Samsung Biologics: Pure-play CDMO, undervalued growth; initiate at Buy

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Samsung Biologics: Pure-play CDMO, undervalued growth; initiate at Buy

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Samsung Biologics

Pure-play CDMO, undervalued growth;

initiate at Buy

Initiating Coverage: BUY | PO: 1,850,000 KRW | Price: 1,345,000 KRW

New Buy; dominant leader in supply-constrained biologics 21 July 2026

We initiate coverage on Samsung Biologics at Buy, PO of W1.85mn (38% potential Equity

upside). As the world’s largest biologics CDMO based on 845kL mammalian

manufacturing capacity (set for large-scale therapeutic antibody production), we expect Zoe (Jung-ae) Chun >> Research Analyst

Samsung Biologics to deliver solid 3Y 18% EPS CAGR in ’25-28E, led by: 1) structural Merrill Lynch (Seoul)

biologics demand growth (+9% p.a.); 2) aggressive capacity expansion (845kL to 1.4mL +82zoe.chun@bofa.com2 3707 0556

by ‘32E); and 3) superior profitability, with EBITDA margins of 52% in ‘26–28E, 2x peers' David Li >>

mid-/high-20% levels. Research Analyst

Merrill Lynch (Hong Kong)

Structural outsourcing, share gain via capacity expansion davidbo.li@bofa.com

Charlie Haywood >>

While biologics demand is expected to grow at a high-sd% CAGR, CDMOs can outgrow Research Analyst

the market as outsourcing penetration rises (>50% by ’28E). As biologics manufacturing MLI (UK)

charlie.haywood@bofa.com

becomes more capital-intensive and complex, clients increasingly prioritize R&D and

Kei Takeuchi >>

outsource production. The company’s unmatched scale and execution should support Research Analyst

cost-efficient, rapid delivery, and continued share gains amid capacity expansion. BofAS Japan

kei.takeuchi@bofa.com

>>Above-industry growth; solid 16% 3-year revenue CAGR Neha Manpuria

Research Analyst

Following the spin-off of Samsung Epis Holdings in Nov’25, Samsung Biologics has BofAS India