[Edaily Reporter Kwon Oh Seok ] IBK Investment & Securities announced on the 28th that it is initiating coverage of Seegene Inc.(096530)with a “Buy” rating and a target price of 44,000 won.

Seegene Inc. is a company specializing in genetic diagnostics that can simultaneously detect multiple infectious disease pathogens with a single test. Its revenue consists of diagnostic reagents and testing equipment; once the equipment is installed, reagents are sold repeatedly over the following years.
Jo Eun-ae, an analyst at IBK Investment & Securities, stated, “The more than 3,000 testing devices installed primarily in Europe during the pandemic are serving as the foundation for expanded sales of non-respiratory diagnostic reagents in the post-pandemic era,” adding “While revenue from respiratory diagnostic reagents, including those for COVID-19, is expected to decline from approximately 940 billion won in 2021 to an estimated 100 billion won in 2026, revenue from non-respiratory diagnostic reagents is projected to rise from approximately 90 billion won in 2021 to an estimated 260 billion won in 2026, to an estimated 318 billion won in 2027, with high growth of 22% annually projected from 2025 to 2027.”
He added, “Growth drivers are distinct across each product category in the non-respiratory sector. Gastrointestinal (GI) sales are projected to grow at an average annual rate of 20% from 2025 to 2027 due to the shift from traditional stool culture tests to PCR testing, driven by the time and labor burdens associated with the former,” and “For human papillomavirus (HPV), national screening programs around the world are shifting to PCR testing as the World Health Organization (WHO) recommends HPV testing as the primary screening method for cervical cancer. Meanwhile, growth in the sexually transmitted infection (STI) sector is supported by the competitive advantage of testing for multiple pathogens simultaneously,” he explained.
He further elaborated, “Consequently, the share of respiratory test revenue is projected to decline from 30% in 2024 to an estimated 16% in 2027.”
Researcher Cho added, “As the revenue structure—which was previously driven by respiratory disease outbreaks—shifts toward non-respiratory testing centered on year-round demand, seasonality and earnings volatility are easing. Consequently, the predictability and floor of quarterly earnings are improving.” He continued, “As the valuation discount stemming from past earnings volatility subsides and earnings growth is confirmed, the stock price is expected to trend upward.”