Samchundang Pharm is an ophthalmology-focused drugmaker that mass-produces preservative-free single-use eye drops, earning steady cash from domestic supply and exports. On top of that, an Aflibercept biosimilar with high margins relative to cost, and an oral-delivery technology (S-PASS) that converts injectables into pills, are reshaping its earnings picture. In Q1 2026 a swing to profit, driven by the Aflibercept biosimilar, was confirmed in the quarterly report, an oral-insulin candidate (SCD0503) entered a Phase 1 trial in Europe with first-patient dosing begun, and a regular shareholders' meeting, a cash dividend (₩50 per share) and IR followed. The key point worth noting is that, on top of a stable eye-drop core business, the high-margin Aflibercept biosimilar is leading the swing to profit and a surge in earnings, so last year's high-looking P/E ratio falls sharply on this year's earnings basis — but even that value is high in absolute terms, so its strength or weakness depends on the pace of expanding overseas sales and clinical progress.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 203.3%).
- Revenue rose 9.9% year over year, and the pace is quickening (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 28.1% higher than a year earlier.
- ROE is 1.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.6%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Sohwa 30.7% (corporate)
Controlling bloc incl. related parties 37.6%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Samchundang Pharm is an ophthalmology-focused drugmaker that grew around eye drops.
- Its long-standing core is mass-producing preservative-free single-use eye drops, supplying them domestically and exporting to the United States and Europe, which provides steady cash.
- On top of that, two new businesses cultivated over recent years are reshaping the earnings picture.
- One is an Aflibercept (an injectable for macular degeneration and diabetic retinopathy) biosimilar (a copycat biologic made after the original drug's patent expires); it has won approvals in Korea, Japan and Europe and has begun selling, with U.S. entry in preparation.
- This segment carries high margins relative to cost, so the more it sells, the more it lifts overall profitability.
- The other is an in-house oral-delivery technology (S-PASS) that turns drugs hard to make into pills (such as insulin) into tablets; an oral-insulin candidate (SCD0503) is in a Phase 1 trial in Europe.
- The latest close is ₩192,900 and the market cap is ₩4.5 trillion.
- The price sits below the 20-day line (₩231,045) and below the 60-day line (₩336,132).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.8, a neutral level.
- The one-month change is -25.4%, the three-month change is -62.8%, and the price sits -83.7% below its 52-week high.
- Relative strength versus the KOSDAQ is 79 (on a 1-99 scale, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 20% of all stocks by strength.
- Over the past three months it lagged the index by 45.4%.
- Chart reading is best done together with volume and disclosure dates.
- On the valuation metrics alone, it looks burdensome.
- On last year's confirmed results the P/E ratio (how many times one year of net profit the price represents) is about 996x, the P/B (how many times book net assets the price represents) is 16.39x, and the P/S (how many times revenue the price represents) is 22.6x.
- But that 996x P/E uses as its denominator the low earnings of a “first year of transition,” when the company barely swung from a 2024 loss to a 2025 profit (net profit ₩5.3 billion), a trap that exaggerates the company's current strength and makes it look expensive.
- For a company passing an inflection point in earnings, the direction of this year's profit matters more than last year's number.
- Profitability is still in early recovery, with ROE (how much is earned in a year on equity) at 1.9% and an operating margin of 3.6%.
- The finances are relatively stable.
- The debt ratio (debt against equity) is 203%, not low, but the current ratio (assets soon convertible to cash against debt due within a year) is a comfortable 227%, and the interest-coverage ratio (how many times operating profit can cover interest) of 5.9x means it can carry its interest burden without strain.
- The top line is steadily expanding.
- Revenue rose three years running — ₩192.7 billion in 2023, ₩210.9 billion in 2024, ₩231.8 billion in 2025 — and the growth rate (+9.9% year on year) is gradually accelerating.
- Profit swung sharply.
- Net profit was in the red two years running in 2023 and 2024 (₩-10.4 billion and ₩-10.9 billion) before turning positive at +₩5.3 billion in 2025.
- The force behind the turn was Aflibercept-biosimilar revenue beginning to accrue.
- The change is sharper still in 2026.
- Q1 revenue was ₩64.9 billion (+28.1% year on year), operating profit ₩5.4 billion (about eight times the prior-year figure) and net profit ₩6.9 billion — a single quarter's net profit already exceeding the full-year 2025 net profit (₩5.3 billion).
- The company expects the scale of improvement to widen toward the second half on normalized supply chains and expanding European sales.
- Following this trajectory, this year's profit strength is at a completely different level from last year's, and last year's high P/E falls sharply when divided by this year's profit.
- Still, even that lowered figure (around 170x) remains high in absolute terms, so the price is structured to pull forward the fruits of several years of global biosimilar expansion and the oral-delivery pipeline, rather than reflecting current profit.
- Recent disclosures and IR fall into three streams.
- First, the Aflibercept biosimilar's earnings contribution was confirmed in the quarterly report (a swing to profit in Q1 2026).
- Second, the growth-axis oral-delivery pipeline advanced — the oral-insulin candidate (SCD0503) entered a Phase 1 trial in Europe with first-patient dosing begun.
- Third, shareholder returns and communication continued — a regular shareholders' meeting, a cash-dividend decision, and two investor briefings (IR) in April and June were disclosed.
- That said, the dividend of ₩50 per share (a yield of about 0.02%) is symbolic, showing that this company's investment appeal lies not in dividends but in the growth of its new drugs and biosimilars.
- The points to watch are clear.
- Strengths are: (1) a stable ophthalmic eye-drop core supplies cash while (2) the high-margin Aflibercept biosimilar leads the swing to profit and the surge in earnings, and (3) it is at an early stage of widening its sales regions into Europe and the United States.
- Indeed, even though last year's P/E looks very high, recalculating it on this year's profit lowers the valuation sharply — that is the heart of this stock.
- On the other hand, the caution is that even that lowered figure is high in absolute terms.
- In other words, the price already pulls forward much of the coming years of biosimilar expansion and the success of an oral-delivery pipeline still in early trials, so it is strong if overseas sales expand and clinical progress come as expected, and weak if they are delayed or competition intensifies.
- In conclusion, this is a growth stock passing an inflection point in earnings, one to judge by the pace at which results are realized from this year on, not by last year's number.
🔎 Valuation vs peers Inconclusive
Compared against domestic pharma and biotech companies with biologic growth stories such as ophthalmology and biosimilars.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Celltrion | 37.26x | 2.23x | 5.98% |
| Samsung Biologics | 34.37x | 8.23x | 23.95% |
| SK Bioscience | — | 1.59x | -3.21% |
On last year's confirmed results the P/E of 996x uses the low first-year earnings from the swing to profit as its denominator, a limitation that exaggerates the company's strength and makes it look expensive. Reflecting that Q1 net profit already exceeded last year's full-year figure, recalculating on this year's profit lowers the forward P/E sharply to about 175x. That is a large improvement over last year, but even against large biotech companies compared as growth names (P/E in the 30s), the absolute level remains high. In other words, the current price is structured to pull forward much of the coming years of global biosimilar expansion and results from a pipeline still in early trials, so rather than concluding “cheap or expensive,” it should be judged by the pace at which future results are realized.
Price history Close · MA20 · MA60
The latest close is ₩192,900 and the market capitalization is ₩4.5 trillion. The price sits below its 20-day moving average (₩231,045) and below its 60-day moving average (₩336,132). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.8, a neutral level. The one-month change is -25.4%, the three-month change is -62.8%, and the position relative to the 52-week high is -83.7%. Relative strength versus the KOSDAQ is 79 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 80% of all stocks. Over the past three months it lagged the index by 45.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -45.41% / 6M -5.97% / 12M +24.51%
Key metrics vs sector median
Valuation
The P/E of 860.01x is above the sector median (15.98x). The P/B of 16.39x is above the sector median (1.37x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 1.9%, below the sector average (3.0%). The operating margin is 3.6%. The debt ratio is 203.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $127.7M | $139.8M | $153.6M | +9.90% ↑ faster |
| Operating profit | $6.3M | $1.8M | $5.6M | +220.46% ↑ faster |
| Net profit | -$6.9M | -$7.2M | $3.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $110.9M | $117.5M | $127.7M | $139.8M | $153.6M |
| Operating profit | -$10.1M | $8.1M | $6.3M | $1.8M | $5.6M |
| Net profit | -$11.0M | $3.9M | -$6.9M | -$7.2M | $3.5M |
| Revenue CAGR | 4-yr avg 8.50% | ||||
Revenue rose 9.9% year over year (2023 ₩192.7 billion → 2024 ₩210.9 billion → 2025 ₩231.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 220.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.5%. The two-year revenue CAGR is 9.7%. In the most recent quarter (Q1 2026), revenue was 28.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-17IRFirst-patient dosing begins in the European Phase 1 trial of the oral-insulin candidate SCD0503 (based on the in-house S-PASS oral-delivery technology)The oral-delivery pipeline, a medium-to-long-term growth axis, entered actual clinical stages. If successful it would support the upside of the valuation, but because the trial is early, confirming results takes time and carries considerable uncertainty. Source
- 2026-06-10IRInvestor briefing (IR) held — sharing growth strategy and progress of the Aflibercept biosimilar and oral-delivery pipelineStronger investor communication. A forum to explain directly the background of the earnings improvement and future plans. Source
- 2026-05-15EarningsQ1 2026 quarterly report — revenue ₩64.9 billion (+28.1% year on year), operating profit ₩5.4 billion, net profit ₩6.9 billion, a swing to profit and a surgeThe Aflibercept biosimilar's earnings contribution confirmed in the numbers. A single quarter's net profit exceeding the full-year 2025 net profit supports passing an inflection point in earnings. Source
- 2026-04-27DividendCash and in-kind dividend decision — ₩50 per common share (including disclosures related to the regular shareholders' meeting)At a yield of about 0.02% it is symbolic, suggesting the investment appeal lies in growth rather than dividends. Source
- 2026-04-16IRInvestor briefing (IR) held (voluntary disclosure) — explanation of business and pipeline statusRegular investor communication. Conveying the progress of new businesses to the market. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Consistency of market cap, share count and current price | ₩4.5 trillion | ₩4.5 trillion | Confirmed | link |
| Q1 2026 swing to profit (cumulative) | 1 revenue 649, operating profit 54, net profit 69 | 1 (2026.03) | Confirmed | link |
| 2025 net profit swing to positive | 2025 net profit +53, revenue 2,318 | (2025.12) | Confirmed | link |
| Estimated 2026 net profit and forward valuation | self-estimate net profit approx. 300 → forward PER approx. 175x | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-04PeriodicAnnual business report (amended)
- 2026-05-29Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-27Disclosure
- 2026-04-27Disclosure
- 2026-04-27Shareholders' meeting notice
- 2026-04-20Disclosure
- 2026-04-16Amended filing
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31Disclosure
- 2026-03-30Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.