HLB Pharmaceutical is classified under research and development, but in practice it manufactures and sells finished pharmaceuticals: its 2025 consolidated revenue of ₩205.6 billion splits into about ₩154.5 billion of its own products and about ₩51.0 billion of resale goods, and it runs a contract-sales-organization (CSO) structure in which an outside sales force sells its products on its behalf, so unlike loss-making biotechs whose value hinges on clinical success or failure, its revenue and profit actually come from drugs already on the market. On May 13 it decided on a rights offering to raise about ₩120 billion by issuing 10,762,332 new shares at an expected price of ₩11,150 - equal to about 33% of existing shares, a large dilution - after which the Financial Supervisory Service issued requests for corrective filings. What stands out lately is the two-sided picture: it has the strength of revenue rising fast from drugs already on the market (2025 +50%, Q1 +89.5%) with a profit, and of trading cheaper than the biotechs grouped with it on an asset-value basis; on the other hand, the rights offering can dilute per-share value, and with an operating margin of 0.5% still thin, whether the margin recovers must be checked each quarter.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 50.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 89.5% higher than a year earlier.
- ROE is 3.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 0.5%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HLB Life Science 16.15% (corporate)
Controlling bloc incl. related parties 20.94%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- HLB Pharmaceutical is classified as a research-and-development stock, but in practice it is a company that manufactures and sells finished pharmaceuticals (drugs made into a form that can be taken or prescribed directly).
- Its 2025 consolidated revenue of ₩205.6 billion splits into product revenue of about ₩154.5 billion and goods revenue of about ₩51.0 billion from buying and reselling other companies' drugs.
- On top of this it runs a pharmaceutical contract-sales-organization (CSO) structure in which an outside sales force sells its products on its behalf, so sales-commission income and the collection of receivables (money to be received later) are important axes of its results.
- Unlike loss-making biotechs whose value is decided by clinical success or failure, its revenue and profit actually come from drugs already selling in the market.
- The latest close is ₩12,240 and market capitalization is ₩401.5 billion.
- The price sits above its 20-day line (₩12,054) and below its 60-day line (₩14,044).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that weighs 14-day upward versus downward force on a 0-100 scale) is 49.5, a neutral level.
- The one-month change is +10.5%, the three-month change is -25.6%, and the position versus the 52-week high is -41.4%.
- Relative strength against the KOSDAQ is 61 (on a 1-99 scale that converts the past year's return against the index with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 39% of all stocks by strength.
- Over the past three months it led the index by 0.4%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On a confirmed annual basis, the P/E ratio (how many times a year's profit the share price is) is 87.80x, the P/B (how many times net assets per share the price is) is 3.21x, and ROE (how much it earns in a year on equity) is 3.6%.
- The reason the P/E looks high here is not that the company is expensive, but that it is at an inflection where it has just swung from loss to profit, so the profit in the denominator (2025 operating profit about ₩1.1 billion, net profit ₩4.6 billion) is still small.
- A P/E divided by the small number of a year with almost no profit naturally comes out large, so for this stock it is better read as a process of earnings climbing onto a normal track than as a 'burden.' If anything, the P/B of 3.11x on an asset-value basis is markedly lower than the clinical biotechs it is grouped with (8-45x), and the site's diagnostic also sees the valuation as 'undervalued.' The debt ratio (debt against equity) is 136.4% and the current ratio (assets convertible to cash within a year against debt due within a year) is 193.5%, so short-term paying capacity is sufficient.
- An interest coverage ratio of 1.44x is a level that covers interest with operating profit, a spot that will improve together as the margin climbs.
- Over five years, revenue grew at a 34.5% annual average, from ₩62.9 billion in 2021 to ₩205.6 billion in 2025, with the pace of increase quickening (2025 +50.0%, prior +0.8%).
- Q1 2026 revenue was ₩65.7 billion, a +89.5% surge over the same period a year earlier, so growth steepened further this year.
- This top-line expansion comes from product and goods lines already selling in the market running together with CSO sales, so it is different in character from revenue that leans on a single clinical result.
- That said, Q1 operating profit in the same quarter was ₩1.0 billion, down 48% from a year earlier, so profit has not yet caught up to the pace at which revenue is growing.
- In other words, the center of gravity of growth clearly lies in 'rapid top-line expansion,' and the next stage is how much of this increased revenue converts into profit.
- The biggest issue is the rights offering decided on 2026-05-13.
- The plan is to raise about ₩120 billion (₩55 billion facility funds, ₩50 billion operating funds, ₩15 billion debt repayment) by issuing 10,762,332 new shares at an expected price of ₩11,150 - equal to about 33% of the existing share count (32.8 million shares), a large dilution.
- The new-share allotment record date is 2026-07-01, the existing-shareholder subscription is August 10-11, and the scheduled listing date is September 1.
- After that, the Financial Supervisory Service's requests for corrective filings on the registration statement (May 13 and 27) followed, which should be seen as a signal that the issuance schedule and terms may be adjusted.
- The quarterly report (2026.03) and the annual report (2025.12) are the official documents confirming the results and business structure above.
- The strengths are clear.
- It is a pharmaceutical company where revenue is rising fast from drugs already on the market (2025 +50%, Q1 +89.5%) with a profit, not a loss-making clinical biotech, and on an asset-value basis (P/B) it sits distinctly cheaper than the biotechs grouped with it.
- For these reasons the site's diagnostic also classifies it as 'undervalued and growth.' Points to look at are (1) that a rights offering of about ₩120 billion, increasing the share count by nearly 33%, can dilute per-share value, and (2) that with an operating margin of 0.5% the margin is still thin, so top-line growth has not been sufficiently converted into profit.
- In sum, if the increased revenue leads to a margin recovery and the raised funds are used for facility and financial improvement, the undervaluation appeal sharpens; conversely, if only dilution remains and the margin stays thin, the appeal dulls.
- Either way, since revenue growth is alive, the key is to check each quarter whether the margin recovers.
🔎 Valuation vs peers Inconclusive
The site's 'research and development' group bundles large clinical-focused biotechs (Alteogen, SK Biopharm, LigaChem Biosciences), but HLB Pharmaceutical is a maker and seller of finished pharmaceuticals that already generates revenue and profit, so the business substance differs. Direct P/E and P/B comparison with these is therefore for reference only.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Alteogen | 113.48x | 36.11x | 31.82% |
| SK Biopharmaceuticals | 23.53x | 7.73x | 32.83% |
| LigaChem Biosciences | — | 8.62x | -18.04% |
The names bundled as the comparison set are loss-making, high-growth biotechs centered on new-drug value, so their position differs from the revenue- and profit-generating HLB Pharmaceutical (versus the same group its P/B is low and its ROE single-digit). Last year's confirmed P/E of 78.6x was computed on a small denominator in an inflection zone with almost no profit, so the trailing basis has little meaning, and for the forward there is no official company outlook, so only a DART seasonality revenue approximation can be referenced. Before the margin and the post-offering share count are settled together, calling it cheap or expensive is difficult, so judgment is held.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩75.5 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩12,240 and the market capitalization is ₩401.5 billion. The price sits above its 20-day moving average (₩12,054) and below its 60-day moving average (₩14,044). 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 49.5, a neutral level. The one-month change is +10.5%, the three-month change is -25.6%, and the position relative to the 52-week high is -41.4%. Relative strength versus the KOSDAQ is 61 (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 61% of all stocks. Over the past three months it outpaced the index by 0.4%. 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 +0.42% / 6M -15.31% / 12M -29.84%
Key metrics vs sector median
Valuation
The P/E of 87.80x is above the sector median (59.55x). The P/B of 3.21x is below the sector median (7.05x).
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
The operating margin is 0.5%. The debt ratio is 136.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $90.1M | $90.9M | $136.3M | +49.97% ↑ faster |
| Operating profit | -$13.0M | $976,917 | $705,073 | -27.83% |
| Net profit | -$12.9M | $1.3M | $3.0M | +126.35% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $41.7M | $71.2M | $90.1M | $90.9M | $136.3M |
| Operating profit | $322,266 | -$4.3M | -$13.0M | $976,917 | $705,073 |
| Net profit | -$8.8M | -$7.8M | -$12.9M | $1.3M | $3.0M |
| Revenue CAGR | 4-yr avg 34.48% | ||||
Revenue rose 50.0% year over year (2023 ₩136.0 billion → 2024 ₩137.1 billion → 2025 ₩205.6 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 27.8% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 34.5%. The two-year revenue CAGR is 23.0%. In the most recent quarter (Q1 2026), revenue was 89.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 50.0% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13UpdateRights-offering decision - raising about ₩120 billion (₩55 billion facility, ₩50 billion operating, ₩15 billion debt repayment) by issuing 10,762,332 new shares at an expected price of ₩11,150. Shareholder allotment followed by a public offering of forfeited shares.In the short term, the new shares equal about 33% of the existing share count, raising strong concern over per-share value dilution. In the medium term, the key is whether the raised funds lead to facility and financial-structure improvement. Source
- 2026-05-27UpdateFinancial Supervisory Service request for corrective filing on the rights-offering registration statement (an additional request following the May 13 one).A signal that the offering terms, such as the issue price and schedule, may be adjusted, so the possibility of changes to the subscription and listing schedule should be watched together. Source
- 2026-05-13EarningsQuarterly report (2026.03) - Q1 revenue ₩65.7 billion (+89.5%), operating profit ₩1.0 billion (-48.0%). The top line surged while profitability retreated.A quarter in which revenue growth and a profitability slowdown appeared together, a reference point for gauging whether the margin recovers after the offering. Source
- 2026-03-19FilingAnnual report (2025.12) - revenue ₩205.6 billion (products ₩154.5 billion + goods ₩51.0 billion), confirming the pharmaceutical manufacturing and sales and CSO sales structure.An official document showing the company's actual revenue composition and business structure, a basis for confirming the difference from the research-and-development classification. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩65.7 billion(+89.5% YoY) | ₩65,651,838,843 | Confirmed | link |
| 2025 annual revenue composition | ₩205.6 billion | ₩154.5 billion + ₩51.0 billion = ₩205.6 billion | Confirmed | link |
| Rights-offering new-share count and issue price | approx. ₩120.0 billion | 10,762,332 × ₩11,150 | Confirmed | link |
| 2026 annual revenue (approximation) | approx. ₩302.6 billion | — | Unverified | link |
Recent filings
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-27Amended filing
- 2026-05-22Disclosure
- 2026-05-13Amended filing
- 2026-05-13Material-fact report
- 2026-05-13PeriodicQuarterly report
- 2026-04-23OwnershipOwnership-change filing
- 2026-04-21Amended filing
- 2026-03-27Amended filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-19PeriodicAnnual business 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.