Merck KGaA (AO) | Buy | Guidance raise to start the year, Process Solutions buoyant

研报英文原文证据摘录

Merck KGaA (AO) | Buy | Guidance raise to start the year, Process Solutions buoyant

or de-rating, could lower our valuation for the division,

Positive earnings revisions from here could drive a significant re- Merck's largest.

rating. Semis and notably liquid crystals are driven by cyclical factors -

Catalysts a further macro slowdown could decelerate these units.

Better confidence in Life Science business rebound, starting China's pharma policy and pricing are unpredictable. Merck has

now. significant exposure there. Glucophage VBP's impact seems to

H2 2026: US approvals of Pergoveris and later pimicotinib. be manageable, but pricing effects could get worse in the future.

Recovery of Semis capex projects..

Key data charts

Price performance Sales split by region Sales split by division

SWOT analysis

Strengths Weaknesses

Leading Life Science unit, still strong mid-term structural demand. Lack of a pharma pipeline.

Big emerging markets presence. Negative mix effect on the margin in pharma.

Strong balance sheet, can do M&A in both Life Science and Pharma. Small R&D budget compared to the leading players in immuno-oncology.

In Electronics: strength and growth in Semiconductors. Liquid Crystals declining due to Chinese competition.

Opportunities Threats

Process Solutions: capitalise on flexible manufacturing, Alzheimers. Cyclical nature of Liquid Crystals and semiconductors.

Transform market perception of major semiconductor growth potential. Continued requirement for R&D spend in competitive segments.

Refill pharma pipeline to defuse negative sentiment. Price pressure on older pharma products in e.g. China.

M&A in life science can truly create value. Market expectations for Life Sciences margin expansion look full.

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