2024-02-03 12:47:13
Choco Pie on display at the supermarket. [사진 제공 = 연합뉴스]
“I had chocolate pie this morning. “The rate of return is not good, so I have to eat the Choco Pie of Tears.”
This is a complaint from a shareholder that was recently posted on the Orion stock discussion room. This is because when Orion announced that it was entering the bio business, investor suspicions increased and the stock price fell significantly. Even the stock market seems skeptical regarding the synergy effect of Orion’s acquisition of LegoChemBio.
According to the stock market on the 2nd, Orion, which started at 114,800 won at the beginning of the year, ended trading at 91,500 won the previous day, falling 21.19% this year as of the previous day. This is well above the KOSPI rate of return (-4.25%) during this period.
In particular, Orion’s stock price fell 17.51% on the 16th alone. Then, on the 17th, it fell to 89,700 won intraday, hitting a new 52-week low.
The reason why the stock price fell sharply in just two days was because Orion announced its entry into the bio business.
[사진 출처 = 오리온]
After the market closed on the 15th, Orion announced that it would invest 550 billion won to secure a 25% stake in LegoChem Bio. Orion previously declared its leap forward as a global food and healthcare company and selected the bio business as its top three new businesses along with beverages and convenient meal replacements.
Orion said, “LegoChem Bio is a pharmaceutical company established in 2005 and is evaluated as having research and development capabilities in the field of antibody-drug conjugate (ADC) technology and synthetic new drugs,” and added, “A total of 13 technology transfer contracts have been signed from 2015 to present.” “The technology transfer fee amounted to 8.7 trillion won.”
Due to the deterioration of investment sentiment following the decision to expand the bio business, the expectations of securities companies are also rapidly lowering. NH Investment & Securities lowered Orion’s target price from 170,000 won to 130,000 won. Kiwoom Securities and Hanwha Investment & Securities lowered their prices from 180,000 won to 155,000 won and from 180,000 won to 130,000 won, respectively.
Joo Young-hoon, a researcher at NH Investment & Securities, said, “As there were many investors who placed value on the stable cash-generating ability of the confectionery business, short-term investment sentiment worsened accordingly.”
However, there is also analysis that the stock price decline is excessive. This is because profits and losses related to LegoChemBio will be recognized using the equity method rather than consolidated performance.
NH Investment & Securities predicted that even if LegoChem Bio maintains its deficit at last year’s level, the decline in net profit for controlling shareholders will be less than 5%.
Researcher Joo said, “The impact in terms of fundamentals will not be as large as market concerns,” and added, “As major grain prices are showing a downward stabilization trend, the burden on manufacturing costs is also expected to decrease.”
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