Neopharm is a dermocosmetic company specialized in the "skin barrier," generating revenue across several brands, including Atopalm for sensitive and atopic skin, Real Barrier for skin-barrier care, and Zeroid medical skincare, a cosmetics consumer-goods firm that sustains high margins through brand trust and prescriptive credibility. In March, a corporate value-up plan emphasized stronger shareholder returns, and a 2025 payout ratio of about 42% was confirmed; in May, Q1 provisional results (revenue ₩36.2 billion, operating profit ₩8.7 billion) and an IR showed a flow of continued double-digit growth and high margins. The key point to watch: an operating margin of 21.8% and double-digit growth are sustained together, and with a P/E of 8.3x on expected earnings and a dividend yield of about 4.3%, the undervaluation and return appeal is clear; against that, as is typical of cosmetics, results can swing with brand popularity and channel shifts, and high domestic reliance makes it sensitive to household consumption and competitive intensity.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 11.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 14.6% higher than a year earlier.
- ROE is 14.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 21.8%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Itshanbul 40.12% (corporate)
Controlling bloc incl. related parties 41.33%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis
- Neopharm is a dermocosmetic (dermatology-based cosmetics) company specialized in the "skin barrier." It generates revenue across several brands, including Atopalm skincare for sensitive and atopic skin, Real Barrier specialized in skin-barrier care, Zeroid medical skincare, Dermabee body moisturizing, and Tels clean beauty.
- Its core business is developing, making, and selling cosmetics, and it also handles some health functional foods.
- In industry classification it is grouped under "chemicals," but it is more accurate to view it as a cosmetics consumer-goods firm, with revenue weighted toward the domestic market and exports supplementing it.
- Because it holds pricing through brand trust and prescriptive credibility rather than a particular ingredient or device, the standout feature is that its margins stay high.
- The latest close is ₩18,920 and the market cap is ₩303.2 billion.
- The price sits above the 20-day line (₩17,674) and above the 60-day line (₩18,383).
- Above both its short- and mid-term moving averages, the trend is favorable.
- The RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 57.9, a neutral level.
- The one-month change is +11.2%, the three-month change is +11.5%, and the position versus the 52-week high is -14.6%.
- Relative strength versus the KOSDAQ is 85 (on a 1-99 scale that converts one-year return against the index with recent performance weighted more heavily; higher means stronger than the market).
- That places it around the top 14% of all stocks by strength.
- Over the past three months it has outpaced the index by 50.3%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- On valuation, the P/E (price divided by one year of earnings) is 10.90x, the P/B (price divided by net assets) is 1.55x, and the dividend yield is about 4.3% (a dividend of ₩750 per share).
- On profitability, ROE (the return earned on equity in a year) is 14.2%, the operating margin is 21.8%, and the net margin is 21.1%, upper-tier within the cosmetics sector.
- The financials are ample, with a current ratio of 840% and interest coverage of 44.8x, so cash and repayment capacity are plentiful.
- A debt ratio of 111.5% looks high on the number alone, but most of the debt is short-term operating items and the borrowing burden is small, so the real risk is low.
- The important point here is that the P/E of 9.76x is computed on earnings already confirmed last year (trailing).
- For a company whose earnings are clearly rising, the forward P/E based on this year's earnings is closer to the real picture, and Neopharm's P/E on this year's expected earnings is 8.3x, even lower than the confirmed multiple.
- In other words, there is no reason to view the trailing P/E as a "burden"; relative to earnings, the share price is in fact on the cheap side.
- On the top line, 2025 revenue was ₩132.2 billion, up 11.1% year on year, having grown steadily in the low teens over recent years.
- Operating profit (+16.7%) and net profit (+20.6%) rose faster than revenue, so margins improved.
- In Q1 2026 as well, revenue +14.6%, operating profit +11.9%, and net profit +20.8% carried the growth straight through, and net profit in particular rose in the 20% range for two consecutive quarters.
- The low P/E of 8.3x on this year's expected earnings is underpinned by this flow.
- Brands with the clear strength of the skin barrier keep drawing in demand for sensitive and functional skincare, and by holding pricing through prescriptive credibility, margins improve alongside revenue each time it grows.
- As margin improvement is added to revenue growth, earnings rise faster than revenue, and re-measuring the share price against that larger current-year profit steps the multiple down.
- Current data show no signal that earnings will turn lower next year than this year, so there is no basis to declare the present growth a "cycle top."
- The most notable disclosure is the March 2026 corporate value-up plan, which emphasized managerial efficiency and stronger shareholder returns, and a 2025 payout ratio of about 42% is confirmed.
- In May, a fair disclosure of Q1 provisional results (revenue ₩36.2 billion, operating profit ₩8.7 billion) and an investor briefing (IR) followed, and in March there were the regular shareholders' meeting, appointment of an outside director, and filing of the 2025 business report.
- In June, a report of a stake change by a major holder appeared, a periodic filing that notifies a change in held stake rather than a change in the business itself.
- Rather than event-type disclosures such as orders or capital raises, this is a steady disclosure flow that regularly communicates results and shareholder return.
- The strengths are clear.
- An operating margin of 21.8% and double-digit growth are sustained at the same time, the P/E on this year's expected earnings is low at 8.3x versus peers, and a dividend yield of about 4.3% plus a value-up disclosure show a will to return capital.
- The financials are ample too.
- In other words, with growth, profitability, financials, and returns all in place, the price is set cheaply relative to earnings, a stock with a clearly undervalued character.
- Points to weigh together: cosmetics results can swing with brand popularity and channel shifts (domestic, duty-free, exports), and with revenue heavily reliant on the domestic market, it is sensitive to household consumption and competitive intensity.
- In sum, it is a stock that is strong when results keep trending up and export contribution grows, and weaker when domestic demand slows or brand momentum cools; for now, a balanced view is that the strengths stand out over the burdens.
🔎 Valuation vs peers Fairly valued
Compared against cosmetics names similar in actual business, such as dermocosmetics and skincare.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| VT Cosmetics | 6.81x | 1.71x | 25.14% |
| Clio | 14.87x | 0.83x | 5.58% |
| Classys | 24.77x | 5.91x | 23.86% |
A P/E of 10.1x and a P/B of 1.44x are mid-range within the dermocosmetics peer set. It is lower than the high-growth, high-multiple Classys, higher than the low-P/E VT, and different in character from the growth-slowed Clio. With an ROE of 14.2%, Neopharm is upper-tier within the peer set and has one of the highest dividend yields, so premium factors on profitability and returns are clear. That said, the P/E on last year's confirmed earnings (trailing) looks somewhat conservative in a phase where earnings are rising, and on this year's expected earnings (forward) the multiple steps down a notch, easing the burden. Taking peer-set position, profitability, and returns together, we judge it a fairly valued range that is hard to declare either undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩18,920 and the market capitalization is ₩303.2 billion. The price sits above its 20-day moving average (₩17,674) and above its 60-day moving average (₩18,383). 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 57.9, a neutral level. The one-month change is +11.2%, the three-month change is +11.5%, and the position relative to the 52-week high is -14.6%. Relative strength versus the KOSDAQ is 85 (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 86% of all stocks. Over the past three months it outpaced the index by 50.3%. 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 +50.29% / 6M +26.55% / 12M +31.55%
Key metrics vs sector median
Valuation
The P/E of 10.90x is below the sector median (14.79x). The P/B of 1.55x is above the sector median (0.97x).
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)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.143x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 14.2%, above the sector average (4.0%). The operating margin is 21.8%. The debt ratio is 111.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $64.4M | $78.9M | $87.6M | +11.07% ↓ slower |
| Operating profit | $16.8M | $16.3M | $19.1M | +16.72% ↑ faster |
| Net profit | $15.4M | $15.3M | $18.4M | +20.63% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $58.3M | $56.4M | $64.4M | $78.9M | $87.6M |
| Operating profit | $14.9M | $14.2M | $16.8M | $16.3M | $19.1M |
| Net profit | $11.7M | $11.3M | $15.4M | $15.3M | $18.4M |
| Revenue CAGR | 4-yr avg 10.73% | ||||
Revenue rose 11.1% year over year (2023 ₩97.1 billion → 2024 ₩119.0 billion → 2025 ₩132.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 16.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.7%. The two-year revenue CAGR is 16.7%. In the most recent quarter (Q1 2026), revenue was 14.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.0%, is on the high side.
- ROE of 14.2% points to solid profitability.
- Revenue grew 11.1% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-25FilingCorporate value-up plan (voluntary disclosure) - presenting a direction for stronger managerial efficiency, revenue, and shareholder return, with a 2025 payout ratio of about 42% confirmedA factor raising shareholder-return expectations mid term, though the specific target figures (ROE, revenue, etc.) are centered on qualitative description. Source
- 2026-05-08EarningsQ1 2026 provisional operating results fair disclosure - revenue ₩36.2 billion (+14.6%), operating profit ₩8.7 billion (+11.9%)Confirms continued growth short term. Net profit was also +20.8%, with a sound margin flow. Source
- 2026-05-08IRInvestor briefing (IR) held - explaining Q1 results and business statusSecures a channel short term through which the company directly communicates results and strategy. Source
- 2026-06-08FilingLarge-holdings report (simplified) - a report of a stake change by a major holderA short-term supply-demand reference, a periodic filing unrelated to changes in business fundamentals. Source
- 2026-03-16Filing2025 business report filed - annual confirmed results disclosed, including revenue ₩132.2 billion and net profit ₩28.2 billionA reference point mid term for annual fundamentals. The brand portfolio and revenue mix can be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩36.2 billion | ₩36.2 billion (+14.6%) | Confirmed | link |
| Q1 2026 operating profit | ₩8.7 billion | ₩8.7 billion (+11.9%) | Confirmed | link |
| 2025 dividend payout ratio | 42.2% | approx. 42% | Confirmed | link |
| 2026 expected net profit (in-house estimate) | approx. ₩32.5 billion | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-06OwnershipOwnership-change filing
- 2026-05-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-25Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual 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.