Daewon Pharmaceutical makes and sells prescription drugs as well as over-the-counter medicines bought at pharmacies. The strength of its core business lies in its antitussive-expectorant 'Kodaewon' syrup (its largest single product at about 17% of Q1 revenue), the domestically developed anti-inflammatory painkiller 'Pelubi' (annual revenue in the ₩55.0 billion range), and its cold-medicine brand 'Coldaewon' (in the ₩40.0 billion range annually); the key to reading recent results is the losses at cosmetics subsidiary SD Biotechnologies, acquired in 2023, which have recently dragged down overall profit. In March 2026 it held its regular general meeting and kept its ₩250-per-share dividend, and its May Q1 report confirmed that net profit had turned positive again. The notable point recently is that, while its flagship brands have grown core revenue toward the ₩600 billion level and a P/B of 0.65x, P/S of 0.32x, roughly 2.8% dividend yield and the Q1 return to profit signal a recovery, one also has to watch how quickly the cosmetics subsidiary's losses shrink, the financial burden of a 230% debt ratio and interest coverage of around 1x, and the potential dilution from remaining bonds convertible into shares.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 230.8%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.1% higher than a year earlier.
- ROE is -0.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Baek Seung-yeol 11.34% (individual)
Controlling bloc incl. related parties 37.68%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- Daewon Pharmaceutical makes and sells prescription drugs dispensed to patients and over-the-counter medicines bought at pharmacies.
- It earns money along three main axes.
- First, the antitussive-expectorant (cough and phlegm medicine) 'Kodaewon Forte/S syrup,' which accounts for about 17% of total revenue as of Q1 and holds a top rank in ENT prescriptions.
- Second, the in-house-developed domestic anti-inflammatory painkiller 'Pelubi,' which has held the lead in Korea's non-steroidal anti-inflammatory drug market for years (annual revenue in the ₩55.0 billion range).
- Third, the pharmacy cold-medicine brand 'Coldaewon,' which has grown steadily since launch to reach the ₩40.0 billion range annually.
- Having both its own novel drug and familiar OTC brands is the strength of this company's core business.
- On top of that, cosmetics subsidiary SD Biotechnologies (sheet masks and the like), acquired in 2023, is consolidated into its results, and this subsidiary's losses dragging down overall profit over the past two to three years is the key to reading the earnings trajectory.
- The latest close is ₩7,960 and market capitalization is ₩178.5 billion.
- The price sits below the 20-day line (₩8,252) and below the 60-day line (₩9,445).
- Being under both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that scores the strength of recent gains versus losses over the past 14 days on a 0-100 scale) is 42.6, a neutral level.
- The one-month change is -18.6%, the three-month change is -21.6%, and the position versus the 52-week high is -41.5%.
- Relative strength versus KOSPI is 5 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 96% of all stocks by strength.
- Over the past three months it lagged the index by 37.6%.
- Charts are best read alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, ROE (how much is earned in a year on equity) was squeezed to -0.5% and the operating margin to 0.6%.
- Because there was a net loss, a P/E ratio (how many times a year's profit the share price represents) based on last year's earnings cannot even be calculated.
- But this loss stemmed not from the core business collapsing but from the cosmetics subsidiary's losses, so it is hard to judge the company's fair value on last year's numbers alone.
- On an asset and revenue basis, P/B (how many times book net asset value the share price is) is 0.67x, well below 1x, meaning it trades cheaper than book, and P/S (how many times revenue the share price is) is also low at 0.32x.
- Reflecting the Q1 return to a net profit, the forward P/E on this year's expected earnings now lets the company be compared on earnings, unlike last year when losses made it meaningless.
- The dividend yield is about 2.8% (a per-share dividend of ₩250), a cash dividend around the peer average.
- Financial items to note are that the debt ratio (debt against equity) is 230.8%, so debt is somewhat greater than equity, and interest coverage is around 1x, leaving little room to cover interest with operating profit.
- Revenue grew from ₩354 billion to ₩605 billion over five years, an average of about 14% a year, so top-line growth is clear.
- That said, revenue growth slowed the more recent the period (2024: +13.5% to 2025: +1.2%).
- Profit moved the opposite way for a while: operating profit fell from ₩32.2 billion in 2023 to ₩28.2 billion in 2024 and ₩3.5 billion in 2025, and net profit swung from a ₩14.2 billion profit in 2024 to a -₩1.4 billion loss in 2025.
- The big causes of this profit decline were the cosmetics subsidiary's losses (its revenue shrank by more than 78% over several years amid continued losses) and rising cost of sales and R&D expense.
- In other words, it was the acquired subsidiary, not the core business, that dragged profit down.
- The turning point was Q1 2026, when net profit swung back to a profit of about ₩1.9 billion while revenue held at ₩158.1 billion.
- The forward P/E of about 22x on this year's expected earnings reflects this recovery from loss to profit.
- With core prescription revenue steady and the subsidiary's losses narrowing, this year's profit is set to recover, and that began to be confirmed by the Q1 return to profit.
- The recent flow centers on regular closing, shareholder returns and capital-structure disclosures.
- In March 2026 it filed its business and audit reports and held its regular general meeting (keeping the dividend at ₩250 per share), and it also disclosed a corporate governance report.
- In May its Q1 report confirmed net profit had turned positive again.
- In February there was a disclosure adjusting the conversion price, warrant exercise price and exchange price on previously issued bonds; because rights that can convert into shares remain, this is an item to watch for a possible increase in share count (dilution).
- Rather than one-off good news like an order win, the point to watch is whether the core prescription results and the subsidiary's restructuring gains carry through to next quarter's results.
- The strength is clear.
- With flagship prescription and OTC brands Kodaewon, Pelubi and Coldaewon, core revenue has grown steadily toward the ₩600 billion level, valuation is undemanding versus assets and revenue at a P/B of 0.65x and P/S of 0.32x, and it pays a cash dividend of about 2.8%.
- Last year's loss too came not from the core business but from the cosmetics subsidiary, and in Q1 net profit swung back to a profit, signaling that earnings have entered a recovery phase.
- At the same time, the conditions to watch are (1) how quickly the subsidiary's losses shrink so that core profit shows through fully, (2) the financial burden of a 230% debt ratio and interest coverage around 1x, and (3) potential dilution from conversion of remaining bonds into shares.
- In sum, this is a stock where cheap valuation versus assets and revenue and recovering earnings come to the fore together if the subsidiary's losses narrow and the return to profit continues, but where core value can be obscured if the subsidiary's normalization is delayed or the financial burden grows.
🔎 Valuation vs peers Inconclusive
Mid-sized domestic pharmaceutical companies that sell both prescription and OTC drugs. In particular, companies with some OTC (e.g. cold medicine) exposure and their own branded drugs were used as the peer set (holding-company structures were excluded, since their valuation basis differs).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
| Bukwang Pharmaceutical | 30.56x | 1.13x | 3.69% |
The trailing P/E on last year's earnings cannot be calculated because of the net loss, so cheapness or expensiveness cannot be judged on last year's numbers alone. On an asset basis, the P/B of 0.74x is higher than peer Dong Wha Pharm (0.38x), but given the core-business value of its own novel drug and No. 1 brands, it is hard to see that as an excessive premium. On a forward basis (this year's expected earnings), the core business's earning power is intact, but the structure swings widely with how quickly the cosmetics subsidiary's losses shrink, so rather than fixing a fair value at the current point, it is reasonable to judge while watching the subsidiary's normalization progress, hence Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩7,960 and the market capitalization is ₩178.5 billion. The price sits below its 20-day moving average (₩8,252) and below its 60-day moving average (₩9,445). 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 42.6, a neutral level. The one-month change is -18.6%, the three-month change is -21.6%, and the position relative to the 52-week high is -41.5%. Relative strength versus the KOSPI is 5 (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 4% of all stocks. Over the past three months it lagged the index by 37.6%. 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 -37.58% / 6M -57.78% / 12M -74.58%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.67x 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 -0.5%, below the sector average (3.0%). The operating margin is 0.6%. The debt ratio is 230.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $349.3M | $396.4M | $401.3M | +1.22% ↓ slower |
| Operating profit | $21.4M | $18.7M | $2.3M | -87.66% ↓ slower |
| Net profit | $15.9M | $9.4M | -$914,414 | -109.71% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $234.7M | $317.4M | $349.3M | $396.4M | $401.3M |
| Operating profit | $12.9M | $28.5M | $21.4M | $18.7M | $2.3M |
| Net profit | $4.6M | $21.2M | $15.9M | $9.4M | -$914,414 |
| Revenue CAGR | 4-yr avg 14.34% | ||||
Revenue rose 1.2% year over year (2023 ₩527.0 billion → 2024 ₩598.2 billion → 2025 ₩605.4 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 87.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.3%. The two-year revenue CAGR is 7.2%. In the most recent quarter (Q1 2026), revenue was 0.1% 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.
- The dividend yield, at 3.1%, is on the high side.
Points to watch
- Debt is somewhat higher than equity (debt ratio 230.8%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-18Filing2025 business and audit reports filed. Consolidated revenue about ₩605.4 billion (+1.2%), operating profit about ₩3.5 billion (-87.7%), and net profit about -₩1.4 billion, a swing to a loss.A year confirmed in which core revenue held but profit plunged on subsidiary losses and rising costs. It nullifies interpretation of trailing valuation on last year's earnings. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed. Revenue about ₩158.1 billion, similar to a year earlier, and net profit about ₩1.9 billion, back in positive territory (down versus the same quarter last year).Shows core earning power is intact but subsidiary restructuring costs are still weighing on margins (short-term neutral; a medium-term turning point for whether recovery continues). Source
- 2026-03-26DividendRegular general meeting results disclosed. Year-end dividend of ₩250 per share (dividend yield about 2.8%) and approval of financial statements.Maintaining a cash dividend despite the swing to a loss continues the shareholder-return stance (a medium-term stabilizing factor). Source
- 2026-02-24UpdateDisclosure adjusting conversion price, warrant exercise price and exchange price. The exercise prices of share-conversion and subscription rights attached to previously issued bonds were adjusted.A reminder that a possible increase in share count (dilution) remains. Depending on the scale of exercise, there is a risk of dilution of existing shareholders' per-share value. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated net profit (swing to loss) | -₩1.4 billion(net_income -1,379,677,426) | — | Confirmed | link |
| Q1 2026 revenue | ₩158.1 billion(revenue 158,057,594,682) | — | Confirmed | link |
| Dividend per share (DPS) | ₩250 | — | Confirmed | link |
| Forward P/E on this year's expected earnings | approx. 25x(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-11Amended filing
- 2026-03-11Amended filing
- 2026-02-27Disclosure
- 2026-02-25Shareholders' meeting notice
- 2026-02-24Disclosure
📖 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.