Daewha Pharmaceutical is a small-to-mid-sized drugmaker that builds revenue evenly across several prescription drugs such as Cefamethyl Tab and Furospan Tab, contract manufacturing, wholesale, active pharmaceutical ingredients, and cosmetics, with a differentiated asset in Liporaxel (DHP107), the world's first oral anticancer drug, layered on top and carrying growth options in expanded indications and overseas markets. In May 2026 the Ministry of Food and Drug Safety approved an additional breast-cancer indication for Liporaxel, widening the range of treatable diseases beyond gastric cancer, and an April corporate value-up plan was disclosed voluntarily, but the first quarter swung to a quarterly net loss. What stands out lately is that the stock is strong if Liporaxel's indication and overseas expansion translate into cash flow and core margins recover, but with thin core margins that make earnings swing and a debt-to-equity ratio of 285% and an interest coverage ratio of 0.64 leaving limited financial headroom, one has to first confirm whether the new-drug expectations embedded in a P/E of 106.5x actually flow through to results.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 284.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 51.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 4.2% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.0% higher than a year earlier.
- ROE is 2.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.2%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Ko Jun-jin 9.17% (individual)
Controlling bloc incl. related parties 19.81%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Daewha Pharmaceutical is a small-to-mid-sized drug company that makes and sells medicines directly.
- As of the first quarter of 2026, about 61% of revenue comes from sales of its own drugs such as Cefamethyl Tab (an infection treatment), Furospan Tab (a digestive treatment), and Magnes Tab (a mineral supplement); patch and plaster contract manufacturing (OEM) accounts for about 13%, drug wholesale for about 16%, active pharmaceutical ingredients for about 5%, and cosmetics and medical devices for about 6%.
- In other words, it builds revenue evenly across several general prescription drugs and contract manufacturing rather than relying on a single product.
- On top of that sits the asset the company invests in most: Liporaxel (DHP107), the world's first formulation of the anticancer compound paclitaxel made in an 'oral form' rather than an injection.
- Domestically, following gastric cancer, a breast-cancer indication was additionally approved in May 2026, and in China the drug was licensed out to a local company in 2017 (a structure of ₩28.3 billion total contract value plus sales royalties, of which ₩16.3 billion has been received) and has since obtained gastric-cancer marketing approval.
- In sum, this is a company with a growth option in Liporaxel's indication and overseas expansion layered on top of a stable, diversified general-medicine core.
- The latest close is ₩8,550 and market capitalization is ₩159.2 billion.
- The price sits below the 20-day line (₩9,756) and below the 60-day line (₩12,403).
- Trading below both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge comparing upward and downward strength over the last 14 days on a 0-100 scale) is 32.8, a neutral level.
- The one-month change is -21.0%, the three-month change is -38.6%, and the position versus the 52-week high is -63.3%.
- Relative strength versus the KOSDAQ is 38 (1-99; recent one-year return versus the index, weighted toward recent performance; higher means stronger than the market).
- That places it in roughly the top 62% for strength among all stocks.
- Over the past three months it lagged the index by 17.1%.
- Chart interpretation is best done alongside trading volume and the dates of filings.
- Profitability is thin and the financial structure has limited slack.
- ROE (how much is earned in a year on shareholders' equity; higher means capital is used well) is 2.2%, with an operating margin of 2.2% and a net margin of 1.2%, so the core margin itself is thin.
- The debt-to-equity ratio (the size of debt against equity) is 284.7%, and the current ratio (assets convertible to cash within a year against debt due within a year) is 51.3%, below 100%, so short-term repayment capacity is tight; the interest coverage ratio (how many times operating profit can cover interest) is 0.64, below 1, meaning this year's operating profit alone did not fully cover interest costs.
- These figures are points to check on financial headroom.
- Meanwhile, the P/E (how many times a year's profit the share price is) prints very high at 96.28x, but this is closer to an optical illusion born from the denominator, last year's net profit (about ₩1.7 billion), being pressed down near breakeven, rather than the company being expensive.
- A P/E when profit is at a trough is hard to use directly as evidence of being 'expensive'; once profit returns to a normal level, the P/E drops sharply at the same share price.
- The P/B (how many times book net assets the share price is) is 2.15x, and the dividend yield is 1.5% (₩150 per share), so the dividend, though small, is paid steadily.
- Long-term revenue grew gently at about 5% a year on average over five years, but profit swings year to year.
- Net profit moved sharply, from ₩2.2 billion in 2021 to ₩1.1 billion in 2022 to a ₩1.1 billion loss in 2023 to ₩0.5 billion in 2024 to ₩1.7 billion in 2025, because on top of a thin core margin, Liporaxel-related licensing fees and one-off items come and go, making earnings swing.
- That 2025 net profit appears to be +211% year over year is largely due to how low the prior-year base was.
- Looking at the recent trend, 2025 operating profit fell 53% year over year, and in the first quarter of 2026 revenue was roughly flat at +1% but operating profit fell 60%, producing a quarterly net loss of about ₩0.27 billion.
- The point to note here is that this company's profit this year is driven far more by when and how much Liporaxel-related income - expanded indications, overseas milestones, royalties - is recognized than by the core margin.
- Such income does not arrive evenly across quarters, so it is hard to guess the full year simply by multiplying a single first quarter by four.
- No official company revenue or profit target for this year could be confirmed, so rather than forcing a single figure, it is honestly left as 'unconfirmable.' That said, if the breast-cancer indication received in May takes hold in actual prescriptions and the China business advances, the direction of growth itself could point upward.
- Recent filings center on two things.
- First, on May 13, 2026, the Ministry of Food and Drug Safety additionally approved a breast-cancer indication for Liporaxel liquid (paclitaxel).
- Following gastric cancer, the range of treatable diseases widened, a positive change that can grow the revenue base over the medium term, with the actual revenue contribution to be confirmed over time.
- Second, on April 1, 2026, the company filed a corporate value-up plan (voluntary disclosure).
- It is a company-level plan to improve shareholder value and capital efficiency, though the disclosed text did not confirm specific revenue, profit, or ROE targets for this year.
- Beyond these, a quarterly report was filed on May 15, and the results of the regular shareholders' meeting in late March, a decision to provide collateral for a third party, and reports of changes in holdings by executives and major shareholders followed.
- That the provision of collateral recurs is a point to examine together with the currently tight financial headroom.
- The strengths are clear.
- The core business is diversified across several general prescription drugs and contract manufacturing, so revenue itself has grown gently over five years, and holding a differentiated asset in the oral anticancer drug Liporaxel keeps growth options alive, such as the added domestic breast-cancer indication and progress in the China business.
- On price, too, it sits well below the short- and mid-term lines and has corrected enough that the RSI is near a depressed zone.
- The points to consider are that the thin core margin makes earnings swing around breakeven, the first quarter of 2026 turned to a quarterly net loss, and a debt-to-equity ratio of 285%, a current ratio of 51%, and an interest coverage ratio of 0.64 leave limited financial headroom.
- High multiples of a 106.5x P/E and a 2.38x P/B are numbers born not from strong results but from profit pressed to a trough plus Liporaxel expectations layered on, so they are justified if those expectations flow into actual revenue and royalties and remain a burden if they do not.
- In sum, this company is strong when Liporaxel's indication and overseas expansion connect to cash flow and core margins recover, and weak while new-drug momentum is delayed or cost and interest burdens drag on.
- Rather than concluding one way, it is a stock to watch by first confirming whether these conditions are met.
🔎 Valuation vs peers Inconclusive
A peer set of small-to-mid-sized domestic-focused drugmakers with similar business substance. Daewon Pharmaceutical is closest in revenue and market cap, while Shin Poong Pharmaceutical and Bukwang Pharmaceutical - whose valuations carry new-drug and pipeline expectations - serve as contrasts.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Shin Poong Pharmaceutical | 46.73x | 1.53x | 3.27% |
| Bukwang Pharmaceutical | 30.56x | 1.13x | 3.69% |
The headline P/E of 115x and P/B of 2.57x are the highest in the peer set, but it is hard to call that 'overvalued' outright. First, the denominator, last year's net profit of about ₩1.7 billion, was pressed down near breakeven, so the P/E is structurally inflated. A trailing P/E (a multiple based on past results) when profit is at a trough is unsuitable as a comparison yardstick. Second, a similar pattern appears at Shin Poong Pharmaceutical (P/E 51.6x), another case where new-drug expectations layered on low profit pushed the multiple up. Third, the closest in size, Daewon Pharmaceutical, has a P/B of 0.72x and an ROE of -0.5x, likewise weak in profitability but trading far lower on an asset-value basis. In the end, Daewha's high multiples reflect not strong core results but Liporaxel expectations priced in ahead, and with this year's profit swung by non-recurring, one-off income, a fair forward valuation cannot be pinned to a single figure. So without declaring it 'cheap' or 'expensive,' it is treated as Inconclusive, with the assessment hinging on whether the new-drug expectations are confirmed through actual revenue and royalties.
Price history Close · MA20 · MA60
The latest close is ₩8,550 and the market capitalization is ₩159.2 billion. The price sits below its 20-day moving average (₩9,756) and below its 60-day moving average (₩12,403). 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 32.8, a neutral level. The one-month change is -21.0%, the three-month change is -38.6%, and the position relative to the 52-week high is -63.3%. Relative strength versus the KOSDAQ is 39 (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 38% of all stocks. Over the past three months it lagged the index by 17.1%. 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 -17.06% / 6M -39.59% / 12M -44.53%
Key metrics vs sector median
Valuation
The P/E of 96.28x is above the sector median (15.98x). The P/B of 2.15x is above 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 2.2%, below the sector average (3.0%). The operating margin is 2.2%. The debt ratio is 284.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $93.7M | $99.0M | $94.8M | -4.25% ↓ slower |
| Operating profit | $1.3M | $4.4M | $2.1M | -52.89% ↓ slower |
| Net profit | -$760,070 | $352,209 | $1.1M | +211.15% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $77.6M | $87.4M | $93.7M | $99.0M | $94.8M |
| Operating profit | $2.2M | $3.9M | $1.3M | $4.4M | $2.1M |
| Net profit | $1.5M | $739,429 | -$760,070 | $352,209 | $1.1M |
| Revenue CAGR | 4-yr avg 5.12% | ||||
Revenue fell 4.2% year over year (2023 ₩141.4 billion → 2024 ₩149.4 billion → 2025 ₩143.1 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 52.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.1%. The two-year revenue CAGR is 0.6%. In the most recent quarter (Q1 2026), revenue was 1.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 284.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 51.3%).
- Revenue fell 4.2% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13FilingThe Ministry of Food and Drug Safety additionally approved a new breast-cancer indication for Liporaxel liquid (oral paclitaxel). Following the existing gastric-cancer indication, the range of treatable diseases expands.Over the medium term, Liporaxel's domestic prescription scope widens and the growth option strengthens, but the actual revenue contribution needs to be confirmed over time. Source
- 2026-04-01FilingFiled a corporate value-up plan (voluntary disclosure). A company-level plan setting out a direction for shareholder value and capital efficiency, but the disclosed text did not confirm specific revenue, profit, or ROE targets.A signal of intent to improve shareholder returns and capital efficiency, but with no confirmed quantitative targets the effect must be judged by subsequent execution. Source
- 2026-05-15EarningsFiled the Q1 2026 quarterly report. Revenue of about ₩37.0 billion (+1% year over year) was roughly flat, but operating profit fell about 60% and it posted a quarterly net loss (about -₩0.27 billion).Weaker core margins and the absence of one-off income set back short-term profitability. A factor that amplifies the volatility of annual profit. Source
- 2026-03-31UpdateDisclosure of a decision to provide collateral for a third party (including an amendment). The regular shareholders' meeting results were disclosed the same day.That the provision of collateral recurs is a point to examine together with the tight financial headroom of a 285% debt-to-equity ratio and a 51% current ratio. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and results | revenue approx. ₩37.0 billion, operating profit approx. ₩0.5 billion(-59.8%), approx. -₩0.3 billion | (2026.03): revenue ₩37.0 billion, operating profit | Confirmed | link |
| Revenue mix by business and product | approx. approx. 61%, OEM approx. 13%, approx. 16%, approx. 5%, · approx. 6% | (2026.03) : approx. · approx. 60.7%, OEM approx. 13.0%, approx. 15.8%, approx. 4.5%, · approx. 5.7% | Confirmed | link |
| Liporaxel additional breast-cancer indication approval | 2026-05-13 | DART : | Confirmed | link |
| Trailing P/E 115.09 | ₩190.3 billion ÷ net profit approx. ₩1.7 billion ≈ 115x | — | Unverified | link |
Recent filings
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13Disclosure
- 2026-04-24OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-01Disclosure
- 2026-04-01Disclosure
- 2026-03-31Amended filing
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
📖 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.