Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Samsung- SamsungBiologics Co LtdBiologics(207940.KS)Co Ltd (207940.KS)

Well positioned in a growing biologics CDMO industry

PRICE TARGET W1,988,000 OVERWEIGHT THESIS

Base case, discounted cash flow model. We think this method best captures the company's ▪Samsung Biologics became the global No.

sustainable growth over the longer term. 1 biologics CDMO in terms of capacity with

Key assumptions: the operation of Plant 5, which came

WACC 6.7%, including a 7.8% cost of equity (beta 0.8, risk-free rate 3.0%, risk premium onstream from April 2025.

6.0%) ▪We forecast that the company's biologics

4.5% terminal growth rate CDMO sales will double to W9.3tn in 2030

(at a 15% CAGR, 2025-30e). W2,127,184

OW rating on the stock relative to ourConsensus Price Target Distribution W1,650,000.00 W2,306,304.00 ▪Our coverage reflects the strong presence of MS PT

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates Samsung Biologics in the growing biologics

CDMOs.

▪Valuation also remains attractive.

RISK REWARD CHART

Consensus Rating Distribution

KRW 100%Overweight

W2,508,000W2,508,000(+80.95%)W2,508,000(+80.95%)(+80.95%) 0% Equal-weight

0% Underweight

2400000 MS Rating

W1,988,000W1,988,000(+43.43%)W1,988,000(+43.43%)(+43.43%) Source: Refinitiv, Morgan Stanley Research

W1,386,000W1,386,000W1,386,000 Risk Reward Themes

1200000 Secular Growth: Positive

W1,136,000W1,136,000(-18.04%)W1,136,000(-18.04%)(-18.04%) Self-help: Positive

View descriptions of Risk Rewards Themes here

JUN '25 DEC '25 JUN '26 JUN '27

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research

BULL CASE W2,508,000 BASE CASE W1,988,000 BEAR CASE W1,136,000