Binex Signs KRW 20.8 Billion Biopharmaceutical Supply Contract
Binex has entered into a commercial biopharmaceutical manufacturing and supply agreement with a global biopharmaceutical company, valued at KRW 20.8 billion. The contract period is from December 1, 2025, to June 30, 2027, a total of 1 year and 7 months. This represents a significant 16.01% of Binex’s recent annual revenue.
Contract Significance and Growth Potential
- Bio CDMO Business Expansion: This contract accelerates the growth of Binex’s bio CDMO business and enhances the visibility of future revenue growth, adding to the existing order backlog of KRW 121.1 billion.
- Strengthened Global Partnership: Collaboration with a global biopharmaceutical company validates Binex’s technological capabilities and increases the potential for future contracts.
- Increased Revenue and Profitability: The contract is expected to contribute to increased revenue and profitability, reflecting in financial results from the second half of 2025.
Investment Risk Factors to Consider
- Exchange Rate Volatility: Potential increase in raw material import costs.
- Interest Rate Volatility: Possibility of increased interest burden due to higher debt ratio.
- Production and Quality Control: Need to maintain high levels of production technology and quality control.
- Intensifying Market Competition: Increased competition within the global CDMO market.
Investment Strategy and Target Price
Based on Binex’s positive growth outlook, we issue a “Buy” recommendation. The short-term target price is KRW 25,000 (3 months), and the fair target price is KRW 30,000 (12 months). Considering the growth potential of the bio CDMO business, the stable chemical pharmaceutical segment, and the positive market environment, the current stock price appears undervalued. However, investors should continuously monitor the risk factors mentioned above and adjust their investment strategies accordingly.