Whan In Pharmaceutical is a specialty drugmaker whose mainstay is treatments for neuropsychiatric conditions such as schizophrenia, depression, anxiety and dementia; about 80% of revenue comes from neuropsychiatric agents, with the schizophrenia treatments quetiapine and risperidone, antidepressants, and the dementia treatment donepezil at its core, and because it centers on chronic and psychiatric drugs with steady prescription flow, revenue volatility is low. After a profit trough was confirmed with 2025 annual revenue of ₩255.2 billion (-1.7%) and operating profit of ₩13.0 billion (-39.4%), first-quarter 2026 operating profit surged 78% year on year and the operating margin returned to a normal-year 13.2%, while it kept a high-dividend stance with ₩300 per share and a payout ratio of about 40.8%. What stands out lately is that with a No. 1 prescription base in a high-barrier field, solid finances (current ratio 404%) and a generous dividend, a P/B of 0.42x and a forward P/E of 8.17x all point to undervaluation across assets, earnings and dividends; on the other hand, margins can swing with drug-price cuts and costs, so whether the operating margin holds its normal-year level each quarter is the point to watch.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 1.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 18.2% higher than a year earlier.
- ROE is 3.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.1%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Won-beom 13.27% (individual)
Controlling bloc incl. related parties 23.27%
With the controlling bloc holding 23%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Whan In Pharmaceutical is a specialty drugmaker whose mainstay is treatments for neuropsychiatric conditions (acting on the brain and nerves) such as schizophrenia, depression, anxiety and dementia.
- About 80% of revenue comes from neuropsychiatric agents, and its core items are the schizophrenia treatments quetiapine and risperidone, the antidepressants Agotine and Efram Tab, the anti-anxiety drug Alpram, and the dementia treatment donepezil.
- On top of its own developed and manufactured products, it has broadened its lineup by licensing in central-nervous-system medicines in the Parkinson's, migraine and antidepressant fields from multinational drugmakers such as GSK.
- Because it centers on chronic and psychiatric drugs with steady prescription flow, revenue volatility is low; in years when a drug-price cut or a cost change comes in, profitability swings, but the prescription base itself is firm.
- The latest closing price is ₩9,790 and market capitalization is ₩182.1 billion.
- The price is below the 20-day line (₩9,846) and below the 60-day line (₩10,519).
- Sitting under both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores the strength of gains versus declines over the past 14 days on a 0-100 scale) is 43.6, a neutral level.
- The one-month change is -2.8%, the three-month change is -4.5%, and the position versus the 52-week high is -25.4%.
- Relative strength versus the KOSPI is 20 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- It sits in roughly the top 81% of all stocks by strength.
- Over the past three months it lagged the index by 24.0%.
- It is best to read the chart together with trading volume and the dates of disclosures.
- The P/E ratio (how many times one year's profit the share price represents) is 13.39x and the P/B (how many times book net assets the price represents) is 0.43x.
- A P/B of 0.42x is a price far below net assets, so on an asset basis it is clearly a cheap zone.
- It matters that the P/E of 12.93x is calculated on 2025 confirmed (trailing) results, a year in which profit fell sharply.
- Now that profit has turned to recovery, this trailing figure makes the stock look more expensive than its actual value, and the forward P/E reflecting recovered profit is around 8.17x, distinctly lower than peers.
- In other words, the P/E is not a 'burden' — it merely looks temporarily high because it is calculated on trough results.
- Finances are solid: the debt ratio (debt against equity) is 113.7%, but with a current ratio of 404% and an interest-coverage ratio of 95x, debt-repayment capacity is ample and cash-equivalent assets are abundant.
- ROE (how much is earned in a year per unit of equity) of 3.2% and the operating margin of 5.1% were depressed in 2025, but given the first-quarter recovery, this has the strong character of a temporary trough.
- With a dividend yield of 3.0% and a payout ratio of 40.8%, shareholder returns are also generous versus peers.
- Over five years the top line grew steadily at around 9% a year, from ₩177.8 billion in 2021 to ₩255.2 billion in 2025.
- Profit, however, fell from a peak in 2023 (operating profit ₩30.2 billion, net profit ₩29.8 billion) through 2025 (operating profit ₩13.0 billion, net profit ₩13.6 billion) as margins were compressed — the result of drug-price cuts and cost burdens overlapping.
- Then in the first quarter of 2026 the direction changed clearly, with revenue of ₩71.2 billion (+18.2%), operating profit of ₩9.4 billion (+77.7%) and net profit of ₩7.5 billion (+45.8%).
- The key is that the first-quarter operating margin recovered to 13.2%, a normal-year level.
- Because the top line had kept growing, once the compressed margin normalizes, profit recovers quickly.
- The forward P/E reflecting this year's estimated profit falling to as low as 6.5x is grounded in a recovery trajectory in which the demand recovery and margin normalization confirmed in the first quarter continue through the remaining quarters.
- This pairs with the point that a trailing P/E calculated on trough results tends to overstate value in a recovery phase.
- Viewed on a multi-year trend, the present is closer to a phase of margins returning from a trough to a normal year than a peak.
- The most important disclosure is the March 2026 corporate value-up plan (voluntary disclosure), in which the company formalized a direction to solidify its position in the psychiatric-treatment market, grow the top line and expand shareholder returns.
- Indeed, it sustained a high-dividend stance with ₩300 per share and a payout ratio of about 40.8%, increasing the total dividend from the prior year.
- In April, a fair-disclosure of preliminary first-quarter 2026 results confirmed a recovery in which operating profit surged 78% year on year and the operating margin returned to a normal-year 13.2%.
- In March, the 2025 business report was filed, confirming a profit trough with annual revenue of ₩255.2 billion (-1.7%) and operating profit of ₩13.0 billion (-39.4%), and in May a quarterly report and a large-holding report were filed in succession.
- The overall flow of disclosures points in one direction: 'profitability recovery plus strengthened shareholder returns.'
- The strengths are clear: a No.
- 1 prescription base in the high-barrier neuropsychiatric field; solid finances with a current ratio of 404% and an interest-coverage ratio of 95x and abundant cash; a generous dividend versus peers (3.0%); and the margin normalization confirmed in the first quarter of 2026.
- A P/B of 0.42x means the price is depressed relative to assets, and the forward P/E of 8.17x reflecting recovered profit is low versus peers, reading as a signal of undervaluation.
- In other words, all three axes — assets, earnings and dividends — point toward 'cheap.' The point to watch carefully is profit volatility.
- As the sharp 2025 profit drop shows, margins can swing with drug-price cuts and costs, so whether the operating margin holds its normal-year level (around 12%) each quarter is the point to watch.
- In sum, if the margin normalization that began in the first quarter continues, the low P/B, low forward P/E and high dividend all come to the fore; if the margin recovery stalls, top-line growth alone may make the re-valuation slow.
🔎 Valuation vs peers Undervalued
A peer group of specialty drugmakers in a similar market-cap range and of central-nervous-system and domestic prescription-drug names.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
| JW Pharmaceutical | 8.97x | 1.49x | 16.65% |
| Bukwang Pharmaceutical | 30.56x | 1.13x | 3.69% |
Within the peer group, Whan In Pharmaceutical's P/B of 0.45x is the lowest except for Dong Wha Pharm (0.37x), so the discount to assets is large. The trailing P/E of 13.9x looks mid-range, but it has the limitation of being calculated on 2025 trough results in which profit plunged. Given that the operating margin returned to a normal-year level in the first quarter, the forward multiple based on future profit is far lower than this. In other words, looking at asset value (low P/B) together with recovering profit, we judge the discount to be large and see it as 'undervalued.' That said, if the premise that the profit recovery continues throughout the quarters breaks down, the re-valuation could be slow, so rather than declaring it 'cheap,' it is more appropriate to understand it as 'a spot where the undervaluation comes to the fore as the recovery is confirmed.'
Price history Close · MA20 · MA60
The latest close is ₩9,790 and the market capitalization is ₩182.1 billion. The price sits below its 20-day moving average (₩9,846) and below its 60-day moving average (₩10,519). 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 43.6, a neutral level. The one-month change is -2.8%, the three-month change is -4.5%, and the position relative to the 52-week high is -25.4%. Relative strength versus the KOSPI is 20 (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 19% of all stocks. Over the past three months it lagged the index by 24.0%. 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 -23.97% / 6M -43.22% / 12M -66.79%
Key metrics vs sector median
Valuation
The P/E of 13.39x is below the sector median (15.98x). The P/B of 0.43x is below the sector median (1.37x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.639x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.2%, in line with the sector average (3.0%). The operating margin is 5.1%. The debt ratio is 113.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $152.7M | $172.1M | $169.1M | -1.69% ↓ slower |
| Operating profit | $20.0M | $14.2M | $8.6M | -39.44% ↓ slower |
| Net profit | $19.7M | $15.5M | $9.0M | -41.85% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $117.8M | $131.8M | $152.7M | $172.1M | $169.1M |
| Operating profit | $20.7M | $19.8M | $20.0M | $14.2M | $8.6M |
| Net profit | $17.7M | $15.9M | $19.7M | $15.5M | $9.0M |
| Revenue CAGR | 4-yr avg 9.46% | ||||
Revenue fell 1.7% year over year (2023 ₩230.4 billion → 2024 ₩259.6 billion → 2025 ₩255.2 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 39.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.5%. The two-year revenue CAGR is 5.2%. In the most recent quarter (Q1 2026), revenue was 18.2% 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 3.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 1.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-03-23FilingCorporate value-up plan (voluntary disclosure) — formalizing a direction of top-line growth and expanded shareholder returns by strengthening its position in the psychiatric-treatment marketIn the medium term, sets down in writing stronger shareholder returns such as dividends and the intent to grow. A basis for the continuation of the high-dividend stance. Source
- 2026-04-27EarningsFair-disclosure of preliminary consolidated first-quarter 2026 results — revenue ₩71.2 billion (+18.2%), operating profit ₩9.4 billion (+77.7%), net profit ₩7.5 billion (+45.8%)In the short term, the operating margin returns to a normal-year level (13.2%), confirming an exit from the 2025 margin trough. Source
- 2026-03-03DividendCash-and-in-kind dividend decision — ₩300 per share, a payout ratio of about 40.8% maintaining the high-dividend stance (total dividend expanded from the prior year)In the medium term, supports a shareholder-return appeal at a dividend-yield level of about 3.0%. Source
- 2026-03-12FilingFiling of the 2025 business report — annual revenue ₩255.2 billion (-1.7%), operating profit ₩13.0 billion (-39.4%), confirming a profit troughIn the short term, confirms the profit slowdown on a trailing (confirmed) basis. A baseline that contrasts with the subsequent quarterly recovery. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit (consolidated, preliminary) | approx. ₩9.4 billion | DART | Confirmed | link |
| 2025 annual revenue and operating profit | revenue 2,552, operating profit 130 | DART 2025 | Confirmed | link |
| Dividend per share (DPS) | ₩300 | DART | Confirmed | link |
| 2026 estimated net profit (recovery assumption) | approx. ₩27.0 billion(self-estimate) | — | Unverified | — |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-13PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-04-27EarningsFair-disclosure notice
- 2026-03-23Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-20Disclosure
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-04Shareholders' meeting notice
- 2026-03-03Shareholders' meeting notice
- 2026-03-03DividendCash/stock dividend decision
📖 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.