Samsung Biologics 2Q26 Preview: Exchange gains offset the impact of the strike, focus on production capacity and order progress (Goldman Sachs)
Goldman Sachs released a 2Q26 preview report on Samsung Biologics (207940.KS).
Goldman Sachs released a 2Q26 preview report on Samsung Biologics (207940.KS). The report pointed out that despite the impact of the strike, the company's 2Q26 earnings may remain resilient thanks to the exchange rate dividend of the Korean won's depreciation against the U.S. dollar. The report predicts that the negative impact of the strike will be more reflected in the third quarter, followed by recovery. In addition, the company announced a number of contract amendments in June, adding additional orders from pharmaceutical companies in Asia, the United States and Europe, totaling more than $160 million. The company's current valuation (31 times 12-month forward price-to-earnings ratio) has been significantly lower than the historical average, providing a good margin of safety. Investors should shift their focus from short-term strike risks to medium- and long-term orders and capacity expansion. One-sentence conclusion: Samsung Biologics has been disrupted by strikes in the short term, but with the support of strong orders and exchange rate dividends, the fundamentals remain solid, and the current low valuation provides a good opportunity for intervention. Positives/Constrains: Positives for Samsung Biologics (207940.KS). Foreign exchange gains and new orders are short-term bright spots. The market's concerns about strikes have basically priced in, but there are still doubts about the sustainability of long-term growth. Catalysts: 1) 2Q26 results conference call on July 23, focusing on quantification of the impact of the strike and 3Q26 guidance; 2) Plant 4/5/6 capacity utilization and new customer signing progress; 3) Order acquisition status of new businesses such as ADC, cell and gene therapy.