Samil Pharmaceutical, founded in 1947, is a drugmaker that sells ophthalmic eye drops and prescription drugs for liver and gastrointestinal disease, split roughly in half between its own products and in-licensed products, and it is building a new revenue stream around a contract-manufacturing (CDMO) eye-drop plant in Ho Chi Minh City, Vietnam. Revenue was ₩210.3 billion in 2025, but with up-front investment costs running ahead the company swung to an operating loss, and the loss continued in Q1 2026; in June it completed the ₩10 billion convertible-bond issuance for working capital, while the Vietnam plant has obtained WHO and Vietnam GMP certification and is targeting domestic KGMP certification in the first half of the year. The upside case is that with plant certification completed and commercial operation ramping volumes and new-product revenue outgrowing costs, the low valuation - a P/B of about 1.0x and a P/S of 0.65x - is realized; the downside is that if certification and startup are delayed or the funding strain (a 44.3% current ratio and 178.9% debt ratio) and dilution drag on, the case weakens.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 44.3%).
- The most recent full-year net result was a loss.
- Revenue fell 4.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.5% higher than a year earlier.
- ROE is -26.0% (controlling-interest basis). It is below the sector average.
- Operating margin is -10.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Heo Seung-beom 8.2% (individual)
Controlling bloc incl. related parties 25.93%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Samil Pharmaceutical, founded in 1947, earns its money mainly from prescription drugs in ophthalmology (eye drops), liver disease, and gastroenterology.
- Breaking down its ₩210.3 billion of 2025 revenue, sales of its own products were ₩118.1 billion, in-licensed and merchandise sales ₩87.6 billion, and other ₩4.6 billion, so drugs it makes itself and drugs it brings in to sell are roughly half and half.
- The business runs along three lines: bringing in overseas original drugs to sell exclusively in Korea or licensing in technology to produce, generics that copy drugs whose patents have lapsed along with improved new drugs, and its own developed products.
- Its flagship products - established items such as Rebamet and Rividi - have been joined by the recently launched Amelibu and Levakey and by Afilibu, a biosimilar of the macular-degeneration treatment Eylea launched in 2025.
- On top of this, it has built a contract-manufacturing (CDMO) eye-drop plant in Ho Chi Minh City, Vietnam, taking on volume from global pharmaceutical companies to grow a new revenue stream; when this plant runs at full tilt, a structure emerges in which stable production volume is added to the existing drug business, and it is the key variable driving recent results and the share price.
- The latest close is ₩6,100 and the market cap is ₩132.3 billion.
- The price sits below both its 20-day line (₩6,692) and its 60-day line (₩7,897).
- Trading under both its short- and mid-term moving averages, the trend is subdued.
- The RSI (an indicator that gauges upward versus downward strength over the past 14 days on a 0-100 scale) is 37.2, a neutral level.
- The one-month change is -13.0%, the three-month change is -35.4%, and the price is -50.4% from its 52-week high.
- Relative strength versus the KOSPI is 4 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 97% of all stocks by strength.
- Over the past three months it lagged the index by 48.8%.
- Chart readings are best viewed alongside volume and the dates of disclosures.
- Right now the profitability metrics are in a loss-making phase.
- ROE (how much the company earns in a year on its equity) is -26.0%, the operating margin is -10.6%, and the net margin is -16.5%; revenue comes in steadily, but the costs of the plant expansion and new-product launches are outrunning profit.
- The interest-coverage ratio (how many times operating profit can cover interest expense) is -1.69, meaning that during the loss period operating profit cannot cover interest.
- The balance sheet is also tight, with a debt ratio (debt relative to equity) of 178.9% and a current ratio (assets to be turned into cash immediately against debt due within a year) of 44.3%.
- On valuation, the P/E ratio (how many times a year's earnings the price represents) cannot be calculated because of the loss, so it is read on an asset and revenue basis.
- The P/B (how many times net asset value the price represents) is about 1.01x and the P/S (how many times revenue the price represents) is 0.65x, meaning the price is around the level of the net assets held and is actually priced low relative to the scale of revenue generated.
- In other words, on asset and revenue yardsticks it is not expensive, and the crux is whether the loss narrows and earnings reattach.
- The top line grew steadily over five years (a five-year revenue CAGR of +11.9%).
- Revenue of ₩210.3 billion in 2025 was down 4.3% from the prior year, taking a breather for a year, and in that same year operating profit went from +₩0.11 billion to -₩22.2 billion and the net loss widened to -₩34.7 billion.
- It is natural to read this not as the business faltering but as the depreciation and financing costs from the Vietnam plant investment and the costs of new-product launches being pulled forward and recognized all at once.
- That is, this is an up-front-investment phase where money is spent first and revenue follows.
- In the latest quarter (Q1 2026), revenue of ₩52.5 billion was +0.5% year over year, with an operating loss of -₩8.4 billion and a net loss of -₩10.8 billion, so the loss continued.
- For that reason, no earnings-based forward P/E (the price divided by this year's expected earnings) is presented separately for this year.
- Since the estimated annual earnings still land at or below zero, it is more honest to confirm a swing to profit from quarterly results than to force a number.
- The key to recovery is the speed at which the Vietnam eye-drop plant finishes certification and fills revenue with commercial-production volume, and checking that progress each quarter is central.
- The center of gravity of recent disclosures lies in financing and plant certification.
- In June 2026 the company issued the 24th unregistered, unguaranteed private convertible bond (a corporate bond convertible into shares, with a conversion price of ₩7,245) worth ₩10 billion for working capital, completing payment on the 19th of that month.
- This is a move to fill working capital in an up-front-investment phase; a convertible bond carries the possibility of a future rise in share count (dilution), so its progress is an item to watch.
- Earlier, in January 2026, an earnings-structure change disclosure of a large swing in annual results confirmed the swing to an operating loss.
- On the business side, the key narrative is the Vietnam eye-drop CDMO plant.
- According to the company's official guidance, this plant has obtained World Health Organization (WHO) GMP and Vietnam GMP certification, and it has set a target of obtaining domestic MFDS KGMP within the first half of 2026.
- The point at which certification wraps up and commercial-production volume begins to be booked as revenue becomes the watershed for improving results.
- The strengths are clear.
- Drug revenue has accumulated steadily over five years, giving the business a solid base, and the share price sits low relative to net asset value (a P/B of about 1.0x) and the scale of revenue (a P/S of 0.65x).
- On top of this, the Vietnam eye-drop CDMO plant - a new growth axis - has entered the certification and startup stage, and contract manufacturing, once global customers are secured, can lead to stable volume income.
- The cautions are equally clear.
- With up-front investment costs running ahead, operating and net losses widened from 2025 and the loss continued in Q1 2026, and with a 44.3% current ratio and 178.9% debt ratio, short-term funding room is tight, so financing such as convertible bonds and dilution follow.
- In short, this is a stock priced cheap on asset and revenue yardsticks, but for that value to be realized, plant certification must be completed and commercial operation must lift utilization and volume while new-product revenue outgrows costs.
- The more that recovery is confirmed in quarterly results the stronger it becomes, and if certification and startup are delayed or the loss and funding strain drag on, the weaker it becomes.
🔎 Valuation vs peers Inconclusive
We take as the comparison set domestic small- and mid-cap drugmakers centered on ophthalmology and prescription drugs whose business character overlaps, but since Samil Pharmaceutical is loss-making and no P/E is produced, we compare on P/B and profitability position.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JW Pharmaceutical | 8.97x | 1.49x | 16.65% |
| Daewon Pharmaceutical | — | 0.67x | -0.52% |
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
Among the peers, JW Pharmaceutical and Dong Wha Pharm are profitable so a P/E is produced, but Samil is in the red, making comparison on the same yardstick difficult. A P/B of 1.15 is below a profitable peer (JW Pharmaceutical at 1.72) but above a loss-making, low-ROE peer (Daewon Pharmaceutical at 0.74), an ambiguous middle position where it is hard to say it is absolutely cheap against assets. A trailing P/E on last year's confirmed results has clear limits because of the loss, and a forward basis on this year only gains meaning once the Vietnam plant startup and new-product effects narrow the loss. Before the earnings inflection is confirmed, an inconclusive read is more appropriate than calling it undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩6,100 and the market capitalization is ₩132.3 billion. The price sits below its 20-day moving average (₩6,692) and below its 60-day moving average (₩7,897). 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 37.2, a neutral level. The one-month change is -13.0%, the three-month change is -35.4%, and the position relative to the 52-week high is -50.4%. Relative strength versus the KOSPI is 4 (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 3% of all stocks. Over the past three months it lagged the index by 48.8%. 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 -48.83% / 6M -63.42% / 12M -76.39%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.99x is below the sector median (1.37x).
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 -26.0%, below the sector average (3.0%). The operating margin is -10.6%. The debt ratio is 178.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $130.1M | $145.6M | $139.4M | -4.30% ↓ slower |
| Operating profit | $4.3M | $74,920 | -$14.7M | -19749.45% ↓ slower |
| Net profit | $1.1M | -$3.7M | -$23.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $89.0M | $119.1M | $130.1M | $145.6M | $139.4M |
| Operating profit | $264,938 | $2.7M | $4.3M | $74,920 | -$14.7M |
| Net profit | -$3.5M | -$18,748 | $1.1M | -$3.7M | -$23.0M |
| Revenue CAGR | 4-yr avg 11.87% | ||||
Revenue fell 4.3% year over year (2023 ₩196.3 billion → 2024 ₩219.7 billion → 2025 ₩210.3 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 19749.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.9%. The two-year revenue CAGR is 3.5%. In the most recent quarter (Q1 2026), revenue was 0.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 44.3%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 4.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-11FilingA material-fact report deciding to issue the 24th unregistered, unguaranteed private convertible bond worth ₩10 billion for working capital (conversion price ₩7,245). This is a decision to raise funds via a corporate bond convertible into shares.Short term: a top-up of working capital. Medium term: a possible rise in share count on conversion (dilution) and a possible repayment and interest burden. Source
- 2026-06-19FilingVoluntary disclosure of convertible-bond issuance results. Payment for the ₩10 billion private convertible bond resolved on June 11 was completed, confirming the inflow of funds.Short term: confirmed inflow of funds. Medium term: a change in capital structure and a possible future change in share count. Source
- 2026-01-26EarningsDisclosure of a change of 30% or more in earnings structure. Annual revenue of ₩210.3 billion, operating profit of -₩22.2 billion, and net profit of -₩34.7 billion confirmed the swing to an operating loss.Short term: confirmation of the swing to a loss. Medium term: checking for one-off factors and the recovery trend is key. Source
- 2026-05-15EarningsQ1 2026 quarterly report. Revenue of ₩52.5 billion (+0.5% year over year), an operating loss of -₩8.4 billion, and a net loss of -₩10.8 billion; the loss continued.Short term: confirmation of delayed earnings improvement. Medium term: the crux is whether the Vietnam plant startup and new-product contribution narrow the loss. Source
- 2026-02-26FilingA material-fact report deciding to dispose of treasury shares. This is a decision to raise funds by selling held treasury shares.Short term: an inflow of cash. Medium term: supply-demand and dilution effects from a rise in circulating share count. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩210.2 billion | ₩210.3 billion | Confirmed | link |
| Q1 2026 result (operating and net loss) | -83.8 / -108.3 | -84 / -108 | Confirmed | link |
| Recent financing (convertible-bond issuance) | 2026 6 | ₩10.0 billion, ₩7,245, 24 | Confirmed | link |
| Certification stage of the Vietnam eye-drop CDMO plant | WHO-GMP· GMP , KGMP 2026 | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-02OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-22OwnershipLargest-shareholder ownership change report
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-20OwnershipLargest-shareholder ownership change report
- 2026-05-15PeriodicQuarterly report
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-06OwnershipLargest-shareholder ownership change report
📖 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.