Suheung is the No. 1 maker of empty hard capsules that hold medicine, with about 95% of the domestic market, and it also makes the raw-material gelatin itself, handling everything from raw material to finished product within one company. Its largest revenue share today, however, comes from contract manufacturing of health-functional foods - making other brands' vitamins, omega-3 and the like (about 40%) - alongside hard capsules, raw materials, pharmaceutical contract work and cosmetics. On February 13 a profit-structure change disclosure flagged a large rise in 2025 profit, and a ₩500-per-share dividend (yield of about 2.7%) was declared; following a treasury-share disposal in December 2025, the May 14 Q1 report confirmed a recovery with operating profit up 83.8%. What stands out lately is the entry barrier of roughly 95% domestic hard-capsule share, recovering profit, and a valuation below peers (such as Novarex) at a 0.40x P/B and a forward P/E of about 3.6x, plus a 2.7% dividend - all strengths. The caution is the capital-intensive structure with a 217% debt ratio, and that quarterly margins can swing with health-food demand, gelatin prices and exchange rates.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 217.1%).
- Revenue rose 10.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.5% higher than a year earlier.
- ROE is 8.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.0%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yang Ju-hwan 25.01% (individual)
Controlling bloc incl. related parties 52.83%
With the controlling bloc holding 53%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Suheung started as a maker of empty capsules (hard capsules) that hold medicine, and it remains the No.
- 1 player with most of the domestic hard-capsule market (about 95%).
- It also makes the gelatin that is the raw material for capsules itself, a structure that handles everything from raw material to finished product within one company.
- The largest share of revenue today, though, is not capsules themselves but 'health-functional-food contract manufacturing.' In this business, when another brand orders, it plans and produces products such as vitamins and omega-3 on their behalf, accounting for about 40% of total revenue.
- In sum, the revenue mix is largest in contract manufacturing of health-functional foods, followed by hard capsules, raw materials such as gelatin, pharmaceutical contract work, and cosmetics.
- Rather than a simple 'chemical company,' it is closer in substance to a contract-manufacturing specialist that makes capsules and health-functional foods on others' behalf.
- The latest close is ₩19,190 and the market cap is ₩222.0 billion.
- The price sits above its 20-day line (₩18,424) but below its 60-day line (₩19,403).
- With the short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supplementary gauge that weighs upward against downward momentum over the past 14 days on a 0-100 scale) is 52.1, a neutral level.
- The price is up 6.6% over one month and up 6.3% over three months, and stands 38.3% below its 52-week high.
- Its relative strength versus the KOSPI is 27 (on a 1-99 scale that converts return against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 74% of all stocks by strength.
- Over the past three months it lagged the index by 15.1%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The valuation metrics are on the low side.
- The P/E (how many times a year's earnings the price represents) is about 4.5x and the P/B (how many times equity the price represents) is 0.45x, trading at less than half of net asset value.
- On profitability, ROE (how much is earned in a year on equity) is 8.9%, above the peer average, with an operating margin of 7.0%.
- One thing to view alongside is that the debt ratio (debt against equity) is somewhat high at 217%; this is a typical trait of a capital-intensive business that pours large sums into capsule and gelatin plants and equipment, and interest coverage (how many times operating profit covers interest) is an item that improves together as profit recovers.
- Another important point is that the P/E of about 4.5x is based on 2025 booked (trailing) earnings.
- The forward P/E on this year's expected profit is lower still at about 3.6x, so in a profit-recovery phase the this-year figure shows the real value more accurately than the trailing number.
- Revenue rose 10.6% year on year to ₩722.3 billion in 2025, with the pace of growth gradually quickening.
- More striking is profit.
- Net profit grew fast - ₩6.1 billion in 2023, ₩18.3 billion in 2024, ₩43.5 billion in 2025 - and in Q1 2026 the recovery carried straight through, with revenue of ₩201.6 billion (up 11.5%), operating profit of ₩21.2 billion (up 83.8%) and net profit of ₩14.5 billion (up 118.9%).
- Operating profit jumping more than 80% while revenue rose in single digits reflects operating leverage - where revenue beyond fixed costs drops straight into profit - working together with a rising share of higher-value products.
- Capsules, at No.
- 1 share, lay a stable base, while the growth driver is health-functional-food contract work whose demand keeps rising.
- As this demand, utilization and mix improvement mesh, the forward P/E on this year's expected profit comes down to about 3.6x.
- This is even lower than the trailing P/E on last year's booked earnings (about 4.5x), reflecting that Q1 operating profit already grew more than 80% year on year - directly showing the recovery - so this year's profit expectations have risen accordingly.
- For reference, in reading a P/E the trailing basis (last year's booked earnings) and the forward basis (this year's expected profit) mean different things, and in a recovery phase it is natural for the this-year P/E to come out lower.
- Recent flow centers on regular disclosures and shareholder returns.
- On February 13, 2026, a change in revenue or profit structure of 30% or more was disclosed, formalizing that 2025 profit rose sharply year on year, and on February 26, 2026, a year-end dividend of ₩500 per common share for 2025 was declared (yield of about 2.7%).
- Earlier, in December 2025, a treasury-share disposal was decided and completed, disclosing a change in shareholder returns and capital management.
- In March the business and audit reports were filed normally, and on May 14 the Q1 2026 report confirmed the recovery with operating profit up 83.8%.
- Rather than separate events such as large new orders or company official targets, the core of the current narrative is a recovery in results confirmed step by step through quarterly and annual disclosures.
- This is a stock with clear strengths: the entry barrier of roughly 95% domestic hard-capsule share, a business broadened by health-functional-food contract work whose demand is rising, and profit recovering clearly after passing the 2024 trough.
- Added to that, a 0.40x P/B, a trailing P/E of about 4.5x and a forward P/E of about 3.6x are all lower on both metrics than peers in the same health-food contract space (such as Novarex, at about 6x P/E and about 0.9x P/B), showing the price is cheap relative to profit and assets.
- A 2.7% dividend is on top.
- Points to view alongside are the capital-intensive structure with tight financial room at a 217% debt ratio, and that quarterly margins can swing with health-food demand, raw-material (gelatin) prices and exchange rates.
- In short, as long as profit recovery and margin improvement continue, the low valuation stands out and the structure is strong; conversely, in a phase where demand turns down or cost and interest burdens grow at the same time, the pace of recovery can slow.
🔎 Valuation vs peers Undervalued
Compared with health-functional-food and capsule contract-manufacturing (CDMO) and pharma-related names. Because health-functional-food contract manufacturing is Suheung's largest revenue share, Novarex and Kolmar BNH in the same space serve as the primary peer set, with the pharma-contract and holding-type Daewoong as a secondary reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Novarex | 6.79x | 0.95x | 13.99% |
| Kolmar BNH | 0.00x | 0.69x | -6.41% |
| Daewoong | 5.66x | 0.84x | 14.88% |
Compared with Novarex in the same health-food contract space (about 7x P/E, about 1x P/B), Suheung is lower on both metrics at about 5x P/E and 0.44x P/B. Versus a profitable peer, its net-asset-based valuation (P/B) is about half, a large discount. That said, the trailing P/E on last year's booked earnings is hard to take at face value, sitting at an inflection past the 2024 margin trough, and factoring in recovering profit tends to lower the multiple further. The discount appears to stem from the financial burden of a 217% debt ratio and 1.64x interest coverage. Rather than declaring it 'cheap' outright, it is more apt to understand it as a structure where a low valuation may stand out if profit recovery continues, while the financial burden limits how far that goes.
Price history Close · MA20 · MA60
The latest close is ₩19,190 and the market capitalization is ₩222.0 billion. The price sits above its 20-day moving average (₩18,424) and below its 60-day moving average (₩19,403). 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 52.1, a neutral level. The one-month change is +6.6%, the three-month change is +6.3%, and the position relative to the 52-week high is -38.3%. Relative strength versus the KOSPI is 27 (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 26% of all stocks. Over the past three months it lagged the index by 15.1%. 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 -15.09% / 6M -43.42% / 12M -59.60%
Key metrics vs sector median
Valuation
The P/E of 5.11x is below the sector median (14.79x). The P/B of 0.45x is below the sector median (0.97x). 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 8.9%, above the sector average (4.0%). The operating margin is 7.0%. The debt ratio is 217.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $394.1M | $433.0M | $478.7M | +10.57% ↑ faster |
| Operating profit | $28.5M | $22.4M | $33.3M | +48.35% ↑ faster |
| Net profit | $4.1M | $12.1M | $28.8M | +137.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $395.5M | $420.8M | $394.1M | $433.0M | $478.7M |
| Operating profit | $46.1M | $41.1M | $28.5M | $22.4M | $33.3M |
| Net profit | $35.6M | $22.5M | $4.1M | $12.1M | $28.8M |
| Revenue CAGR | 4-yr avg 4.89% | ||||
Revenue rose 10.6% year over year (2023 ₩594.6 billion → 2024 ₩653.3 billion → 2025 ₩722.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 48.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.9%. The two-year revenue CAGR is 10.2%. In the most recent quarter (Q1 2026), revenue was 11.5% 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.
- Revenue grew 10.6% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-02-13EarningsChange in revenue or profit structure of 30% or more disclosed - formalizing that 2025 profit rose sharply year on yearNear term: firmly signals the profit recovery to the market. Medium term: can be read as the starting point of a recovery phase after the 2024 margin trough. Source
- 2026-05-14EarningsQ1 2026 report - revenue ₩201.6 billion (up 11.5%), operating profit ₩21.2 billion (up 83.8%), net profit ₩14.5 billion (up 118.9%)Near term: confirms the recovery continues on operating leverage and mix improvement. Medium term: a reference point for the annual profit trend. Source
- 2026-02-26Dividend2025 year-end cash dividend of ₩500 per common share declared (including the resolution to convene the shareholder meeting)Near term: maintains shareholder returns with a yield of about 2.7%. Medium term: a point to check dividend capacity alongside the profit recovery. Source
- 2025-12-12FilingTreasury-share disposal decision - resolved to dispose of held treasury shares (result reported on December 17)Near term: a change related to share count and supply-demand. Medium term: a point to check shareholder-return and capital-management policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 net profit | ₩43.5 billion(net_income 43,488,701,594) | DART 2025 | Confirmed | link |
| Q1 2026 operating profit | ₩21.2 billion(op_income 21,235,425,836) | DART 2026 1 | Confirmed | link |
| 2026 year-end dividend (per share) | DPS ₩500 / 2.67% | DART | Confirmed | link |
| 2026 estimated net profit (in-house estimate) | approx. ₩54.0 billion | — | Unverified | — |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-04-09OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-17Audit report
- 2026-02-26Shareholders' meeting notice
- 2026-02-26Shareholders' meeting notice
- 2026-02-26Shareholders' meeting notice
- 2026-02-13EarningsEarnings 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.