Founded in 1998, Hitech Pharm specializes in active pharmaceutical ingredients (APIs) for injectable antibiotics. Its mainstays are the raw materials for the carbapenem antibiotics imipenem and ertapenem, a class whose strong antibacterial activity commands higher pricing, and virtually all of its revenue comes from exports (in 2025, 87.4% to Europe and 12.6% to Asia and elsewhere, for an export share of 99.95%). In February 2026 it approved a cash and in-kind dividend, and its May first-quarter report showed revenue of ₩14.1 billion, an operating loss of ₩1.1 billion and a net loss of ₩0.3 billion, confirming a temporary loss. What stands out lately is that its high-value products deliver profitability with an operating margin around 18%, its debt burden is light, and on last year's profitable results its P/E ratio of 11.78x and P/B of 1.03x are cheap versus peers; however, because almost all revenue is exports, quarterly results swing with exchange rates and the timing of overseas orders and shipments, so it is worth confirming whether export orders and margins return to a normal track.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 9.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.4% lower than a year earlier.
- ROE is 8.8% (total-net basis). It is above the sector average.
- Operating margin is 18.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder ACS Dobfar S.p.A. 39.57% (individual)
Controlling bloc incl. related parties 45.17%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Founded in 1998, Hitech Pharm specializes in APIs (active pharmaceutical ingredients, the core raw materials used to make finished drugs) for injectable antibiotics.
- Its mainstays are the raw materials for the carbapenem antibiotics imipenem and ertapenem; this class has strong antibacterial activity, so it is priced higher than ordinary antibiotic ingredients.
- Virtually all revenue comes from exports.
- As of 2025, Europe accounted for 87.4% and Asia and elsewhere for 12.6%, for an export share reaching 99.95%, so supplying ingredients to overseas pharmaceutical firms is the heart of the business.
- Because the market capitalization is not large, it is worth watching not only the results but also how each disclosure, such as dividends or changes in share count, affects the metrics.
- The latest close is ₩12,270 and market capitalization is ₩130.5 billion.
- The price sits below the 20-day line (₩13,114) and below the 60-day line (₩15,696).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that measures upward versus downward force over the last 14 days on a 0-100 scale) is 32.6, a neutral level.
- The one-month change is -14.2%, the three-month change is -37.6%, and the position versus the 52-week high is -50.9%.
- Relative strength against the KOSDAQ is 74 (on a 1-99 scale, computed from returns versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That puts it in roughly the top 25% of all stocks by strength.
- Over the past three months it lagged the index by 17.6%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On last year's annual basis, revenue was ₩70.2 billion, operating profit ₩12.9 billion and net profit ₩11.5 billion.
- With an operating margin of 18.3% and a net margin of 16.4%, it shows profitability underpinned by unit pricing, and ROE (how much is earned on equity in a year) of 8.8% runs above the sector average.
- The finances are light on debt and rich in cash, with a debt ratio of 110.0%, a current ratio (assets readily convertible to cash versus debt due within a year) of 567%, and an interest coverage ratio (how many times operating profit covers interest) of 71.4x.
- On valuation, the P/E ratio (how many times a year's earnings the price is) of 11.37x and P/B of 1.00x are both below the sector median, so the diagnosis classifies it as undervalued.
- Because last year's results were already profitable, these figures can be taken as they are, and they signal that the price is cheap both against earnings and against assets.
- Revenue was ₩76.8 billion in 2023, ₩77.5 billion in 2024 and ₩70.2 billion in 2025, down 9.5% last year, and operating profit also fell 17.4% from ₩15.6 billion to ₩12.9 billion.
- Over a two-year span, however, operating and net profit trace paths of 12.9% and 19.2% annual growth respectively, so last year's decline partly reflects a pullback after the large prior improvement (operating profit +54% in 2024).
- In the first quarter of 2026, revenue was ₩14.1 billion with an operating loss of ₩1.1 billion and a net loss of ₩0.3 billion, a temporary loss.
- Given the nature of an ingredient exporter, quarterly results can swing sharply with shipment timing, exchange rates and order schedules, so rather than judging the annual direction from a single quarter, the key is to confirm whether the core margin returns to a normal track in later quarters.
- Whether it steadily holds its high-value carbapenem antibiotic ingredients and its Europe-centered customer base is the key to recovery.
- On February 5, 2026, a cash and in-kind dividend was approved, and on December 16, 2025, the record date (register closing) for the dividend was set.
- These relate to cash returns, so it is worth looking together at whether earnings capacity and cash flow can support the dividend.
- On May 15, 2026, the first-quarter 2026 report was released, and a temporary loss was confirmed with revenue of ₩14.1 billion, an operating loss of ₩1.1 billion and a net loss of ₩0.3 billion.
- It is worth checking, alongside later disclosures, whether this loss stems from a one-off factor or points the same way as the annual trend.
- The strengths are clear.
- As a high-value product, its carbapenem antibiotic ingredients deliver profitability with an operating margin around 18%, and ROE also runs above the sector average.
- The debt burden is light and liquidity and interest coverage are ample, so the finances are stable, and on last year's profitable results the P/E ratio of 11.78x and P/B of 1.03x sit in a cheap zone versus peers, reading as undervalued.
- The price has also fallen after a short sharp drop to near a depressed level.
- The point to watch is the core business itself.
- Because almost all revenue is exports, quarterly results swing with exchange rates and the timing of overseas orders and shipments, and indeed a temporary loss occurred in the first quarter of 2026.
- In short, if export orders and margins return to a normal track, the strengths of undervaluation and stable finances can come to the fore; conversely, if loss-making quarters continue, the timing of recovery could be pushed out.
🔎 Valuation vs peers Undervalued
Companies with adjacent market capitalization within pharmaceuticals and bio.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
| Prestige Biologics | — | 1.05x | -20.32% |
| GC Wellbeing | 13.69x | 1.22x | 8.88% |
Within pharmaceuticals and bio, we first looked at a public-data peer set with nearby market capitalization. The current P/E ratio (how many times a year's earnings the price is) is 11.37x and P/B is 1.00x. That said, for smaller-cap names, earnings swings and financing disclosures carry a lot of weight, so we did not draw firm conclusions from metrics based solely on last year's confirmed results. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩66.2 billion | — | — |
| Next quarter | Q2 2026 | ₩19.5 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩12,270 and the market capitalization is ₩130.5 billion. The price sits below its 20-day moving average (₩13,114) and below its 60-day moving average (₩15,696). 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 32.6, a neutral level. The one-month change is -14.2%, the three-month change is -37.6%, and the position relative to the 52-week high is -50.9%. Relative strength versus the KOSDAQ is 74 (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 75% of all stocks. Over the past three months it lagged the index by 17.6%. 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 -17.64% / 6M +24.67% / 12M -8.51%
Key metrics vs sector median
Valuation
The P/E of 11.37x is below the sector median (15.98x). The P/B of 1.00x is below the sector median (1.37x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 11.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.8%, above the sector average (3.0%). The operating margin is 18.3%. The debt ratio is 110.0%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $50.9M | $51.4M | $46.5M | -9.46% ↓ slower |
| Operating profit | $6.7M | $10.3M | $8.5M | -17.37% ↓ slower |
| Net profit | $5.4M | $9.1M | $7.6M | -16.30% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $48.6M | $68.2M | $50.9M | $51.4M | $46.5M |
| Operating profit | -$273,079 | $3.3M | $6.7M | $10.3M | $8.5M |
| Net profit | -$812,164 | $3.9M | $5.4M | $9.1M | $7.6M |
| Revenue CAGR | 4-yr avg -1.08% | ||||
Revenue fell 9.5% year over year (2023 ₩76.8 billion → 2024 ₩77.5 billion → 2025 ₩70.2 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 17.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.1%. The two-year revenue CAGR is -4.4%. In the most recent quarter (Q1 2026), revenue was 7.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 9.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-02-05UpdateCash and in-kind dividend approved: check the return termsA disclosure related to cash returns or changes in share count. Confirm whether earnings capacity and cash flow provide support. Source
- 2025-12-16UpdateRecord date (register closing) set for cash and in-kind dividend: check the return termsA disclosure related to cash returns or changes in share count. Confirm whether earnings capacity and cash flow provide support. Source
- 2026-05-15EarningsQuarterly report (Mar 2026): Q1 2026 revenue ₩14.1 billion, operating loss ₩1.1 billion, net loss ₩0.3 billionRecent confirmed or preliminary results. Check whether they point the same way as the annual trend and whether one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩12,270 | ₩12,270 | Confirmed | link |
| Latest quarterly results | revenue ₩14.1 billion, operating profit -₩1.1 billion | revenue ₩14.1 billion, operating profit -₩1.1 billion | Confirmed | link |
| Annual results | revenue ₩70.2 billion, operating profit ₩12.9 billion | revenue ₩70.2 billion, operating profit ₩12.9 billion | Confirmed | link |
| Shareholder-return disclosure original text | ㆍ: | ㆍ: | Confirmed | link |
| Shareholder-return disclosure original text | ㆍ: | ㆍ: | Confirmed | link |
| Results disclosure original text | (2026.03): 2026 1 revenue ₩14.1 billion · operating profit -₩1.1 billion · net profit -₩0.3 billion | (2026.03): 2026 1 revenue ₩14.1 billion · operating profit -₩1.1 billion · net profit -₩0.3 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-27Disclosure
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 2026-03-30OwnershipOwnership-change filing
- 2026-03-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-23Amended filing
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual 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.