial metrics.
To verify whether this investment thesis continues to materialize, attention should be directed toward the upcoming clinical data readouts across partnered assets (including Fosun, Iksuda, and CStone) in the second half, as well as the actual execution of new global out-licensing agreements. These operational milestones can be monitored through future earnings releases, company IR presentations, and official regulatory filings.
📢 Disclaimer & Source
Source: This content has been structured and newly written based on officially disclosed financial facts and data from brokerage reports.
Investment Risk Notice: This content is provided for informational and linguistic reference purposes only. Under no circumstances does it constitute financial advice or a recommendation to buy or sell any specific securities. All investment decisions and financial responsibilities rest entirely with the investor.
Contact: Compliance and Copyright Inquiries (ksb220805@gmail.com)
