Korea United Pharm makes finished drugs — tablets, capsules and injectables — in-house and sells them to hospitals and clinics in Korea. By putting weight on incrementally improved drugs (such as once-daily formulations and combination pills) rather than plain generics, it keeps its operating margin high in the 17% range. Provisional results on April 30 and the Q1 report on May 14 confirmed higher revenue and higher net profit, while operating profit fell over the same period; on May 29 there was a disclosure of a court ruling/decision on a lawsuit involving a claim above a set threshold. What stands out lately is that its high margins driven by improved drugs, an ROE of 8.4% above the peer average, some of the lowest P/E and P/B in its group, a 3.3% dividend and a stable balance sheet are strengths, and that the forward P/E falling below the trailing figure is attractive — while over the past two years top-line growth has slowed and Q1 operating profit declined, so the margin trend needs checking quarter by quarter, and the uncertainty of the ongoing lawsuit's outcome must be watched as well.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 0.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.5% higher than a year earlier.
- ROE is 8.4% (total-net basis). It is above the sector average.
- Operating margin is 17.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kang Duk-young 15.21% (individual)
Controlling bloc incl. related parties 32.61%
With the controlling bloc holding 33%, the ownership structure is stable.
🔎 In-depth analysis
- Korea United Pharm is a traditional drugmaker that makes finished medicines — tablets, capsules and injectables — in-house and sells them to hospitals and clinics in Korea.
- What distinguishes it is that it has not stopped at plain generics (copies made with the same ingredient after a patent expires) but has put weight on improved drugs (medicines that enhance the convenience or efficacy of existing ones) — for example, formulations that release their effect slowly so they need be taken only once a day, or that combine two or three ingredients in a single pill.
- Chronic-disease treatments — cardiovascular (blood pressure, thrombosis), digestive, respiratory and diabetes — form a large share of revenue, and because the weighting toward such improved drugs is high, its operating margin (the share of revenue that becomes operating profit) stays high in the 17% range, above that of pure-generic makers.
- Most of its revenue is generated domestically, so its structure is influenced more by domestic prescribing and drug-pricing policy than by exchange rates.
- The latest close is ₩17,160 and the market cap is ₩273.0 billion.
- The price sits below the 20-day line (₩17,632) and below the 60-day line (₩18,907).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 39.0, a neutral level.
- The one-month change is -5.1%, the three-month change is -12.8%, and the position versus the 52-week high is -23.2%.
- Relative strength against the KOSPI is 18 (1-99, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 83% of all stocks by strength.
- Over the past three months it lagged the index by 30.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis the P/E ratio (how many times one year's net profit the price represents) is 7.13x and the P/B (how many times net assets per share the price represents) is 0.60x.
- ROE (how much is earned in a year on shareholders' equity) is 8.4%, well above the peer average of 3.0%.
- The operating margin is 17.2% and the debt ratio (debt relative to equity) is 114%, in line with the pharmaceutical-industry average, while a current ratio of 563% and interest coverage of 14x leave ample short-term liquidity and interest-servicing capacity.
- The P/E and P/B are on the low side, but rather than calling this stock expensive or cheap on trailing (last year's confirmed) figures alone, one should also watch where earnings are heading.
- The forward P/B on this year's earnings is 0.60x — actually lower than the trailing figure — making the picture of a low price relative to profitability all the clearer.
- Over five years revenue rose from ₩221.0 billion in 2021 to ₩288.8 billion in 2025 (6.9% a year on average).
- Over the past two years revenue held at ₩288.7 billion then ₩288.8 billion, so top-line growth has slowed, but because chronic-disease prescription drugs form a large share of revenue, the demand base laid down steadily regardless of the economy is solid.
- Net profit in 2025 was ₩38.3 billion, up 18% year on year, and in Q1 2026 revenue of ₩73.8 billion (+3.5%) came with net profit up 10.5% to ₩14.0 billion.
- Operating profit in the same quarter fell 18.3% year on year to ₩11.3 billion, but this reflects a temporary rise in cost items amid steady company-wide revenue; the larger trend is that both the top line and net profit are growing.
- Disclosures directly tied to the earnings trend have clustered over the past few months.
- Fair-disclosed provisional operating results on April 30 and the Q1 report on May 14 confirmed higher revenue and higher net profit, while also revealing that operating profit fell over the same period.
- On May 29 there was a disclosure of a court ruling/decision on a lawsuit involving a claim above a set threshold; depending on the outcome it could lead to a one-off cost or provision, so follow-up disclosures are worth watching.
- Into June, filings on large holdings and changes in the largest shareholder's holdings continued, making the ownership structure a matter to check.
- These are items verifiable only through primary disclosures, not general press reports.
- The strengths are clear: high operating margins centered on improved drugs, an ROE of 8.4% well above the peer average, yet the lowest P/E and P/B among comparable mid-sized drugmakers, a 3.3% dividend yield from a payout ratio in the 25% range, and a balance sheet that is stable in both debt and liquidity.
- Because the forward P/E on this year's earnings falls below the trailing figure, the key point is that one is looking at a company with profitability and dividends at a low price.
- Variables to watch together are that top-line growth has slowed over the past two years, that Q1 operating profit fell so the operating-line margin trend needs checking quarter by quarter, and the uncertainty of the ongoing lawsuit's outcome.
- In sum, while steady revenue, high margins, a low valuation and a stable balance sheet provide support, the appeal relative to price is clear; that appeal is tested if the operating-profit slowdown hardens into a long-term trend or if drug-pricing or litigation variables actually materialize as costs.
🔎 Valuation vs peers Undervalued
Not large-cap bio names such as Samsung Biologics (contract development and manufacturing) or Celltrion (biosimilars), but similarly sized traditional mid-sized drugmakers that sell finished drugs to domestic hospitals and clinics were chosen as the true peer set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JW Pharmaceutical | 8.97x | 1.49x | 16.65% |
| Whan In Pharmaceutical | 13.39x | 0.43x | 3.23% |
| Ilyang Pharmaceutical | 23.00x | 0.67x | 2.91% |
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
Against a peer set of traditional mid-sized drugmakers, Korea United Pharm sits at the lowest price band relative to both earnings (P/E) and assets (P/B), while its ROE is above the peer average. That combination is grounds for viewing the discount as excessive. However, these P/E and P/B are on a trailing (last year's confirmed) basis, and in an inflection period where operating profit fell in both 2025 and Q1 this year they cannot be taken at face value. No official company forward figures are available, so on an approximate net profit for this year converted from DART's recent three-year quarterly ratios (about ₩44.4 billion), the forward P/E falls further (a seasonality approximation, unverified). In conclusion, it is viewed as undervalued relative to peers, but before an earnings recovery is confirmed one should look at the reasons for the discount (flat top line, operating-profit slowdown, litigation variables) rather than firmly calling it cheap.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩72.6 billion | ₩10.2 billion | ₩7.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩17,160 and the market capitalization is ₩273.0 billion. The price sits below its 20-day moving average (₩17,632) and below its 60-day moving average (₩18,907). 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 39.0, a neutral level. The one-month change is -5.1%, the three-month change is -12.8%, and the position relative to the 52-week high is -23.2%. Relative strength versus the KOSPI is 18 (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 17% of all stocks. Over the past three months it lagged the index by 30.5%. 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 -30.49% / 6M -44.10% / 12M -65.41%
Key metrics vs sector median
Valuation
The P/E of 7.13x is below the sector median (15.98x). The P/B of 0.60x is below the sector median (1.37x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.4%, above the sector average (3.0%). The operating margin is 17.2%. The debt ratio is 114.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $184.9M | $191.3M | $191.4M | +0.02% ↓ slower |
| Operating profit | $36.4M | $37.3M | $32.9M | -11.90% ↓ slower |
| Net profit | $32.0M | $21.5M | $25.4M | +18.04% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $146.5M | $174.0M | $184.9M | $191.3M | $191.4M |
| Operating profit | $22.0M | $32.0M | $36.4M | $37.3M | $32.9M |
| Net profit | $19.0M | $30.0M | $32.0M | $21.5M | $25.4M |
| Revenue CAGR | 4-yr avg 6.91% | ||||
Revenue rose 0.0% year over year (2023 ₩278.9 billion → 2024 ₩288.7 billion → 2025 ₩288.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 11.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.9%. The two-year revenue CAGR is 1.8%. In the most recent quarter (Q1 2026), revenue was 3.5% 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.
- The dividend yield, at 3.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 0.0% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-29UpdateDisclosure of a court ruling/decision on a lawsuit involving a claim above a set threshold. Depending on the outcome there is a possibility of costs or provisions, so follow-up disclosures need checking.Medium term, it could lead to a one-off cost or contingent liability, making it a source of quarterly earnings volatility. Source
- 2026-05-14UpdateQ1 2026 quarterly report. Revenue of ₩73.8 billion (+3.5%) and operating profit of ₩11.3 billion (-18.3%) confirmed higher top line alongside lower operating profit.Short term, it is material confirming the profitability slowdown, providing a reference point for gauging when earnings recover. Source
- 2026-04-30EarningsQ1 provisional operating results fair-disclosure. Official material that flagged the trend of higher revenue and lower operating profit ahead of the quarterly report.Short term, a disclosure conveying the results direction to the market first, becoming a benchmark against the later confirmed figures. Source
- 2026-06-02FilingFiling of large-holding and largest-shareholder holdings changes. An item to check for any change in the ownership structure.No direct impact on results, but a clue to watch in terms of governance and supply-demand flow. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02OwnershipOwnership-change filing
- 2026-06-02OwnershipLargest-shareholder ownership change report
- 2026-05-29Corporate governance report
- 2026-05-29Litigation disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-10OwnershipOwnership-change filing
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipLargest-shareholder ownership change report
- 2026-04-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-08OwnershipLargest-shareholder ownership change report
- 2026-04-02OwnershipOwnership-change 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.