Chong Kun Dang Holdings is a holding company that, rather than making products itself, controls the various companies of the Chong Kun Dang group through equity stakes, so its value derives from the results and stake value of its subsidiaries. These include the core listed subsidiary Chong Kun Dang (26.3%), which handles prescription drugs and Wegovy distribution, along with the active-ingredient maker Kyongbo Pharmaceutical, a bio-materials arm, and a health-functional-food subsidiary. Consolidated revenue is about ₩959.0 billion, and the holding company's own profit comes from equity-method gains, dividends, and rental income received from subsidiaries; its May first-quarter report showed operating and net profit rising sharply, and a subsidiary's application to begin a Phase 3 trial of the hypertension drug CKD339 was also disclosed. The strengths worth noting are an undervaluation in which the value of listed stakes exceeds market cap by about 33%, together with Chong Kun Dang's earnings recovery and a 3.4% dividend; the offsets to watch are the volatility of equity-method gains and the tight cash cushion implied by an 81% current ratio.
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 81.0%).
- Revenue rose 0.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.6% lower than a year earlier.
- ROE is 6.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.1%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Jang-han 33.73% (individual)
Controlling bloc incl. related parties 47.92%
With the controlling bloc holding 48%, the ownership structure is stable.
Net asset value (NAV) assessment Fairly valued33% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Kyongbo Pharmaceutical | 43.41% |
| Chong Kun Dang | 26.29% |
🔎 In-depth analysis
- Chong Kun Dang Holdings is not a company that makes and sells products itself but a holding company that controls the various companies of the Chong Kun Dang group through equity stakes.
- The real earnings come from the subsidiaries.
- The listed subsidiary Chong Kun Dang (26.3% stake), which manufactures and sells pharmaceuticals, is the group's core, with prescription drugs for gastroesophageal reflux, diabetes, and hyperlipidemia and the distribution of the obesity treatment Wegovy as its mainstay.
- Bundled with it are Kyongbo Pharmaceutical (43.4%), which makes active pharmaceutical ingredients (API); Chong Kun Dang Bio, in fermentation and bio-materials; and the unlisted Chong Kun Dang Health, which makes health-functional foods such as probiotics.
- The holding company's revenue (about ₩959.0 billion consolidated) is the sum of these subsidiaries' results, and the holding company's own profit comes from equity-method gains, dividends, and rental income received from subsidiaries.
- It also holds real-estate leasing (Chong Kun Dang Industrial) and group-support companies in construction, transport, and IT.
- In short, this company's value is determined by the results of the subsidiaries it holds and the market value of those stakes.
- The latest close is ₩38,450 and market capitalization is ₩192.6 billion.
- The price sits below the 20-day line (₩39,742) and below the 60-day line (₩44,397).
- Trading below both the short- and mid-term moving averages, the trend is subdued.
- The RSI (an auxiliary gauge that scores the strength of gains against declines over the past 14 days on a 0-100 scale) is 37.0, a neutral level.
- The one-month change is -6.8%, the three-month change is -18.0%, and the position versus the 52-week high is -30.3%.
- Relative strength against the KOSPI is 11 (on a 1-99 scale, converted from the past year's return versus the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 89% of all stocks by strength.
- Over the past three months it has lagged the index by 34.9%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On valuation, the P/E (how many times one year's earnings the price represents) is 4.76x and the P/B (how many times book net assets) is 0.30x.
- On these figures alone the levels are very low.
- But for a holding company these two indicators are hard to compare directly with other firms.
- Book equity carries subsidiary stakes at low historical cost, understating them relative to actual holding value, and net profit is swayed by non-cash equity-method gains that fluctuate year to year.
- So for this company, the low P/E and P/B are better read not as a burden but, together with the net asset value (NAV) explained later, as an undervaluation signal.
- On profitability, the ROE (how much is earned in a year on equity) of 6.3% is above the industry average, and the operating margin of 6.1% and net margin of 4.2% are ordinary.
- The debt ratio (debt against equity) is 112%, not excessive, but the current ratio of 81% and interest coverage of 1.88x show that near-term cash room is not very ample.
- The dividend yield of 3.4% (₩1,400 per share, 16.5% payout ratio) is high for the pharmaceutical and bio sector, and with a low payout ratio there is room to raise it going forward.
- Consolidated revenue was ₩879.8 billion in 2023, ₩957.8 billion in 2024, and ₩959.0 billion in 2025, so the top line is close to flat, but operating profit rose sharply for two straight years, from ₩17.0 billion (2023) to ₩35.5 billion (2024) to ₩58.3 billion (2025), a clear improvement in earnings quality.
- That resulted from the subsidiary Chong Kun Dang lifting margins while growing revenue through prescription drugs and Wegovy distribution, a classic inflection in which earnings bend upward while the top line is flat.
- Net profit was ₩47.0 billion (2023), ₩33.6 billion (2024), and ₩40.4 billion (2025), moving up and down because holding-company net profit is swayed by the non-cash item of subsidiary equity-method gains.
- In the first quarter of 2026, despite revenue of ₩240.3 billion (-2.6% year over year), operating profit was ₩19.3 billion (+62.0%) and net profit ₩17.9 billion (+128.2%), so core profitability stepped up another notch.
- With this trend, this year's forward P/E (on this year's estimated earnings) falls to 4.76x.
- In other words, on the earnings the company will make this year, the price is even cheaper than the 4.76x P/E on last year's earnings.
- This figure comes from the core subsidiary's earnings recovery flowing straight into group-wide profit, and for now there is no basis to see earnings turning down next year versus this year.
- That said, given the nature of a holding company, equity-method gains carry a range of variability, so quarterly net profit may fluctuate rather than run smooth, and that should be kept in view.
- Recent disclosures center less on big business changes than on stakes, governance, and subsidiary clinical trials.
- In April 2026 a subsidiary's termination of a single supply contract was disclosed, and in May a subsidiary's application for approval of a Phase 3 clinical-trial plan with the Ministry of Food and Drug Safety (MFDS) for the hypertension drug CKD339 under development was disclosed, showing the new-drug pipeline advancing into late stages.
- In the same May first-quarter report, the sharp rise in operating and net profit was confirmed.
- The March regular shareholders' meeting and appointment of outside directors were completed, and in May-June reports of changes in the largest shareholder's holdings and of major-holding status followed, along with a routine corporate-governance report disclosure.
- Generally, a holding company's share price reacts more to the results and new-drug progress of its core subsidiary (Chong Kun Dang in particular) and to changes in the market value of its stakes than to individual disclosures.
- The strengths are clear.
- First, the value of listed stakes (NAV) of about ₩312.6 billion far exceeds the market cap of about ₩208.2 billion, a discount of roughly 33%, which sits at the shallow end of the usual holding-company discount range (30-50%) with room to fill rather than deepen.
- Second, core subsidiary Chong Kun Dang's operating profit has risen for two straight years, and earnings are bending upward enough that this year's forward P/E falls to 3.36x.
- Third, the 3.4% dividend yield offers cash compensation while waiting, with room to raise the dividend.
- There are cautions too.
- Holding-company net profit is swayed by non-cash equity-method gains and can fluctuate quarter to quarter; among the subsidiaries some, like Kyongbo Pharmaceutical, contribute little because they earn almost no profit; and the 81% current ratio leaves near-term cash room tight.
- Taken together, this is a stock that combines undervaluation with earnings recovery, gaining strength when subsidiary results keep improving and the holding discount narrows, and losing momentum when subsidiary earnings waver again or the discount stays entrenched for long.
🔎 Valuation vs peers Fairly valued
Listed companies tied by business and holding relationships within the same Chong Kun Dang group. For a holding company it is more appropriate to look at the market value of its stakes (NAV) than to compare subsidiaries' P/E and P/B directly.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Chong Kun Dang | 12.43x | 0.96x | 7.72% |
| Kyongbo Pharmaceutical | 667.11x | 0.83x | 0.13% |
As a holding company, undervaluation cannot be concluded from low figures alone such as a 5.1x P/E and 0.32x P/B. (a) The true benchmark is the market value of the listed stakes (NAV); the value of the Chong Kun Dang (26.3%) and Kyongbo Pharmaceutical (43.4%) holdings is about ₩312.6 billion, above the market cap of about ₩205.9 billion, a discount of roughly 33%. That is at the shallow end of the usual holding-company discount range (30-50%). (b) On the premium/discount side, Chong Kun Dang is a recovering core subsidiary at 12.7x P/E and 7.7% ROE, but Kyongbo Pharmaceutical earns almost no profit and has a very high P/E, so subsidiary quality is mixed. Because of that, the discount is unlikely either to widen much further or to narrow quickly. (c) The trailing P/E on last year's results has large limits while subsidiary equity-method gains are at an inflection. This year's forward should be viewed conservatively because the first-quarter surge includes a low-base effect, and no official company annual outlook figure has been confirmed. Taken together, it is hard to call this deeply undervalued, and the judgment is a fair range on an NAV basis.
Price history Close · MA20 · MA60
The latest close is ₩38,450 and the market capitalization is ₩192.6 billion. The price sits below its 20-day moving average (₩39,742) and below its 60-day moving average (₩44,397). 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 37.0, a neutral level. The one-month change is -6.8%, the three-month change is -18.0%, and the position relative to the 52-week high is -30.3%. Relative strength versus the KOSPI is 11 (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 11% of all stocks. Over the past three months it lagged the index by 34.9%. 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 -34.88% / 6M -47.55% / 12M -69.34%
Key metrics vs sector median
Valuation
The P/E of 4.76x is below the sector median (15.98x). The P/B of 0.30x is below the sector median (1.37x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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 6.3%, above the sector average (3.0%). The operating margin is 6.1%. The debt ratio is 112.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $583.1M | $634.8M | $635.6M | +0.13% ↓ slower |
| Operating profit | $11.3M | $23.5M | $38.6M | +64.24% ↓ slower |
| Net profit | $31.2M | $22.3M | $26.8M | +20.34% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $613.7M | $602.4M | $583.1M | $634.8M | $635.6M |
| Operating profit | $22.8M | -$21.8M | $11.3M | $23.5M | $38.6M |
| Net profit | $10.6M | $712,122 | $31.2M | $22.3M | $26.8M |
| Revenue CAGR | 4-yr avg 0.88% | ||||
Revenue rose 0.1% year over year (2023 ₩879.8 billion → 2024 ₩957.8 billion → 2025 ₩959.0 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 64.2% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.9%. The two-year revenue CAGR is 4.4%. In the most recent quarter (Q1 2026), revenue was 2.6% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.6%, is on the high side.
Points to watch
- Revenue rose 0.1% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-14FilingApplication for approval of a Phase 3 clinical-trial plan with the Ministry of Food and Drug Safety (MFDS) for the hypertension drug CKD339 under development at a subsidiary. Disclosed as a major management matter of the subsidiary.The new-drug pipeline enters late-stage trials. If successful it is a medium-term upside factor for subsidiary value (and thus the holding company's NAV), but the nature of the trial stage also carries uncertainty in the outcome. Source
- 2026-04-10FilingDisclosure of a subsidiary's termination of a single supply contract (major management matter of the subsidiary).A factor in some variation of that subsidiary's revenue. The effect on the holding company's consolidated results is proportional to the contract size, and near-term observation is warranted as a change in the subsidiary's business mix. Source
- 2026-05-15EarningsFirst-quarter 2026 report disclosed. Consolidated revenue ₩240.3 billion (-2.6% year over year), operating profit ₩19.3 billion (+62.0%), net profit ₩17.9 billion (+128.2%).Despite flat revenue, earnings improved sharply on the subsidiaries' operating recovery. That said, the surge in net profit includes a low-base effect from the prior year, so caution is warranted before concluding an annual trend. Source
- 2026-03-26FilingRegular shareholders' meeting results and appointment of outside directors disclosed. Routine renewal of board composition.A routine governance procedure with limited near-term impact on results. It also serves to confirm the continuity of dividend and other shareholder-return policies. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Listed-stake NAV discount rate | approx. 33% | 26.3%·approx. 43.4% | Unverified | link |
| First-quarter 2026 results (consolidated) | revenue 2,403·operating profit 193·net profit 179 | (2026.03) | Confirmed | link |
| Dividend (₩1,400 per share, 3.4% dividend yield) | DPS ₩1,400,x 16.5%, 3.41% | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipLargest-shareholder ownership change report
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-28OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-04-10Single supply/sales contract
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-23OwnershipOwnership-change filing
📖 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.