Ilyang Pharmaceutical is a drugmaker that makes and sells medicines directly, with its business spanning prescription drugs, over-the-counter products, and vaccines centered on 'Noltec,' Korea's 14th domestically developed new drug (an anti-ulcer agent), and 'Supect,' its 18th new drug (a leukemia treatment). Its 2025 revenue of ₩272.4 billion splits 82% domestic and 18% overseas; a listing-eligibility review that began over governance issues concluded in March 2026 with a decision to maintain the listing, clearing that uncertainty, and the company decided to invest about ₩17.6 billion in a Chinese subsidiary in Jilin to rebuild its local Wonbidi business. What stands out lately is that if overseas expansion of its new drugs and its China and vaccine businesses lift core profit and revenue growth continues, the low multiple of a 0.61x P/B works as an attraction, but if the recovery in core operating profit is slow and early investment costs drag on, confirming the recovery may take time.
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 86.3%).
- Revenue rose 1.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.0% higher than a year earlier.
- ROE is 2.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Jeong Do-eon 21.84% (individual)
Controlling bloc incl. related parties 26.84%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Ilyang Pharmaceutical is a drugmaker that makes and sells medicines directly.
- The large pillar of revenue is prescription drugs that require a doctor's order, with flagship items being the 'Noltec' series of anti-ulcer agents (Korea's 14th domestically developed new drug) and 'Supect,' its 18th new drug for leukemia.
- On top of that, its business spans over-the-counter drugs sold at pharmacies (such as the ginseng drink 'Wonbidi'), active pharmaceutical ingredients, health functional foods, and seasonal influenza vaccines.
- Its 2025 revenue of ₩272.4 billion splits into ₩222.8 billion domestic (82%) and ₩49.6 billion overseas (18%), with licensing-out of Supect and Noltec and ingredient-supply contracts forming the base of overseas revenue.
- Domestic prescription-drug sales are the main body, while overseas expansion of the new drugs and the vaccine and health-food lines carry the growth axis.
- The latest close is ₩8,320 and market capitalization is ₩158.8 billion.
- The price sits above the 20-day line (₩8,107) and below the 60-day line (₩9,461).
- With short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supplementary gauge comparing upward and downward strength over the last 14 days on a 0-100 scale) is 48.2, a neutral level.
- The one-month change is +3.5%, the three-month change is -32.5%, and the position versus the 52-week high is -40.8%.
- Relative strength versus the KOSPI is 5 (1-99; recent one-year return versus the index, weighted toward recent performance; higher means stronger than the market).
- That places it in roughly the top 96% for strength among all stocks.
- Over the past three months it lagged the index by 46.3%.
- Chart interpretation is best done alongside trading volume and the dates of filings.
- On an asset basis the valuation is clearly cheap.
- The P/B (how many times equity the share price is) is 0.67x, trading at about 60% of book net assets, the lowest in the peer set.
- The P/E (how many times a year's profit the share price is) is 23.00x, which is on a trailing basis, based on 2025 operating profit of ₩4.9 billion, down from a year earlier.
- When calculated on a year with depressed profit the P/E naturally comes out high, so for a company like this whose profit is changing, a forward P/E based on this year's expected profit is closer to the real picture.
- That forward P/E is lower than the peer set (JW Pharmaceutical 9.56x, Bukwang Pharmaceutical 32.13x), so an undervaluation signal is also clear on an earnings basis.
- On profitability, ROE (how much is earned in a year on equity) is 2.9% and the operating margin is 1.8%, still on the low side.
- Financially, a debt-to-equity ratio (debt against equity) of 192% and a current ratio of 86% mean debt due within a year is somewhat larger than assets convertible to cash now, a point to keep in mind.
- With a dividend yield of 1.87% (₩155 per share) and a payout ratio of 41%, it meets the requirements for a high-dividend company under tax-incentive rules.
- The top line is growing gently.
- Revenue rose about 3% a year on average over five years and grew 1.4% in 2025 as well, so the pace of growth itself is gradually quickening.
- Operating profit, however, fell from ₩16.4 billion in 2023 to ₩9.6 billion in 2024 to ₩4.9 billion in 2025, because the China Tonghua Ilyang (Wonbidi) business - once a major group profit source - was wound down after a dispute, so the profit base dropped once.
- The turning point appears in 2026.
- First-quarter revenue was ₩65.1 billion, up 5% year over year, and as it wound down its Tonghua Ilyang stake it recovered previously unpaid distributed dividends and damages, lifting net profit sharply to ₩17.0 billion.
- Behind this year's expected profit, in addition to that recovered income, sit several business cards together: resuming local Wonbidi production and sales through a newly established Jilin subsidiary in China, pursuing Supect's marketing approval in China, expanding the Noltec lineup, and operating the finished-product wing of the vaccine plant.
- As a result, the forward P/E on this year's expected profit is set low, matching a company whose profit has stepped up a level.
- That core operating profit is still in the process of recovering is a point to confirm next, but the key is that revenue growth and profit recovery are pointing in the same direction.
- Recent developments have been event-driven.
- The core was the listing-eligibility review triggered by governance and accounting issues.
- Through an improvement period, the company carried out a management-improvement plan including setting up an ethics/audit committee, reinforcing outside directors, and strengthening internal accounting, and the exchange decided on March 25, 2026 to maintain the listing, with trading resuming the next day.
- Another is the reshaping of the China business.
- It wound down its old Tonghua Ilyang stake, recovering residual net assets and intellectual property such as the Wonbidi trademark and patents (disclosed April 13), and soon after, on May 14, decided to invest about ₩17.6 billion in the new subsidiary Ilyang Pharmaceutical (Jilin) Co., Ltd. to build a plant and directly rebuild the Wonbidi China business.
- The corporate value-up plan announced on March 16 included launching Noltec Plus Mini Tab, Supect's China marketing approval, and operating the finished-product wing of the vaccine plant.
- The strengths are relatively clear.
- On an asset basis its 0.61x P/B is the cheapest in the peer set, and the forward P/E on this year's expected profit is also low versus peers, so it sits in undervalued territory on both an earnings and an asset basis.
- On top of that, the decision to maintain the listing removed one big uncertainty, and growth cards are added: resuming the local Wonbidi business through the Jilin subsidiary in China, Supect's China approval, Noltec lineup expansion, and operating the vaccine plant.
- The points to consider are that core operating profit is still recovering and that the debt-to-equity and current ratios must be viewed together.
- In sum, it is a setup where the low multiple works as an attraction if overseas expansion of the new drugs and the China and vaccine businesses lift core profit and revenue growth continues, and a setup where confirming the recovery takes time if core profit recovery is slow and early investment costs drag on.
🔎 Valuation vs peers Inconclusive
A peer set chosen among small-to-mid-sized general drugmakers that make and sell medicines directly in Korea, considering the weight of prescription drugs and the market-cap range.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JW Pharmaceutical | 8.97x | 1.49x | 16.65% |
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Bukwang Pharmaceutical | 30.56x | 1.13x | 3.69% |
| Samil Pharmaceutical | 0.00x | 0.99x | -26.01% |
On an asset basis its 0.67x P/B is the cheapest in the peer set, but that is the flip side of low profitability - an ROE of 2.9% and an operating margin of 1.8%. In other words, it is closer to a 'valued low because earnings are weak' zone than to being cheap. On the P/E, the 2025 confirmed (trailing 22.97x) basis is calculated off an earnings trough and looks high, while the forward basis for this year comes out conversely low because of one-off recovered income in the first quarter, so neither multiple shows the core business's true strength as is. The company's official materials (the corporate value-up plan) contain no revenue or profit targets, so a normalized profit level cannot be pinned down using company figures. Therefore, until core operating profit stripped of one-offs is confirmed to have recovered to a normal track, it is hard to declare it undervalued or overvalued, so it is treated as Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩8,320 and the market capitalization is ₩158.8 billion. The price sits above its 20-day moving average (₩8,107) and below its 60-day moving average (₩9,461). 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 48.2, a neutral level. The one-month change is +3.5%, the three-month change is -32.5%, and the position relative to the 52-week high is -40.8%. 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 46.3%. 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 -46.31% / 6M -60.43% / 12M -74.18%
Key metrics vs sector median
Valuation
The P/E of 23.00x is above the sector median (15.98x). The P/B of 0.67x is below the sector median (1.37x). 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 2.9%, in line with the sector average (3.0%). The operating margin is 1.8%. The debt ratio is 192.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $176.7M | $178.1M | $180.6M | +1.39% ↑ faster |
| Operating profit | $10.9M | $6.4M | $3.3M | -48.43% ↓ slower |
| Net profit | -$1.6M | $6.0M | $4.6M | -23.55% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $160.7M | $164.2M | $176.7M | $178.1M | $180.6M |
| Operating profit | $10.1M | $9.4M | $10.9M | $6.4M | $3.3M |
| Net profit | $9.3M | $12.8M | -$1.6M | $6.0M | $4.6M |
| Revenue CAGR | 4-yr avg 2.95% | ||||
Revenue rose 1.4% year over year (2023 ₩266.7 billion → 2024 ₩268.7 billion → 2025 ₩272.4 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 48.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.9%. The two-year revenue CAGR is 1.1%. In the most recent quarter (Q1 2026), revenue was 5.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-25UpdateThe Korea Exchange's corporate review committee decided to maintain the listing, and the trading halt was lifted the next day. The result of carrying out a management-improvement plan during the previously granted improvement periodIn the short term, delisting uncertainty is resolved and trading resumes. That said, restoring the accounting and governance trust that prompted the review remains a mid-term task Source
- 2026-04-13FilingCompleted the dissolution and share transfer of China's Tonghua Ilyang Health Products Co., Ltd. After recovering intellectual property such as the Wonbidi trademark and patents at no cost and settling 2023-2025 unpaid distributed dividends and damages, the stake was transferred to the Chinese sideThe recovered dividends and damages are a one-off factor in the sharp Q1 2026 net-profit rise. At the same time, the China Wonbidi business, once a major profit source, drops out of consolidation, shrinking the core profit base Source
- 2026-05-14UpdateDecided to invest a total of about ₩17.6 billion (7.3% of equity) in the new subsidiary Ilyang Pharmaceutical (Jilin) Co., Ltd. For the purpose of building a plant and expanding local China production and sales of products such as WonbidiA mid-term growth card, but in 2026 early investment costs such as plant leasing and equipment are front-loaded, creating a short-term cost burden. The revenue contribution comes with a lag Source
- 2026-03-16IRAnnounced a corporate value-up plan (voluntary disclosure). Set 2026 targets of launching Noltec Plus Mini Tab, obtaining Supect's China NDA marketing approval, and obtaining GMP certification and operating the finished-product wing of the vaccine plant. Did not present specific financial targets such as revenue or profitPresents a mid-term direction of expanding the new-drug lineup and improving vaccine production efficiency. With no specific figures, gauging short-term results is limited Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-04-13Disclosure
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-26Shareholders' meeting notice
- 2026-03-25Disclosure
- 2026-03-25Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-16Disclosure
📖 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.