Kyung Dong Pharm (011040) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Kyung Dong Pharm is a drugmaker founded in 1976, centered on prescription-only ethical drugs, with cardiovascular agents, digestive-tract agents and antihypertensives as its mainstays, and it also makes and sells active pharmaceutical ingredients and over-the-counter drugs. A February 2026 filing confirmed full-year revenue of ₩196.3 billion, operating profit of ₩7.7 billion and net profit of ₩8.5 billion, settling into profitability, and as a high-dividend company under the Special Tax Treatment Control Act it returns profit broadly to shareholders with a dividend yield of 6.4% and a payout ratio of 97.6%. What stands out recently is that as long as the earnings recovery continues through the year and dividend capacity holds, the cheap valuation and high dividend work together; but with revenue growth of 1.2% not fast, the earnings improvement comes mainly from a recovery in profitability, so whether the cost structure and prescriptions for mainstay products keep supporting the current margin is the key.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Pharmaceuticals (profitable)” (Biotech & Pharmaceuticals), a type typically read first through P/E.
Established, profit-generating drugmakers earn fairly steady revenue from prescriptions and product sales, which makes their earnings reasonably predictable. That is why price-to-earnings (P/E) — the share price set against current net income — is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.4% higher than a year earlier.
- ROE is 5.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.3%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2016-12-31
Largest shareholder Ryu Deok-hui 9.97% (individual)
Controlling bloc incl. related parties 45.73%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
Kyung Dong Pharm is a drugmaker founded in 1976 whose core business is making and selling pharmaceuticals. Its earnings backbone is prescription-only ethical drugs, with cardiovascular agents for the heart and blood vessels, digestive-tract agents and antihypertensives that lower blood pressure as mainstay products. On top of that, it makes and sells active pharmaceutical ingredients that serve as drug materials, and over-the-counter drugs that can be bought at a pharmacy without a prescription. Ethical drugs, once a prescription flow is established, tend to generate steady, continuing revenue, underpinning the company's revenue base. With a market capitalization of ₩145.2 billion, which is not large, it is worth watching not only the business itself but also the effect each earnings and dividend filing has on the share price.
The latest close is ₩4,975 and the market capitalization is ₩153.1 billion. The price sits above its 20-day moving average (₩4,931) and below its 60-day moving average (₩5,054). 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 51.9, a neutral level. The one-month change is -0.4%, the three-month change is -10.7%, and the position relative to the 52-week high is -19.2%. Relative strength versus the KOSDAQ is 66 (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 66% of all stocks. Over the past three months it outpaced the index by 33.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Annual revenue was ₩196.3 billion, operating profit ₩7.7 billion and net profit ₩8.5 billion. The operating margin is 3.9% and ROE (how much is earned in a year on shareholders' equity) is 3.7%, above the diagnostic sector average. The debt ratio (debt relative to equity) is 141% and the current ratio (assets that can be turned into cash within a year against debt due within a year) is 162%, giving reasonable short-term payment ability. The current P/E (how many times a year's earnings the price is) of 17.95x looks high on the numbers alone, but this is because the company's earnings are on the way up from a bottom, so last year's earnings are still set low. For such earnings-inflection stocks, the forward P/E based on this year's recovered earnings is closer to the real picture, and that value is below the sector median, which reads as an undervaluation signal. The P/B (how many times book value the price is) is also 0.64x, below 1x, so the price is set cheaper than the company's net assets.
Revenue rose from ₩162.7 billion in 2023 to ₩193.9 billion in 2024 and ₩196.3 billion in 2025, and above all the earnings recovery is distinct. Operating profit improved for two straight years, from a ₩25.0 billion loss in 2023 to a ₩2.6 billion profit in 2024 and a ₩7.7 billion profit in 2025, and net profit likewise turned from a loss to an ₩8.5 billion profit. This recovery accelerated further this year. First-quarter 2026 revenue rose 4.4% to ₩47.8 billion, but operating profit jumped 57.6% to ₩2.4 billion and net profit surged 190.6% to ₩4.7 billion. That earnings grew far more while revenue rose only slightly means that as loss-making items were cleaned up and the cost structure improved, the money kept from the same revenue thickened. This year's outlook calls for operating profit of ₩12.1 billion and net profit of ₩20.0 billion, a picture in which the earnings strength confirmed in the first quarter carries through the year and steps up a notch from last year. The forward P/E shows the market has not yet fully reflected this recovered earnings.
On February 13, 2026, an annual results-change filing confirmed revenue of ₩196.3 billion, operating profit of ₩7.7 billion and net profit of ₩8.5 billion, confirming in figures that earnings had settled into profitability. On March 11, a treasury-stock disposal results report showed the company directly adjusting share count and shareholder returns. On March 30, there was a voluntary disclosure of a corporate-value-enhancement-plan nature, containing the fact that the company, as a high-dividend company under the Special Tax Treatment Control Act, had confirmed a cash dividend. Indeed, with a dividend yield of 6.4% and a payout ratio (the share of earnings returned as dividends) reaching 97.6%, it returns earned profit broadly to shareholders, and the filings together show that dividends are one axis for viewing this company.
The strong point is clear. A dividend yield of 6.4% is a support that eases the cost of waiting while the price is subdued. That is, as long as the earnings recovery continues through the year as planned and dividend capacity holds, this stock is in a strong phase where a cheap valuation and a high dividend work together. On the other side, a point to watch is that revenue growth itself, at 1.2%, is not fast, so the earnings improvement comes mainly from a recovery in profitability. Accordingly, whether the cost structure and prescriptions for mainstay products keep supporting the current margin is the key, and if this flow wavers, the strength of the recovery expectation could weaken.
🔎 Valuation vs peers Undervalued
A peer group within pharmaceuticals and biotech with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ilyang Pharmaceutical | 23.41x | 0.64x | 7.91% |
| CMG Pharma | — | 0.52x | -5.00% |
| Jeil Pharmaceutical | 6.77x | 0.74x | 10.78% |
Within pharmaceuticals and biotech, we first looked at a public-data peer group with adjacent market capitalization. The current P/E (how many times a year's earnings the price is) is 17.95x and the P/B (how many times book value the price is) is 0.67x. That said, for lower-market-cap names, earnings swings and financing filings carry a large effect, so we did not draw firm conclusions from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩205.9 billion | ₩12.1 billion | ₩20.0 billion |
| Next quarter | Q2 2026 | ₩52.3 billion | ₩0.8 billion | ₩5.4 billion |
Price history Close · MA20 · MA60
The latest close is ₩4,975 and the market capitalization is ₩153.1 billion. The price sits above its 20-day moving average (₩4,931) and below its 60-day moving average (₩5,054). 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 51.9, a neutral level. The one-month change is -0.4%, the three-month change is -10.7%, and the position relative to the 52-week high is -19.2%. Relative strength versus the KOSDAQ is 66 (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 66% of all stocks. Over the past three months it outpaced the index by 33.9%. 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 +33.85% / 6M +21.72% / 12M -18.51%
Key metrics Computed vs sector median
Valuation
The P/E of 17.95x is above the sector median (15.02x). The P/B of 0.67x is below the sector median (1.10x). 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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.1%, above the sector average (1.0%). The operating margin is 4.3%. The debt ratio is 34.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $114.3M | $136.2M | $137.9M | +1.20% ↓ slower |
| Operating profit | -$17.5M | $1.8M | $5.4M | +192.20% |
| Net profit | -$14.5M | $3.8M | $6.0M | +55.93% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $124.8M | $128.4M | $114.3M | $136.2M | $137.9M |
| Operating profit | $11.1M | $5.8M | -$17.5M | $1.8M | $5.4M |
| Net profit | $8.9M | $8.5M | -$14.5M | $3.8M | $6.0M |
| Revenue CAGR | 4-yr avg 2.53% | ||||
Revenue rose 1.2% year over year (2023 ₩162.7 billion → 2024 ₩193.9 billion → 2025 ₩196.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 192.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.5%. The two-year revenue CAGR is 9.8%. In the most recent quarter (Q1 2026), revenue was 4.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 6.0%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-30UpdateCorporate-value-enhancement plan (voluntary disclosure): other material matters related to investment judgment - As a high-dividend company under the Special Tax Treatment Control Act, the main content was recorded without a separate corporate-value-enhancement plan attached. - The above 'Section 2. Main Content' includes forward-looking information and may change with future market conditions and the business environment. - The above 'Section 4. Decision Date' confirms a cash dividendPlanning material the company presented directly. If figures are present, treat them as the primary basis for the outlook box; if not, treat them only as directional material. Source
- 2026-02-13EarningsChange in revenue or profit structure of 30% or more (15% for large corporations): full-year revenue ₩196.3 billion, operating profit ₩7.7 billion, net profit ₩8.5 billionRecent confirmed or provisional earnings material. Check whether it moves in the same direction as the annual trend and whether any one-off factors are present. Source
- 2026-03-11UpdateTreasury-stock disposal results report: confirm the return termsA filing related to cash returns or a change in share count. Confirm whether earnings strength and cash flow provide support. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩4,975 | ₩4,975 | Confirmed | link |
| Latest quarterly results | revenue ₩47.8 billion, operating profit ₩2.4 billion | revenue ₩47.8 billion, operating profit ₩2.4 billion | Confirmed | link |
| Annual results | revenue ₩196.3 billion, operating profit ₩7.7 billion | revenue ₩196.3 billion, operating profit ₩7.7 billion | Confirmed | link |
| Outlook/plan filing source text | - . - '2.' , . - '4.' | - . - '2.' , . - '4.' | Confirmed | link |
| Earnings filing source text | revenue30%: revenue ₩196.3 billion · operating profit ₩7.7 billion · net profit ₩8.5 billion | revenue30%: revenue ₩196.3 billion · operating profit ₩7.7 billion · net profit ₩8.5 billion | Confirmed | link |
| Shareholder-return filing source text | check the payout terms | check the payout terms | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14PeriodicQuarterly report
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-13Shareholders' meeting notice
- 2026-03-11TreasuryTreasury-stock disposal decision
- 2026-03-10Shareholders' meeting notice
- 2026-03-06DividendCash/stock dividend decision (amended)
- 2026-03-05TreasuryMaterial-fact 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.