HLB Life Science splits into a healthcare division that generates its actual revenue and cash from consumable medical devices such as disposable syringes and needles, and a pharmaceutical division that holds an oncology pipeline including the oral anticancer drug rivoceranib. On May 15 the company decided to discontinue its low-margin OEM segment, reorganizing the business around profitability, and amid ongoing fundraising such as convertible-bond issuance, the core medical-device business is recovering across 2025 and Q1 2026, even as the company as a whole remains in an operating loss for a fifth straight year. What stands out lately is that the picture could shift materially if the core-business revenue recovery flows through to earnings and drug approval and commercialization advance, set against a current ratio below 100% while convertible bonds add funds with attendant share dilution and approvals can be delayed - so rather than concluding either way in advance, this is a stock to follow through the disclosures.
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 58.0%).
- The most recent full-year net result was a loss.
- Revenue rose 39.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 61.0% higher than a year earlier.
- ROE is -33.6% (controlling-interest basis). It is below the sector average.
- Operating margin is -48.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder HLB 16.98% (corporate)
Controlling bloc incl. related parties 19.61%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- This company's money flows split into two broad tracks.
- The first is the healthcare (medical-device) division, which directly makes consumable medical devices such as disposable syringes, needles, and filter syringes, generating actual revenue and cash.
- The second is the pharmaceutical division, which holds the domestic development and sales rights (including some Japanese and European rights) to rivoceranib, an oral anticancer drug that targets vascular endothelial growth factor receptor 2 (VEGFR-2), along with an oncology pipeline including pyrotinib.
- In short, the money it earns now comes from medical devices, while the driver that moves the stock lies in expectations for drug approval and commercialization.
- Because a new drug generates almost no revenue until approval while R&D spending continues, the company as a whole runs an operating loss while it invests the money earned from medical devices into the drug.
- The latest close is ₩3,180 and the market capitalization is ₩387.7 billion.
- The price sits below its 20-day moving average (₩3,186) and its 60-day line (₩3,599).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the last 14 days on a 0-100 scale) is 47.9, a neutral level.
- The one-month change is +2.9%, the three-month change is -17.8%, and it stands -42.8% below its 52-week high.
- Its relative strength versus the KOSDAQ is 64 (1-99, converting the past year's return relative to the index with more weight on recent performance; higher means stronger than the market), which places it in roughly the top 35% of all stocks by strength.
- Over the past three months it led the index by 10.4%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On confirmed full-year (2025) figures, the P/E ratio (how many times a year's profit the price represents) cannot be calculated because the core business is still in an operating loss.
- This is not because the company is expensive but because it is at a pre-profit stage, and such stocks must be judged by other yardsticks.
- The P/B (how many times net asset value the price represents) is 1.30x, below the industry median of 1.44x, meaning it is not priced expensively relative to net assets.
- The ROE (how much is earned in a year on shareholders' equity) is -33.6% and the operating margin is -48.1%, showing an investment stage in which the core business does not yet recover its costs through revenue.
- The debt-to-equity ratio is 60.7%, so debt itself is not heavy, but the current ratio (assets convertible to cash within a year against debt due within a year) is 58.0%, below 100%, so short-term financial headroom is on the tight side - which is why funds are being topped up with convertible bonds.
- One point to note: last year's net loss of -₩99.8 billion includes not only the core-business operating loss (-₩22.0 billion) but also a large valuation gain or loss on financial instruments such as convertible bonds.
- As a result, this company's net profit swings widely between profit and loss year to year, so judging it from a single year's net profit line risks missing the substance.
- Revenue ran ₩53.5 billion in 2021, ₩99.6 billion in 2022, ₩34.6 billion in 2023, and ₩32.8 billion in 2024, then rose to ₩45.8 billion in 2025 - a choppy pattern of jumping sharply and then falling back that has recently turned up again.
- Looking only at the past two years it is recovering at +15.0% annually, and 2025 rose +39.6% over the prior year.
- Q1 2026 revenue also reached ₩15.2 billion, up +61.0% year on year, so the top-line recovery carries through on a quarterly basis as well.
- There is a clear basis for this recovery: a business reorganization is underway that winds down low-margin OEM (private-label) contract manufacturing and concentrates resources on the profitable core business and the drug side, so the top line is being rebuilt around higher-margin revenue.
- That said, the operating result was in the red for all five years from -₩18.5 billion in 2021 to -₩22.0 billion in 2025, and -₩6.5 billion in Q1 as well, so it is accurate to view the company now as being at a stage where revenue rises clearly but has not yet crossed over into profit.
- With no official target figures from the company, no earnings forecast is set for this year; the rough scale of next quarter's top line gauged from the quarterly revenue trend is only a reference.
- The revenue recovery is clear in confirmed results, whereas the point at which that revenue connects to profit must be confirmed by watching drug progress and core-business margin improvement together.
- The two axes of recent disclosures are a profitability-centered business reorganization and fundraising.
- On May 15, 2026 the company decided to discontinue its OEM (private-label manufacturing) segment, disclosing it as a material business suspension, and trading in the shares was temporarily halted the same day.
- It is a decision to wind down low-margin contract manufacturing and concentrate on the core business and the drug side; the near-term top line may shrink accordingly, but it is a direction that raises the quality of revenue.
- On May 28 the company decided to issue convertible bonds, and on May 29 and June 8 the early acquisition of prior-series bonds before maturity and the results of a new issue were disclosed in succession.
- Because convertible bonds can later convert into shares, they carry the possibility of an increase in shares (dilution), so the size and terms of the raise are best viewed together.
- In March, the business report, regular general meeting, change of CEO, and an IR (investor briefing) followed one another, showing a management change and a shift toward a commercialization footing together.
- This company's strengths and points to note are relatively clear.
- The strengths are that it has an actual revenue source in disposable syringes and needles and that this core business is clearly recovering across 2025 and Q1 2026; that the price relative to net assets (P/B 1.28x) sits below the industry median; and that holding rights to the anticancer drug rivoceranib leaves room for value to shift materially if approval and commercialization advance.
- The points to note are that the core business has been in an operating loss for all five years and revenue has not yet crossed over into profit, and that with a current ratio below 100%, share dilution follows as funds are topped up with convertible bonds.
- Net profit swings widely year to year due to financial gains and losses.
- In sum, this company is strong in phases where the core-business revenue recovery flows through to margins and profit and drug approval and commercialization advance, and weaker in phases where approval is delayed or fundraising and dilution repeat.
- It is not a stock to decide on in advance either way, but one to follow through the disclosures for whether the core-business loss narrows and whether the drug timeline advances.
🔎 Valuation vs peers Inconclusive
Given that the actual business splits into medical-device manufacturing and anticancer-drug development, the comparison uses an anticancer-drug developer within the same HLB group and KOSDAQ pharma/bio names whose size and data are verifiable; all figures are calculated on the same basis (current price) within the site.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HLB | — | 15.95x | -52.69% |
| Celltrion Pharm | 46.18x | 4.10x | 8.89% |
| Seegene | 29.48x | 1.40x | 4.75% |
Within the peer set, HLB Life Science's P/B (1.25x) is markedly lower than HLB (14.67x), which heavily reflects drug expectations, and lower than the profitable pharma/bio names Celltrion Pharm and Seegene - so on an asset basis it sits in a discount zone. However, because the core business is loss-making, no earnings-based valuation can be set from last year's confirmed (trailing) results, and forward has to lean on a DART seasonality approximation (2026 revenue of about ₩46.4 billion) since there is no official company forecast. This approximation estimates only revenue, not profit, so a valuation conclusion is hard to draw. Net assets also carry large swing factors such as the valuation gain or loss on convertible bonds, limiting the reliability of the P/B. Therefore, rather than declaring it cheap or expensive, it is viewed as an Inconclusive zone in which the assessment changes depending on whether drug progress and loss narrowing are confirmed.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩9.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩3,180 and the market capitalization is ₩387.7 billion. The price sits below its 20-day moving average (₩3,186) and below its 60-day moving average (₩3,599). 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 47.9, a neutral level. The one-month change is +2.9%, the three-month change is -17.8%, and the position relative to the 52-week high is -42.8%. Relative strength versus the KOSDAQ is 64 (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 65% of all stocks. Over the past three months it outpaced the index by 10.4%. 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 +10.36% / 6M -10.23% / 12M -36.39%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.30x is in line with 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 -33.6%, below the sector average (3.0%). The operating margin is -48.1%. The debt ratio is 60.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $22.9M | $21.7M | $30.3M | +39.61% ↑ faster |
| Operating profit | -$15.7M | -$15.8M | -$14.6M | — |
| Net profit | -$4.0M | $4.1M | -$66.1M | -1725.88% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $35.5M | $66.0M | $22.9M | $21.7M | $30.3M |
| Operating profit | -$12.2M | -$13.4M | -$15.7M | -$15.8M | -$14.6M |
| Net profit | -$32.6M | -$36.0M | -$4.0M | $4.1M | -$66.1M |
| Revenue CAGR | 4-yr avg -3.83% | ||||
Revenue rose 39.6% year over year (2023 ₩34.6 billion → 2024 ₩32.8 billion → 2025 ₩45.8 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.8%. The two-year revenue CAGR is 15.0%. In the most recent quarter (Q1 2026), revenue was 61.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 39.6% year over year, a sign of growth.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 58.0%).
- 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
- 2026-05-15UpdateDecided to discontinue the OEM (private-label manufacturing) segment and disclosed it as a material business suspension. Trading in the shares was temporarily halted the same day. A business reorganization to wind down low-margin contract manufacturing.In the short term the top line may shrink by the size of that segment, but it is a decision aimed at mid-term margin improvement by clearing out a low-margin business. Focus on the core business and the drug rises. Source
- 2026-05-28FilingDecided to issue convertible bonds through a material-event report. Convertible bonds can convert into shares under certain conditions.It has the effect of securing short-term operating and financial funds, but a future conversion into shares (dilution) and the change to the capital structure must be viewed together. Source
- 2026-05-29FilingDisclosed the acquisition, before maturity, of the 13th-series convertible bonds (including overseas convertible bonds) after their issuance. A procedure in which the company buys back previously issued bonds before maturity.A move to manage debt and conversion burden by clearing out existing bonds. Seen together with the new issue, it reads as a process of restructuring the funding mix. Source
- 2026-06-08FilingVoluntarily disclosed the securities issuance results of the 17th-series convertible bonds. The previously decided fundraising was completed as an actual issue.The raised funds are used to shore up short-term financial headroom, but with the convertible volume rising, the potential for future dilution must also be checked. Source
- 2026-03-26IRDisclosed the holding of an IR (investor briefing). It took place around the same time as the business report, regular general meeting, and change of CEO, dovetailing with the shift toward a commercialization footing.A setting in which the company explains its business direction through an official channel. A primary official source for confirming drug progress and the business-reorganization plan. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (price-to-book ratio) | 1.25x | BPS ₩2,439 · ₩3,060 1.25x | Confirmed | link |
| 2025 annual revenue | ₩45.8 billion | (2025.12) revenue approx. ₩45.8 billion | Confirmed | link |
| Q1 2026 revenue | ₩15.2 billion | (2026.03) revenue approx. ₩15.2 billion | Confirmed | link |
| 2026 revenue seasonality approximation | approx. ₩46.4 billion | — | Unverified | link |
Recent filings
- 2026-06-08Disclosure
- 2026-05-29Convertible-bond issuance
- 2026-05-28Material-fact report
- 2026-05-21Disclosure
- 2026-05-15Business suspension
- 2026-05-15Material-fact report
- 2026-05-15PeriodicQuarterly report
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-23PeriodicAnnual 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.