Ilsung IS is a pharmaceutical maker whose products center on penicillin-class antibiotics (its flagship being Augmentin) alongside tablets and injectables, but in recent years, as its core drug business has seen falling revenue and operating losses, the center of gravity for its value has shifted toward its large asset base of land and buildings and toward new ventures in real-estate development (senior towers), asset management, and AI-based senior care. On March 27, 2026 the company voluntarily disclosed a corporate value-up plan, acknowledging on its own that it trades at a low P/B of 0.65x with weak capital efficiency, and on February 25 it declared a cash dividend of ₩1,200 per share (roughly 6%), followed by regular disclosures. The key point of late is a two-sided one: a P/B of 0.65x below net asset value, a dividend above 6%, a current ratio reaching 17x, and the company's own stated intent to improve itself are strengths from an asset-value and dividend standpoint, whereas the core drug business has posted revenue declines and operating losses for three straight years, net profit swings with non-operating items, and the new ventures show land and building purchase costs first, so how quickly asset utilization translates into profit is the pivotal variable for whether the low P/B unwinds.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 6.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 0.5% higher than a year earlier.
- ROE is 0.3% (total-net basis). It is below the sector average.
- Operating margin is -9.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Yoon Seok-geun 15.59% (individual)
Controlling bloc incl. related parties 38.19%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Ilsung IS is a pharmaceutical company that makes tablets and injectables centered on penicillin-class antibiotics (its flagship products including Augmentin).
- Over the past several years, however, the core drug business has seen revenue decline and continuing operating losses, so the center of gravity of the company's value has shifted toward its large asset base of land and buildings and toward new ventures.
- The company is broadening into real-estate development (senior towers, nursing homes, and other businesses that combine housing and care for the elderly), asset management, and AI-based senior care.
- Put simply, it should be viewed as having two faces at once: a company that sells drugs and, at the same time, a company sitting on land and buildings that is shifting into real-estate and elderly-care businesses.
- The latest close is ₩19,890 and market capitalization is ₩264.5 billion.
- The price sits above its 20-day line (₩19,452) but below its 60-day line (₩20,627).
- With the short- and mid-term trends diverging, the direction is best read separately.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 54.7, a neutral level.
- The one-month change is +3.3%, the three-month change is -10.0%, and the position versus the 52-week high is -30.6%.
- Relative strength versus the KOSPI is 18 (on a 1-99 scale, converted from returns against the index over the past year with more recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 83% of all stocks by strength.
- Over the past three months it lagged the index by 29.9%.
- It is best to read the chart together with trading volume and disclosure dates.
- Explained at a beginner's level, the P/E (how many times one year's net profit the price represents) prints very high at 216x.
- But this is an illusion stemming from 2025 net profit having shrunk almost to the floor at ₩1.17 billion, making the denominator small; it does not mean the shares are expensive.
- In other words, this is not a stretch where the trailing P/E itself should be read as a burden.
- The key when looking at this company is that its P/B (how many times net asset value the price represents) is 0.65x.
- Against shareholders' equity of roughly ₩386.3 billion, market capitalization is ₩252.4 billion, so it trades below book net asset value.
- It is on the low side even compared with peer low-P/B pharmaceutical firms.
- Core profitability is weak.
- ROE (how much is earned in a year on equity) is 0.3% and the operating margin is -9.6%, so the core drug business is loss-making.
- That said, the debt-to-equity ratio (debt versus equity) is 104%, which is not heavy, and the current ratio (assets soon convertible to cash versus debt due within a year) reaches 17x, so short-term financial stability is very high.
- In a word, it is a structure where core profitability is weak but assets and coffers are ample.
- Judged by growth metrics alone, the core business is stagnant or in retreat.
- Revenue fell for three straight years, ₩78.1 billion in 2023, ₩69.0 billion in 2024, and ₩64.3 billion in 2025, a 6.9% decline from the prior year in the most recent period.
- Operating profit stayed in the red throughout 2023-2025 (-₩8.0 billion, -₩9.5 billion, -₩6.2 billion).
- Net profit swung sharply each year, at -₩20.9 billion in 2023, ₩13.1 billion in 2024, and ₩1.2 billion in 2025, because net profit is driven not by the core business but by non-operating items such as asset revaluations and disposals.
- In Q1 2026, revenue was ₩16.7 billion (+0.5%) and net profit ₩1.6 billion, so core revenue looks to be forming a floor.
- The forward P/E that reflects this year's expected profit comes down substantially from the trailing 216x, moving much closer to the company's real earning power.
- Even so, for this stock forward profit itself is not the core driver of value.
- Because profit is buffeted by non-operating items, the real growth picture depends on how steadily the real-estate development and senior-care ventures can put those assets to work as recurring profit.
- In other words, this company's growth story is read more accurately in the shift of putting an ample asset base to work as a profit-earning business than in a rebound of core operating profit.
- At the center of the recent flow is the corporate value-up plan (voluntary disclosure) filed on March 27, 2026.
- It is a signal that the company itself recognizes its undervaluation against net assets (P/B of 0.65x) and low capital efficiency and intends to lift shareholder value, and it dovetails with the cash dividend (₩1,200 per share, about 6% at the current price) decided on February 25 of the same year.
- This was followed by regular disclosures including the May quarterly report, the March business report, general shareholders' meeting, and audit report, and the June corporate governance report.
- Disclosures signaling core-business momentum, such as large single-supply contracts, have not stood out, so the immediate story is gathered around asset-value visibility, shareholder returns, and the shift into new businesses rather than a core-business recovery.
- The strengths are clear.
- A share price below net asset value (P/B of 0.65x) is on the low side even among peer low-P/B pharmaceutical firms, and it comes together with a dividend above 6%, a current ratio reaching 17x, and the company's own stated will to improve via its corporate value-up plan.
- A company with ample assets and light debt acknowledging its own undervaluation and moving toward shareholder returns is a clear draw from a perspective that prizes asset value and dividends.
- If the real-estate development and senior-care diversification turns into actual profit, it could take a step beyond a structure in which assets merely paper over core-business losses.
- There are cautions to weigh alongside.
- The core drug business has posted revenue declines and operating losses for three straight years, and net profit is buffeted by non-operating items, producing large quarterly volatility.
- The new ventures are at a stage where land and building purchase costs appear first and weigh on near-term profitability.
- In sum, this stock is strong from a perspective of asset value and dividends/shareholder returns and weak from a perspective of core-profit growth and stability.
- How quickly asset utilization and the new businesses translate into visible profit is the pivotal variable that decides whether the low P/B unwinds or lingers for a long time.
🔎 Valuation vs peers Inconclusive
Reflecting that its business substance is a small pharmaceutical operation plus a large asset holding, it was compared with similarly sized low-P/B, high-dividend pharmaceutical firms (Daewon Pharmaceutical, Ilyang Pharmaceutical, Samsung Pharm).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Ilyang Pharmaceutical | 23.00x | 0.67x | 2.91% |
| Samsung Pharm | 10.45x | 1.00x | 9.54% |
(a) Position versus peers: a P/B of 0.67x is lower than Daewon Pharmaceutical (0.74) and Samsung Pharm (1.16) and equal to Ilyang Pharmaceutical (0.67), placing it among the cheapest on asset value. Its dividend yield in the 6% range far exceeds the peer set (1.9-2.8%). (b) Premium/discount: assets and dividends deserve a premium, while operating losses and low capital efficiency (ROE 0.3%) deserve a discount; the market weights the latter more, pricing it below net asset value. (c) A trailing P/E of 221x is an illusion caused by 2025 net profit temporarily shrinking almost to the floor, and thus plainly shows the limits of a profit-inflection period. Since the company itself disclosed a corporate value-up plan, it is more appropriate to look at net asset value and progress on asset utilization and shareholder returns rather than the core-business P/E. On balance, the two-sided character of cheap assets but weak profit is pronounced, making it hard to conclude decisively either way.
Price history Close · MA20 · MA60
The latest close is ₩19,890 and the market capitalization is ₩264.5 billion. The price sits above its 20-day moving average (₩19,452) and below its 60-day moving average (₩20,627). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.7, a neutral level. The one-month change is +3.3%, the three-month change is -10.0%, and the position relative to the 52-week high is -30.6%. Relative strength versus the KOSPI is 18 (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 17% of all stocks. Over the past three months it lagged the index by 29.9%. 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 -29.90% / 6M -41.64% / 12M -65.52%
Key metrics vs sector median
Valuation
The P/E of 226.80x is above the sector median (15.98x). The P/B of 0.68x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 0.3%, below the sector average (3.0%). The operating margin is -9.6%. The debt ratio is 104.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $51.7M | $45.7M | $42.6M | -6.85% ↑ faster |
| Operating profit | -$5.3M | -$6.3M | -$4.1M | — |
| Net profit | -$13.9M | $8.7M | $772,685 | -91.10% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $27.9M | $40.6M | $51.7M | $45.7M | $42.6M |
| Operating profit | -$1.2M | $859,790 | -$5.3M | -$6.3M | -$4.1M |
| Net profit | -$906,350 | $69.8M | -$13.9M | $8.7M | $772,685 |
| Revenue CAGR | 4-yr avg 11.17% | ||||
Revenue fell 6.9% year over year (2023 ₩78.1 billion → 2024 ₩69.0 billion → 2025 ₩64.3 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.2%. The two-year revenue CAGR is -9.2%. 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
- The dividend yield, at 6.0%, is on the high side.
Points to watch
- Revenue fell 6.9% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-27FilingCorporate value-up plan (voluntary disclosure) announced - voluntarily disclosing a direction to improve undervaluation versus net assets and low capital efficiency and to lift shareholder valueOver the medium term, it forms an expectation that the low valuation at a P/B of 0.67x could unwind and that shareholder returns could strengthen. Whether it leads to concrete execution results, however, needs to be confirmed. Source
- 2026-02-25DividendCash dividend decided - ₩1,200 per share (about 6.2% at the current price)A factor that raises near-term shareholder-return appeal. That said, with weak core-business profit, the durability of the dividend funding depends on asset and cash capacity. Source
- 2026-05-15EarningsQ1 2026 quarterly report - revenue ₩16.7 billion (+0.5%), a slight operating loss, net profit ₩1.6 billionConfirms continued core-business stagnation. Net profit is largely non-operating in nature, so quarterly volatility is high. Source
- 2026-03-18Filing2025 business report - revenue ₩64.3 billion (-6.9% year on year), a third straight year of operating loss, net profit plunging to ₩1.2 billionThe revenue-decline and loss structure of the core drug business forms the backdrop for an asset-based valuation approach. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-02-25DividendCash/stock dividend decision
- 2026-02-25Shareholders' meeting notice
📖 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.