ST Pharm (237690) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated revenue rose 9.4% YoY to KRW 61.2bn; operating profit fell 38.5% to KRW 4.1bn, while net profit increased 185.1% to KRW 9.6bn.

• 9M 2024 revenue was ₩158.0bn and operating income ₩4.9bn, both down YoY; net income rose to ₩20.0bn, including material fair-value gains.

• Commercialized project orders supported Q3 sales; slow nonclinical demand and revenue adjustments weighed on CRO results.

• Oligonucleotide CDMO demand and capacity expansion remain central growth drivers; planned annual capacity is 14 mol after expansion, versus current capacity of 6.4 mol.

Financial highlights

• Q3 revenue was KRW 61.2bn, COGS KRW 40.7bn, gross profit KRW 20.5bn and operating profit KRW 4.1bn; SG&A was KRW 16.4bn and R&D KRW 6.1bn.

• Q3 consolidated net profit was KRW 9.6bn; separate revenue was KRW 57.2bn, operating profit KRW 9.8bn and net income KRW 15.9bn.

• 9M revenue was ₩158.0bn versus ₩164.4bn YoY; operating income was ₩4.9bn versus ₩12.0bn, and net income was ₩20.0bn versus ₩7.5bn.

• 9M operating cash flow was ₩53.7bn; cash and cash equivalents were ₩41.0bn at quarter-end.

Outlook and guidance

• One oligonucleotide project approval was anticipated in 2H 2024; one oligonucleotide and one small-molecule project approval were anticipated in 2025.

• The second oligo building is under construction; planned expansion targets more than 7.6 mol of additional capacity and 14 mol annually after 2026.

• STP0404 is in US Phase 2a, with interim results expected in H1 2025; STP1002 completed Phase 1, with follow-up trial strategy to be developed.

• Backlog was USD/CHF 205.983m equivalent at quarter-end, compared with 367.266m delivered against 573.249m contracted; delivery dates and amounts may change with customer circumstances.