Yungjin Pharm is a pharmaceutical company that makes cephalosporin antibiotics for treating bacterial infections, along with cardiovascular and respiratory medicines, in-house. It holds a firm position in Korea's cephalosporin market and has mid- to large-size products such as the cholesterol treatment 'Omaron' and the enteral nutrition product 'Harmonilan.' As Japanese exports, once more than 40% of revenue, have shrunk to the low-teens percent, its structure is shifting toward domestic chronic-disease and respiratory products carrying revenue, and it is an affiliate of the KT&G Group. In July and October 2025 it signed single-sale and supply contracts (₩14.8 billion and ₩12.2 billion, respectively), securing an order-based revenue base, in November it issued ₩25.1 billion of private convertible bonds, and in May 2026 preliminary first-quarter results confirmed a swing to operating and net losses. What stands out lately is that revenue has grown gradually for five years, cephalosporin antibiotics are well established, supply contracts and facility expansion could feed into exports, and the share price has fallen nearly by half from its 52-week high. On the other side, first-quarter operating and net profit both swung to losses, and the company carries a debt-to-equity ratio of 287%, interest coverage below 1x, and the possibility of dilution from convertible bonds.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 286.9%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 0.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.5% lower than a year earlier.
- ROE is -0.2% (total-net basis). It is below the sector average.
- Operating margin is 1.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder KT&G 52.45% (corporate)
Controlling bloc incl. related parties 52.45%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Yungjin Pharm is a pharmaceutical company that makes and sells antibiotics and cardiovascular and respiratory medicines in-house.
- A major revenue axis is cephalosporin antibiotics (cefaclor, ceftazidime, and other treatments for bacterial infections), where it holds a firm position in Korea's cephalosporin market and also produces injectable antibiotics.
- Added to this are mid- to large-size products such as the cholesterol treatment 'Omaron,' the enteral nutrition product 'Harmonilan,' and the idiopathic pulmonary fibrosis treatment 'Fibro Tab.' In the past, cephalosporin antibiotic exports to Japan were large enough to exceed 40% of revenue, but recently that share has fallen to the low-teens percent, so the structure is now shifting toward domestic chronic-disease and respiratory products carrying revenue.
- The company is an affiliate of the KT&G Group and belongs to a large business conglomerate.
- The latest close is ₩1,165 and market capitalization is ₩213.1 billion.
- The price sits below the 20-day line (₩1,207) and below the 60-day line (₩1,448).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- RSI (a supplementary gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 40.2, a neutral reading.
- The price is -5.7% over one month, -31.7% over three months, and -49.5% from its 52-week high.
- Relative strength versus the KOSPI is 3 (on a 1-99 scale that weights recent one-year returns against the index more heavily toward the recent period; higher means stronger than the market).
- That places it in roughly the top 98% of all stocks by strength.
- Over the past three months it lagged the index by 46.1%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- In 2025, revenue was ₩254.3 billion and operating profit ₩3.4 billion (operating margin 1.3%), so the top line held up, but net profit was a slight loss of -₩0.23 billion.
- ROE (how much is earned on equity in a year) was -0.2%, showing almost no profit, the debt-to-equity ratio was 287%, and interest coverage (the extent to which operating profit can cover interest) was 0.82x, so covering interest fully from operating profit alone is tight.
- The P/E ratio (how many times one year of profit the share price represents) cannot be computed because of the loss, and P/B (how many times net assets) is 2.33x.
- That said, a higher P/B than peers is not in itself a risk.
- Once profit merely turns positive, an earnings-based metric becomes a more important yardstick than net assets.
- For now, because the first quarter was a loss, it is not even confirmed whether this year's profit will be positive, so it must first be noted that this is not the stage to present a reliable earnings-based (forward) valuation.
- Revenue has grown gradually at about 6.7% a year on average over five years, so the top line is not stagnant, but the swings in profit are large.
- Operating profit fell from ₩8.7 billion in 2024 to ₩3.4 billion in 2025, and net profit swung from a profit in 2024 (₩1.2 billion) to a slight loss in 2025.
- In the first quarter of 2026, revenue of ₩63.8 billion (-0.5% year on year) kept the top line similar, but operating profit swung to -₩1.8 billion and net profit to -₩2.3 billion (the same quarter a year earlier had operating profit of +₩2.6 billion and net profit of +₩0.98 billion).
- The top line is holding while profitability has weakened on a quarterly basis.
- This company did not separately disclose an annual target (future business and management plan) for this year, and with the first quarter in a loss, this year's expected profit (forward) is hard to pin down for the full year.
- So this year's key is not the size of the growth rate but whether the quarterly profitability that fell into losses returns to a profit track.
- Recent developments read along two threads.
- One is core-business supply contracts.
- In July and October 2025 the company signed single-sale and supply contracts (worth ₩14.8 billion and ₩12.2 billion, respectively) in succession, securing an order-based revenue base, and whether these contracts are one-off or repeat business is the key to future revenue recognition.
- The other is funding and finance.
- In November 2025 it raised funds by issuing ₩25.1 billion of private convertible bonds (CBs); because convertible bonds can later convert into shares and increase the share count (dilution), they are best viewed together with the debt-to-equity ratio of 287%.
- On top of this, a May 2026 fair disclosure of preliminary first-quarter results confirmed the swing to operating and net losses, and the same month it was formally reported in the quarterly report.
- In March, the 2025 business report and the shareholders' meeting were wrapped up.
- This is a stock where the strong and weak positions are relatively clearly divided.
- The strengths are the stability of the top line and the position of the core business.
- Revenue has grown gradually for five years, cephalosporin antibiotics are well established in Korea, and if the supply contracts signed in 2025 and the injectable-antibiotic facility expansion feed into actual exports and revenue, there is room to revive the reduced overseas share.
- The share price has also fallen nearly by half from its 52-week high, a position where expectations have cooled considerably.
- The weaknesses are profitability and finances.
- First-quarter 2026 operating and net profit both swung to losses, and on top of a debt-to-equity ratio of 287% and interest coverage below 1x, it carries the possibility of share-count dilution from convertible bonds.
- In short, it is strong if the supply contracts and expansion coming online are borne out by a return to quarterly profit, and weak if the export recovery is slow or losses and dilution overlap.
- Rather than pinning down the direction in advance, this is a place suited to tracking it while directly confirming whether quarterly profitability returns to positive.
🔎 Valuation vs peers Overvalued
We compared it against domestic small- and mid-size prescription-drug makers with a similar revenue scale of around ₩200 billion and a similar weight in chronic-disease and antibiotic products.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
Its P/B is more than three times higher than peers, so on a net-asset basis it is among the most expensive in its group. The P/E cannot be computed because of the loss, and trailing metrics that lean on last year's profit have low reliability in a phase where profit is turning down, such as the first-quarter swing to a loss. With a quarterly loss this year, it is uncertain whether forward profit will even be positive, so neither the company's official outlook nor a seasonal approximation can firmly establish an earnings-based valuation. In the end, the current premium is explained not by results but by expectations for the core-business position, supply contracts, and facility expansion, and until those expectations are borne out by a return to quarterly profit, it is a stretch to declare it either expensive or cheap.
Price history Close · MA20 · MA60
The latest close is ₩1,165 and the market capitalization is ₩213.1 billion. The price sits below its 20-day moving average (₩1,207) and below its 60-day moving average (₩1,448). 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 40.2, a neutral level. The one-month change is -5.7%, the three-month change is -31.7%, and the position relative to the 52-week high is -49.5%. Relative strength versus the KOSPI is 3 (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 2% of all stocks. Over the past three months it lagged the index by 46.1%. 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 -46.14% / 6M -62.87% / 12M -78.31%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.33x is above 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 -0.2%, below the sector average (3.0%). The operating margin is 1.3%. The debt ratio is 286.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $155.7M | $167.0M | $168.5M | +0.88% ↓ slower |
| Operating profit | $2.1M | $5.8M | $2.3M | -60.84% ↓ slower |
| Net profit | -$2.6M | $817,063 | -$150,888 | -118.47% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $129.9M | $144.7M | $155.7M | $167.0M | $168.5M |
| Operating profit | -$9.2M | -$4.9M | $2.1M | $5.8M | $2.3M |
| Net profit | -$7.7M | -$14.6M | -$2.6M | $817,063 | -$150,888 |
| Revenue CAGR | 4-yr avg 6.71% | ||||
Revenue rose 0.9% year over year (2023 ₩234.9 billion → 2024 ₩252.0 billion → 2025 ₩254.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 60.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.7%. The two-year revenue CAGR is 4.0%. In the most recent quarter (Q1 2026), revenue was 0.5% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 286.9%).
- 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 0.9% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-06EarningsPreliminary first-quarter 2026 operating results fair disclosure - revenue at last year's level, but a swing to operating and net lossesShort term: the confirmed deterioration in profitability weighs on sentiment. Medium term: whether it returns to a quarterly profit is the key variable. Source
- 2025-11-28UpdateCompleted issuance of ₩25.1 billion of private convertible bonds (second series) - fundraising, with possible dilution on future share conversionShort term: secures operating and investment funds. Medium term: the increase in share count on conversion (dilution) and the debt structure need to be viewed together. Source
- 2025-10-02UpdateSigned a single-sale and supply contract (restatement) - contract value about ₩12.2 billionMedium term: secures an order-based revenue base. Whether it is one-off or repeat business is the crux of revenue durability. Source
- 2025-07-31UpdateSigned a single-sale and supply contract (restatement) - contract value about ₩14.8 billionMedium term: a core-business supply contract secures some revenue visibility. Whether the demand is for exports or the domestic market is the interpretation point. Source
- 2026-03-12FilingFiled 2025 business report - reflects the reduced export share and investment (expansion) in injectable-antibiotic facilitiesMedium term: the falling reliance on exports is a factor weakening revenue quality, but the expansion is a foothold for meeting future overseas demand. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit (swing to a loss) | -18 | — | Confirmed | link |
| 2025 annual net profit | -2.3 | 2025 | Confirmed | link |
| Single-sale and supply contract (about ₩12.2 billion) | — | DART ·approx. | Confirmed | link |
| This year's estimated annual revenue (seasonal approximation) | approx. 2,584 | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-28Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-06EarningsFair-disclosure notice
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Amended filing
- 2026-03-12Amended filing
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting notice
- 2026-03-03Audit 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.