Celltrion (068270.KS) said Thursday it will actively explore measures to enhance shareholder value as its stock price continues to decline despite strong recent earnings. The announcement has drawn attention to the possibility that Celltrion may once again unveil share buyback and cancellation plans or expand dividends.
In a "Letter to Shareholders" posted on its website that day, Celltrion said, "Due to external factors such as geopolitical uncertainty in the Middle East, increased volatility in international oil prices, and concentration of supply and demand in certain industry sectors, the corporate value of the broader bio and pharmaceutical sector has not been adequately recognized." The company added, "Celltrion's corporate value also remains in an excessively undervalued range, and management is taking this very seriously."
The company is closely reviewing market conditions and the potential erosion of shareholder value, and plans to comprehensively examine measures to enhance shareholder value together with major shareholders if the situation persists. "As we operate an export-oriented business, exchange rates do not pose a risk, and our therapeutics-focused business portfolio has low sensitivity to economic cycles," a Celltrion official said. "We will share second-quarter earnings as quickly and transparently as possible, and continue shareholder-friendly policies that meet shareholder expectations based on market monitoring."
Celltrion posted first-quarter consolidated revenue of 1.145 trillion won and operating profit of 321.9 billion won, up 36.0% and 115.4% from a year earlier, respectively. However, the stock has been unable to break out of the 180,000 won range. Celltrion closed at 182,500 won on Thursday, down 0.4% from the previous trading day.
