Daewoong Pharmaceutical (069620) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daewoong Pharmaceutical is a full-line drugmaker selling prescription medicines supplied to hospitals and pharmacies, over-the-counter products such as Ursa, in-house-developed new drugs (the gastroesophageal reflux treatment Fexuclue and the diabetes drug Envlo), and the botulinum toxin Nabota, sold in the US as Jeuveau. Envlo received marketing approval in Mexico and the combination drug Envlogem has been filed for domestic approval, while the company is broadening its pipeline through external in-licensing, including a long-acting semaglutide injection, and Fexuclue added a domestic indication as a combination therapy for Helicobacter eradication. Worth noting recently is that, despite ROE of 19.5% placing profitability in the upper tier of its peers, the stock trades at a P/E of 7.4x, far below large drugmakers, leaving room for undervaluation as a strength; against that, the timing of normalization from the distribution overhaul that drove the sharp Q1 operating-profit drop, a negative FCF yield, and a debt ratio of 134.8% are cautions to watch.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Pharmaceuticals (profitable)” (Biotech & Pharmaceuticals), a type typically read first through P/E.
Established, profit-generating drugmakers earn fairly steady revenue from prescriptions and product sales, which makes their earnings reasonably predictable. That is why price-to-earnings (P/E) — the share price set against current net income — is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 10.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 6.0% higher than a year earlier.
- ROE is 19.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.3%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Daewoong 52.29% (corporate)
Controlling bloc incl. related parties 61.34%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Daewoong Pharmaceutical is a full-line drugmaker selling prescription drugs (ETC), in-house-developed new drugs, and botulinum toxin. The main axis of revenue is prescription drugs supplied to hospitals and pharmacies plus over-the-counter products such as Ursa. Onto this attach growth products: the in-house-developed gastroesophageal reflux treatment Fexuclue and the diabetes new drug Envlo. In particular, the botulinum toxin Nabota is sold in the US under the Jeuveau brand and is an export-led product, with more than 80% of all Nabota revenue coming from exports.
The latest close is ₩128,000 and the market capitalization is ₩1.5 trillion. The price sits above its 20-day moving average (₩123,805) and above its 60-day moving average (₩125,313). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.4, a neutral level. The one-month change is -4.8%, the three-month change is -10.6%, and the position relative to the 52-week high is -34.0%. Relative strength versus the KOSPI is 22 (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 22% of all stocks. Over the past three months it outpaced the index by 5.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times a year's earnings the price represents) is on the low side at 7.79x. The P/B (how many times net assets the price represents) is 1.45x. Profitability is good: ROE (how much the company earns in a year on its equity) is high at 19.5%, and the operating margin is 12.5%. On the balance sheet, the debt ratio (debt relative to equity) is somewhat high at 234.8%, but with an interest-coverage ratio of 5.2x interest is comfortably covered. On enterprise-value metrics, EV/EBIT (akin to a debt-adjusted P/E) is 10.7x and EV/Sales (enterprise value divided by revenue) is 1.3x. However, the FCF yield (actual cash earned relative to market cap) is -6.4%, as recent investment and working-capital burdens have left cash flow negative. This should be read together as a sign that cash recovery is still lagging earnings.
The top line is growing steadily. Revenue in 2025 was ₩1,570.9 billion, up 10.4% from the prior year, with growth accelerating. Operating profit also rose 33.0% to ₩196.8 billion. The 692% surge in net profit is a base effect from 2024 net profit being compressed by a one-off factor, so it should not be over-interpreted. In the first quarter of 2026, revenue rose 6.0% to ₩377.8 billion, but operating profit fell 42.6%. The cause was a temporary drop in prescription-drug shipment volume as the distribution network was reorganized around hub wholesalers, along with higher cost of goods and selling and administrative expenses. We view this as a temporary transition cost, not structural deterioration. Net profit in fact rose 29%. The growth drivers - Nabota exports and digital healthcare (+51.8% in the first quarter) - continue. We see this year's earnings at roughly the same level as 2025, reflecting the first-half distribution-overhaul burden. In that case the forward P/E is around 7.7x, a picture in which the current low valuation does not break down much going forward.
The recent flow shows expanded new-drug sales alongside pipeline in-licensing. Envlo received marketing approval in Mexico, and the combination drug Envlogem has been filed for domestic approval - continuing the overseas and indication expansion of its in-house new drugs. At the same time it is broadening its pipeline by in-licensing a long-acting semaglutide injection for obesity, aging-related mRNA technology, and a 15-PGDH inhibitor from outside. Fexuclue added a domestic indication as a combination therapy for Helicobacter eradication. In May it disclosed preliminary first-quarter results. Progress on commercializing the new drugs and development results from the newly in-licensed compounds are the focal points going forward.
The strength to watch is clear. It has a business structure that grows on its own new drugs and export-led Nabota, and ROE of 19.5% puts profitability in the upper tier of its peers. Even so, it trades at a P/E of 7.4x, far below large drugmakers such as Hanmi Pharmaceutical and Yuhan. This leaves room to read as an undervaluation signal. There are cautions, too. Even if the sharp Q1 operating-profit drop is temporary, it needs confirmation of when the distribution overhaul's impact on results normalizes. With a negative FCF yield, whether cash generation keeps up with earnings is also a point to watch. A debt ratio of 134.8% is not low either. In sum, if new drugs and exports grow as planned and the distribution-overhaul effect clears, the undervaluation stands out; conversely, if distribution normalization is delayed or the SG&A burden persists, the earnings recovery could be delayed.
🔎 Valuation vs peers Undervalued
Uses as its peer set the large and mid-sized Korean full-line drugmakers with a high share of in-house new drugs and prescription drugs.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanmi Pharmaceutical | 29.54x | 3.85x | 13.54% |
| Yuhan Corporation | 31.93x | 2.71x | 9.06% |
| Chong Kun Dang | 12.25x | 0.93x | 7.62% |
| Jeil Pharmaceutical | 6.77x | 0.74x | 10.78% |
Daewoong Pharmaceutical trades at a P/E of 7.4x, below not only Hanmi Pharmaceutical (32.9x) and Yuhan (28.8x) but also Chong Kun Dang (12.2x). Yet its ROE of 19.5% is the highest in the peer set and its revenue growth of 10.4% is also ahead. That profitability and growth are better while the valuation is instead lower leaves ample room to view it as undervalued. Unlike the past metrics distorted by the 2024 net-profit plunge, 2025 net profit (₩195.9 billion) is close to operating profit (₩196.8 billion), so it is not a figure with large one-off effects. On a forward basis it is also around 7.7x, so the low valuation is maintained. That said, the Q1 operating-profit volatility from the distribution overhaul and the negative FCF should be weighed together as discount factors.
Price history Close · MA20 · MA60
The latest close is ₩128,000 and the market capitalization is ₩1.5 trillion. The price sits above its 20-day moving average (₩123,805) and above its 60-day moving average (₩125,313). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.4, a neutral level. The one-month change is -4.8%, the three-month change is -10.6%, and the position relative to the 52-week high is -34.0%. Relative strength versus the KOSPI is 22 (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 22% of all stocks. Over the past three months it outpaced the index by 5.2%. 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 +5.16% / 6M -37.81% / 12M -57.40%
Key metrics Computed vs sector median
Valuation
The P/E of 7.57x is below the sector median (15.02x). The P/B of 1.45x is above the sector median (1.10x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 19.7%, above the sector average (1.0%). The operating margin is 11.3%. The debt ratio is 126.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $966.2M | $999.4M | $1.1B | +10.42% ↑ faster |
| Operating profit | $86.1M | $103.9M | $138.2M | +33.01% ↑ faster |
| Net profit | $85.5M | $17.4M | $137.6M | +691.83% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $810.0M | $899.3M | $966.2M | $999.4M | $1.1B |
| Operating profit | $62.3M | $67.3M | $86.1M | $103.9M | $138.2M |
| Net profit | $17.2M | $29.7M | $85.5M | $17.4M | $137.6M |
| Revenue CAGR | 4-yr avg 8.04% | ||||
Revenue rose 10.4% year over year (2023 ₩1.4 trillion → 2024 ₩1.4 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 33.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.0%. The two-year revenue CAGR is 6.9%. In the most recent quarter (Q1 2026), revenue was 6.0% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 19.7% points to solid profitability.
- Revenue grew 10.4% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-21FilingSigned a technology in-licensing agreement for a 4-week long-acting semaglutide injection for obesitySecures pipeline aimed at entering the obesity-treatment market. A medium- to long-term new growth axis, though development and commercialization will take time. Source
- 2026-05-26FilingIn-house diabetes new drug Envlo tablet 0.3mg approved for marketing in Mexico and combination drug Envlogem filed for domestic approvalOverseas expansion and formulation diversification of an in-house new drug. A factor broadening the medium- to long-term export-revenue base. Source
- 2026-05-12EarningsQ1 2026 preliminary results disclosure: consolidated revenue ₩377.8 billion (+6.0%), operating profit ₩22.2 billion (-42.6%), net profit ₩25.5 billion (+29.0%)Operating profit fell on lower prescription-drug volume and higher costs from the distribution-network overhaul, while net profit rose. A temporary transition burden, with the timing of normalization the key. Source
- 2026-04-30FilingFexuclue tablet approved for an added domestic indication as an antibiotic combination therapy for Helicobacter eradicationExpands the prescribing range for the in-house new drug Fexuclue. A positive factor broadening the revenue base. Source
- 2026-05-12FilingSigned a technology in-licensing agreement for INV008 (a 15-PGDH inhibitor)Expands development compounds through external pipeline in-licensing. A matter of securing medium- to long-term new-drug candidates rather than near-term results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated revenue, operating profit, and net profit | revenue ₩377.8 billion / operating profit ₩22.2 billion / net profit ₩25.5 billion | 1 | Confirmed | link |
| 2025 annual revenue | 1₩570.9 billion | (2026.03) | Confirmed | link |
| 2026 forward P/E (in-house estimate) | approx. 7.7x | — | Unverified | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-26Disclosure
- 2026-05-26Disclosure
- 2026-05-21Disclosure
- 2026-05-20Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-07Disclosure
- 2026-04-30Disclosure
- 2026-04-10Disclosure
- 2026-03-27Disclosure
📖 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.