CMG Pharma is a core affiliate of the CHA Bio Group that researches, develops, manufactures in-house, and sells pharmaceuticals and health functional foods. The company is putting weight behind its 'STARFILM' oral dissolving film (ODF) technology, which produces medicines that melt instantly in the mouth, and applying it to improved formulations. Full-year 2025 results showed revenue of ₩105.2 billion, an operating loss of ₩3.7 billion, and a net loss of ₩10.1 billion, yet revenue rose for a third straight year, and in the first quarter of 2026 growth accelerated further while net profit turned positive — a sign that earnings may be passing a trough. In June the company also filed a disclosure terminating a supply contract. What stands out lately is a two-sided setup: if revenue growth carries through to a positive operating profit, the P/B of 0.64x — low versus peers — would stand out as undervalued, but on a full-year basis operating and net results are still in the red, and with a current ratio of 91.8% short-term liquidity is tight, so if the earnings recovery is delayed the losses and funding strain would show up first.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 91.8%).
- The most recent full-year net result was a loss.
- Revenue rose 6.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 23.7% higher than a year earlier.
- ROE is -5.0% (controlling-interest basis). It is below the sector average.
- Operating margin is -3.5%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder CHA Biotech 24.27% (corporate)
Controlling bloc incl. related parties 24.27%
With the controlling bloc holding 24%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- CMG Pharma is a core affiliate of the CHA Bio Group — a pharmaceutical company that researches, develops, manufactures in-house, and sells both pharmaceuticals and health functional foods.
- Its signature technology is 'STARFILM,' which makes medicine in a form that dissolves instantly in the mouth (an oral dissolving film, or ODF), and the company is focusing on applying this technology to improved formulations with better taste and stability.
- In other words, sales of its own manufactured drugs form the center of revenue, with health functional foods layered on top.
- Because its market capitalization is not especially large, a single disclosure can have a relatively outsized effect on revenue and finances.
- The latest closing price is ₩872 and the market cap is ₩129.2 billion.
- The price sits below the 20-day line (₩988) and below the 60-day line (₩1,339).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0–100 scale) is 31.3, a neutral level.
- The one-month change is -18.5%, the three-month change is -49.6%, and the position versus the 52-week high is -59.2%.
- Relative strength versus the KOSDAQ is 29 (1–99, converting the past year's return versus the index with more recent weighting — higher means stronger than the market).
- That places it around the top 72% of all stocks by strength.
- Over the past three months it lagged the index by 33.1%.
- It helps to read the chart alongside trading volume and disclosure dates.
- For the most recent year (2025), revenue was ₩105.2 billion, operating profit was -₩3.7 billion, and net profit was -₩10.1 billion, so the operating line was in the red.
- The operating margin was -3.5%, ROE (how much is earned in a year on equity) was -5.0%, and the debt ratio (debt relative to equity) was 51.8%.
- Because earnings are negative, the P/E ratio (how many times a year's earnings the share price is) cannot be calculated, so we look instead at the asset-based P/B (how many times book value the share price is).
- The P/B is 0.64x, which is low even compared with same-industry peers of similar market cap (Jeil Pharmaceutical 0.69x, Kyungdong Pharmaceutical 0.64x, Ilyang Pharmaceutical 0.59x), placing the shares in a cheap zone relative to assets.
- A debt ratio of 51.8% is not heavy, but with somewhat few readily cashable assets against debt due within a year (current ratio 91.8%), short-term cash flow is worth watching.
- Revenue rose for three straight years — ₩93.9 billion in 2023, ₩99.1 billion in 2024, and ₩105.2 billion in 2025 — with the growth rate accelerating from 5.5% to 6.2%.
- First-quarter 2026 revenue was ₩25.5 billion, up 23.7% from the same period a year earlier, so top-line growth picked up further pace.
- On the earnings side, operating profit is still a loss of -₩2.9 billion, but net profit turned positive at ₩0.1 billion.
- This can be read as a phase in which, amid rapid revenue growth, the bottom line is passing the trough of losses.
- That said, the company discloses year-over-year quarterly operating profit only on a cumulative basis, so it is hard to be definitive, and whether revenue growth carries through to the operating profit line is the next checkpoint.
- The most recent, on June 19, 2026, was a disclosure terminating a single supply/sales contract.
- How the amount and term of the terminated contract feed into future revenue recognition, and whether it was a one-off or recurring transaction, will shape the medium-term read.
- On February 11, an annual earnings-change disclosure confirmed revenue of ₩105.2 billion, operating profit of -₩3.7 billion, and net profit of -₩10.1 billion; it helps to check whether this is in line with the annual trend or mixed with one-off factors.
- Earlier, on December 29, 2025, an amended disclosure on new facility investment adjusted the end date of the investment period.
- As material the company itself presented as a plan, it can serve as a reference for production capacity and the outline of future revenue.
- The strengths are clear.
- Revenue rose for three straight years, growth accelerated in the first quarter of 2026, and net profit turned positive — a sign the bottom line is passing a trough.
- At 0.64x book value, the shares are lower than same-industry peers, placing them in a cheap zone relative to assets.
- The price has also already fallen roughly 60% from its high.
- On the other hand, points to watch are that operating and net results are still in the red on a full-year basis and short-term cash flow (current ratio 91.8%).
- So this is a stock where, 'if revenue growth carries through to a positive operating profit,' the low P/B could stand out as undervalued, and conversely, 'if the earnings recovery is delayed,' the losses and funding strain would show up first.
- The key is to confirm through quarterly results whether the recovery clues of top-line growth and the first-quarter profit continue.
🔎 Valuation vs peers Undervalued
A comparison set of pharmaceutical and biotech names with adjacent market caps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jeil Pharmaceutical | 6.40x | 0.71x | 11.08% |
| Ilyang Pharmaceutical | 23.00x | 0.67x | 2.91% |
| Kyung Dong Pharm | 17.97x | 0.67x | 3.73% |
We looked first at a public-data comparison set of pharmaceutical and biotech names with similar market caps. The current P/E cannot be confirmed, and the P/B (how many times book value the share price is) is 0.64x. However, because smaller-cap names are heavily affected by earnings swings and financing disclosures, 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 | ₩53.3 billion | — | — |
| Next quarter | Q2 2026 | ₩8.7 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩872 and the market capitalization is ₩129.2 billion. The price sits below its 20-day moving average (₩988) and below its 60-day moving average (₩1,339). 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 31.3, a neutral level. The one-month change is -18.5%, the three-month change is -49.6%, and the position relative to the 52-week high is -59.2%. Relative strength versus the KOSDAQ is 29 (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 28% of all stocks. Over the past three months it lagged the index by 33.1%. 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 -33.06% / 6M -41.64% / 12M -57.29%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.64x is below the sector median (1.37x).
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
Return on equity (ROE) is -5.0%, below the sector average (3.0%). The operating margin is -3.5%. The debt ratio is 51.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $62.2M | $65.7M | $69.7M | +6.19% ↑ faster |
| Operating profit | $2.0M | $676,247 | -$2.4M | -461.89% ↓ slower |
| Net profit | $4.3M | $1.8M | -$6.7M | -473.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $46.0M | $54.5M | $62.2M | $65.7M | $69.7M |
| Operating profit | $1.1M | $2.0M | $2.0M | $676,247 | -$2.4M |
| Net profit | $2.1M | -$257,249 | $4.3M | $1.8M | -$6.7M |
| Revenue CAGR | 4-yr avg 10.94% | ||||
Revenue rose 6.2% year over year (2023 ₩93.9 billion → 2024 ₩99.1 billion → 2025 ₩105.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 461.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.9%. The two-year revenue CAGR is 5.9%. In the most recent quarter (Q1 2026), revenue was 23.7% 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.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 91.8%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-06-19ContractTermination of a single supply/sales contract: check the detailed terms in the original filingThe contract amount and term are central to future revenue recognition. Whether it was a one-off or a repeatable transaction will shape the medium-term read. Source
- 2026-02-11EarningsChange of 30% or more (15% for large corporations) in revenue or profit/loss structure: annual revenue ₩105.2 billion · operating profit -₩3.7 billion · net profit -₩10.1 billionThis is recently confirmed or preliminary earnings material. Check whether it is in line with the annual trend and whether any one-off factors are present. Source
- 2025-12-29Update[Amendment] New facility investment: New facility investment / (2025.12.29) amended filing of new facility investment; amendment date 2025-12-29; 1. Amended disclosure document: new facility investment; 2. Original filing date: 2022-01-20; 3. Reason for amendment: change in the investment-period end date; 4. Amended item: before / after — 4. Investment period – end date 2025-12-31This is planning material the company itself presented. Where figures are given, treat them as a primary basis for the outlook box; where none are given, treat it only as directional material. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩872 | ₩872 | Confirmed | link |
| Most recent quarterly results | revenue ₩25.5 billion, operating profit -₩2.9 billion | revenue ₩25.5 billion, operating profit -₩2.9 billion | Confirmed | link |
| Annual results | revenue ₩105.2 billion, operating profit -₩3.7 billion | revenue ₩105.2 billion, operating profit -₩3.7 billion | Confirmed | link |
| Original contract disclosure | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Original earnings disclosure | revenue30%: revenue ₩105.2 billion · operating profit -₩3.7 billion · net profit -₩10.1 billion | revenue30%: revenue ₩105.2 billion · operating profit -₩3.7 billion · net profit -₩10.1 billion | Confirmed | link |
| Original outlook/plan disclosure | []: /(2025.12.29) 2025-12-29 1. 2. 2022-01-20 3. 4. 4. - 2025-12-31 | []: /(2025.12.29) 2025-12-29 1. 2. 2022-01-20 3. 4. 4. - 2025-12-31 | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-13Disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-11Disclosure
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-02-11EarningsEarnings 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.