Dongkook Pharmaceutical (086450) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Dongkook Pharmaceutical is a drugmaker that pairs over-the-counter products such as the gum remedies Insadol and Igatan and the ointment Madecassol, and prescription products such as the anesthetic Pofol, with cosmetics and health-functional foods, and cosmetics such as the Madeca Cream line are its core growth engine. Cosmetics revenue rose from about ₩154.9 billion in 2023 to about ₩222.7 billion in 2025, accounting for roughly a quarter of total revenue (about ₩926.9 billion); the first-quarter 2026 report confirmed a surge in net profit, and the dividend is ₩200 per share (a payout ratio of about 14%). On the positive side, margin-rich cosmetics have been added as a growth engine on top of steady cash from traditional medicines, so profit is growing faster than revenue and the balance sheet is solid with net cash, while the caution is that cosmetics are sensitive to the economy, trends, and export regions, so the pace of growth can swing from quarter to quarter.
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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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 14.1% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.2% higher than a year earlier.
- ROE is 10.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.3%.
Ownership & governance As of 2025-12-31
Largest shareholder Dongkook Healthcare Holdings 20.62% (corporate)
Controlling bloc incl. related parties 44.23%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis Reading
Dongkook Pharmaceutical is a traditional drugmaker with a consumer-brand business layered on top. In over-the-counter products it is known for the gum remedies 'Insadol' and 'Igatan' and the wound ointment 'Madecassol.' In prescription products it sells hospital items such as the general anesthetic 'Pofol' (propofol), the antibiotic raw material teicoplanin, and contrast agents. On top of this, a healthcare segment bundling cosmetics and health-functional foods is growing quickly. In particular, cosmetics brands such as 'Madeca Cream,' which applies the Madecassol raw material (centella), are the core growth engine. Cosmetics revenue rose from about ₩154.9 billion in 2023 to about ₩222.7 billion in 2025. Roughly a quarter of total revenue (about ₩926.9 billion) comes from cosmetics, and this segment is also the fastest-growing.
The latest close is ₩19,200 and the market capitalization is ₩868.4 billion. The price sits above its 20-day moving average (₩18,376) and above its 60-day moving average (₩19,176). 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 55.6, a neutral level. The one-month change is -1.2%, the three-month change is -17.8%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSDAQ is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 23.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Starting with the valuation metrics: the P/E ratio (how many years of earnings the price reflects) is 13.15x and the P/B (how many times book equity the price reflects) is 1.28x. These rest on last year's results, so accounting for the pace of growth the burden is not large. On profitability, ROE (how much the firm earns on its equity in a year) is 10.0% and the operating margin is 10.4%, both solid versus peers. The finances are strong: the debt ratio (borrowings to equity) is a low 45% and the current ratio is 211%. Net debt is negative, meaning a net-cash position with about ₩56.2 billion more cash than debt. EV/EBIT (enterprise value divided by operating profit, the debt-adjusted counterpart to P/E) is 9.0x, lower than the P/E, meaning that because it has no debt and ample cash, reflecting debt actually makes it look cheaper. That said, the free-cash-flow yield (the ratio of cash actually generated to market capitalization) is 2.5%, not especially high given the cash used for growth investment.
Growth is steady and has picked up lately. Revenue rose from about ₩594.2 billion to ₩926.9 billion over five years, compounding at around 12% a year. In 2025 revenue rose 14.1% and operating profit 20.1% from the prior year, both records. In the first quarter of 2026 the trend became clearer still: revenue rose 12.2% year on year while net profit jumped more than 46%. The key point is that profit grew far faster than revenue, because the share of margin-rich cosmetics and healthcare has grown. The healthcare segment grew more than 26% to about ₩99.8 billion in the first quarter, with cosmetics overseas revenue at its center. Gross margin also improved. This shift in product mix is structural rather than one-off. So even though last year's P/E of 14x looks high, on this year's earnings the actual multiple falls lower.
Recent disclosures center on regular results and shareholder procedures. In March 2026 the 2025 annual report and audit report were released, confirming record results. The regular general shareholders' meeting was held around the same time. In May the first-quarter 2026 quarterly report was disclosed, showing the surge in net profit in the numbers. The dividend is ₩200 per share, a yield of about 1.0%, and the payout ratio is around 14%. As profit grows, dividend capacity grows alongside it.
The strengths are clear. On top of traditional medicines that steadily generate cash sits the growth engine of Madeca cosmetics. As the share of margin-rich cosmetics rises, profit is growing faster than revenue. The balance sheet is net cash, so it is little shaken. On last year's results a P/E of 14x can look expensive, but reflecting this year's profit growth the multiple falls lower, so the price burden relative to growth is not large. There are cautions too. Cosmetics are sensitive to the economy, trends, and export-region conditions, so the pace of growth can swing from quarter to quarter. It is premature to assume the first quarter's high profit growth rate carries straight through the full year. In sum, the stock is strong while cosmetics exports and margin improvement persist, and its growth premium narrows if cosmetics demand softens.
🔎 Valuation vs peers Fairly valued
Compared against mid-sized drugmakers that, like the company, combine traditional medicines with consumer healthcare such as cosmetics and health-functional foods.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dong Wha Pharm | 16.11x | 0.36x | 2.29% |
| Huons | 7.33x | 0.84x | 8.22% |
| Yuhan Corporation | 31.93x | 2.71x | 9.06% |
On last year's results, a P/E of 14x sits between Dong Wha Pharm (16x) and Yuhan (28x), and above Huons (8x). But because Dongkook's profit is growing faster than revenue, judging on last year's multiple alone creates an optical distortion. Reflecting this year's profit growth, the actual multiple falls to around 11x. Weighing its growth, net cash, and cosmetics premium together, the current price looks to be in a fairly valued range, neither excessive nor cheap. If cosmetics export growth continues, this multiple could read as more attractive.
Price history Close · MA20 · MA60
The latest close is ₩19,200 and the market capitalization is ₩868.4 billion. The price sits above its 20-day moving average (₩18,376) and above its 60-day moving average (₩19,176). 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 55.6, a neutral level. The one-month change is -1.2%, the three-month change is -17.8%, and the position relative to the 52-week high is -35.8%. Relative strength versus the KOSDAQ is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 23.3%. 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 +23.26% / 6M +46.96% / 12M +5.47%
Key metrics Computed vs sector median
Valuation
The P/E of 13.15x is in line with the sector median (15.02x). The P/B of 1.28x 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 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.239x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.9%, above the sector average (1.0%). The operating margin is 10.3%. The debt ratio is 45.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $513.5M | $570.5M | $651.1M | +14.12% ↑ faster |
| Operating profit | $47.0M | $56.5M | $67.8M | +20.06% ↓ slower |
| Net profit | $33.1M | $43.0M | $46.4M | +7.84% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $417.4M | $464.8M | $513.5M | $570.5M | $651.1M |
| Operating profit | $44.4M | $51.0M | $47.0M | $56.5M | $67.8M |
| Net profit | $35.4M | $37.2M | $33.1M | $43.0M | $46.4M |
| Revenue CAGR | 4-yr avg 11.76% | ||||
Revenue rose 14.1% year over year (2023 ₩731.0 billion → 2024 ₩812.2 billion → 2025 ₩926.9 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 20.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.8%. The two-year revenue CAGR is 12.6%. In the most recent quarter (Q1 2026), revenue was 12.2% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 10.9% points to solid profitability.
- Revenue grew 14.1% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-05-15EarningsFirst-quarter 2026 quarterly report disclosed. Revenue of about ₩251.0 billion (+12.2% year on year) and net profit of about ₩26.3 billion (+46% year on year), a record quarterly profit.Margin improvement led by cosmetics and healthcare is confirmed in the numbers, a factor that raises this year's earnings bar. Source
- 2026-03-12Earnings2025 annual report and audit report disclosed. Consolidated revenue of about ₩926.9 billion (+14.1%) and operating profit of about ₩96.6 billion (+20.1%), both records.Annual results confirming even growth across all business segments and expansion of the cosmetics segment. Source
- 2026-03-20FilingRegular general shareholders' meeting held and related procedures conducted (director appointments and the like).Annual shareholder agenda items such as governance and dividends were finalized. A regular event with no major change to the business direction. Source
- 2026-05-26FilingReport on large-holding status of shares (general) disclosed.A filing related to a change in a major shareholder's stake. A shareholding disclosure separate from results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩926,883,701,823 | approx. 9,269 | Confirmed | link |
| First-quarter 2026 net profit | ₩26,309,059,438 | approx. 263 | Confirmed | link |
| Cosmetics segment revenue trend | base | 2023 approx. 1,549 → 2025 approx. 2,227 | Unverified | link |
| 2026 net profit estimate | approx. 816 (self-estimate) | — | Unverified | — |
Recent filings Source
- 2026-05-26OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Shareholders' meeting notice
- 2026-02-12Shareholders' 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.