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.
At-a-glance assessment financial health · growth · profitability · valuation
- 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 3.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.9%.
- 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
- 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 most recent close was ₩4,980 and the market cap is ₩153.2 billion.
- The price sits below the 20-day line (₩5,012) and the 60-day line (₩5,264).
- Trading below both short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge comparing recent 14-day upward and downward strength on a 0-100 scale) is 46.1, a neutral level.
- The one-month change is +0.2%, the three-month change is -6.7%, and the position versus the 52-week high is -19.7%.
- Relative strength against KOSDAQ is 72 (1-99, converting return versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 27% of all stocks by strength.
- Over the past three months it outpaced the index by 27.5%.
- Chart reading is best done alongside trading volume and filing dates.
- 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 17.97x 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 | 23.00x | 0.67x | 2.91% |
| CMG Pharma | — | 0.64x | -5.00% |
| Jeil Pharmaceutical | 6.40x | 0.71x | 11.08% |
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 17.97x 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 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 ₩4,980 and the market capitalization is ₩153.2 billion. The price sits below its 20-day moving average (₩5,012) and below its 60-day moving average (₩5,264). 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 46.1, a neutral level. The one-month change is +0.2%, the three-month change is -6.7%, and the position relative to the 52-week high is -19.7%. Relative strength versus the KOSDAQ is 72 (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 73% of all stocks. Over the past three months it outpaced the index by 27.5%. 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 +27.53% / 6M +3.56% / 12M -16.79%
Key metrics vs sector median
Valuation
The P/E of 17.97x is in line with 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.
Intrinsic value (DCF estimate)
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 3.7%, above the sector average (3.0%). The operating margin is 3.9%. The debt ratio is 141.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $107.8M | $128.5M | $130.1M | +1.20% ↓ slower |
| Operating profit | -$16.5M | $1.7M | $5.1M | +192.20% |
| Net profit | -$13.7M | $3.6M | $5.7M | +55.93% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $117.7M | $121.1M | $107.8M | $128.5M | $130.1M |
| Operating profit | $10.4M | $5.5M | -$16.5M | $1.7M | $5.1M |
| Net profit | $8.4M | $8.1M | -$13.7M | $3.6M | $5.7M |
| 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 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 6.0%, is on the high side.
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 | ₩4,980 | ₩4,980 | 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 | : | : | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 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.