Samsung Biologics reclaims “Emperor Stock” status

Samsung Biologics Headquarters. [Courtesy of Samsung Biologics]

Samsung Biologics shares surged past 1 million won ($752) on Monday, reclaiming their status as an “Emperor Stock” for the first time in three years. Samsung Biologics was trading at 1 million won as of 9:13 a.m., up 3.95 percent from the previous session. The stock hit a 52-week high of 1,002,000 won earlier in the day.

This is the first time Samsung Biologics topped the 1 million won mark since August 23rd, 2021, when it closed at 1,009,000 won. The stock’s record high, adjusted for stock splits, stands at 1,034,746 won.

The term “Emperor Stock,” is used to describe stocks trading above 1 million won per share, and they have virtually disappeared from the South Korean market. The last stock to hold the title was EcoPro, which hit the 1,026,000 won mark on September 11th, 2022, in the Kosdaq market.

Samsung Biologics posted an operating profit of 434.5 billion won for the second quarter of 2024, up 71.45 percent compared to the same period during the previous year. Its revenue also grew by 33.56 percent to 1.15 trillion won.

“Samsung Biologics’ contract manufacturing orders have grown from $3.1 billion in 2016 to $12 billion in 2022, a fourfold increase. If all the products under contract are successfully commercialized, the order backlog could increase to $23.5 billion,” SK Securities analyst Lee Sun-kyung said. Lee initiated coverage of Samsung Biologics with a “buy” rating and a target price of 1.2 million won.

In other market news, Mirae Corporation shares plummeted following the company’s announcement of a large-scale rights offering. Mirae shares traded at 1,385 won as of 9:43 a.m., down 19.57 percent, and fell as low as 1,261 won earlier in the session.

The company disclosed its plan to raise 41 billion won via a shareholder-priority offering to fund facility investments on Monday.