Good 2Q26; greater focus on US market penetration

研报英文原文证据摘录

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M

Update

August 11, 2026 10:09 AM GMT

Morgan Stanley & Co. International plc, Seoul Branch+

L&C Bio Co Ltd | Asia Pacific

Mi Hyun Kim

Equity Analyst

Good 2Q26; greater focus on

US market penetration

AlphaSignals Earnings Reaction

L&C Bio Co Ltd (290650.KQ, 290650 KQ)

Unchanged

Modest upside

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

S. Korea Healthcare | S. Korea

trading hours, but it has disclosed limited details (i.e., no GP, no SG&A).

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 11, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (bn)

EV, curr (bn)

Avg daily trading value (bn)

The key growth driver, Re2O, delivered sales growth of c.80% QoQ to c.W15bn in

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

2Q26 (no exact numbers provided), in line with our expectations.

EPS (W)**

Prior EPS (W)**

EPS (W)§

Revenue, net (W bn)

EBITDA (W bn)

ModelWare net inc (W

bn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

(5,612)

85

8

(138)

886

1,051

158

39

24

1,584

2,144

233

69

43

2,580

3,224

314

104

70

NM

7.6

1.0

(49.2)

188.8

0.1

(0.3)

1.5

71.7

6.0

15.0

12.1

38.7

0.0

(0.2)

(6.8)

40.1

5.3

20.2

15.1

21.6

0.1

1.5

(14.4)

24.6

4.3

29.3

21.3

13.8

0.1

3.7

(27.2)

Source: Company data, Morgan Stanley Research

Key Takeaways

L&C Bio posted better-than-expected preliminary earnings on Aug 11 during

OP margin was above expectations (Exhibit 1) due to Re2O sales increase. L&C

targets a 25% OP margin for 2026 and expects gradual margin increase over

quarters.

The announced equity financing is partly to support US penetration, but the

amount (W141bn) appears large, in our view, given L&C's good operating cash

flow.

L&C is pursuing the US FDA approval for Re2O as a human tissue product in

4Q26, which could be a key positive catalyst as the US represents the largest

market.

L&C maintains its Re2O annual sales target of W70bn (vs. c.W6bn in 2025) and

Overweight

In-Line

W103,000

62

W63,500

W125,000-29,100

25

W1,563

W1,532

W37

…