Chong Kun Dang is a full-line pharmaceutical company whose revenue is mostly prescription drugs that require a doctor's order, selling both its own developed drugs and in-licensed distribution products (the diabetes drugs Januvia and Janumet, the pneumococcal vaccine Prevenar, and others), and since September 2025 it has co-marketed Novo Nordisk's obesity treatment Wegovy in Korea, with that revenue growing quickly (in the tens of billions of won in the first quarter). Results were confirmed on April 29 in preliminary first-quarter figures and on May 15 in the quarterly report, showing revenue and profit up from a year earlier, and on May 14 it filed a domestic Phase 3 trial plan for its hypertension drug candidate CKD-339. The strengths to note are Wegovy as a growth driver and an earnings rebound, along with the undervaluation of a 0.94x P/B and a 12.2x confirmed P/E. The cautions are that ROE of 7.7% and an operating margin of 4.8% make margins thin, that because Wegovy is an in-licensed drug the revenue growth does not all fall through to profit, and that its new drugs are at an early clinical stage.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 6.7% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 11.7% higher than a year earlier.
- ROE is 7.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.8%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Chong Kun Dang Holdings 26.29% (corporate)
Controlling bloc incl. related parties 39.73%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Chong Kun Dang is a full-line pharmaceutical company whose revenue is mostly prescription drugs that require a doctor's order.
- It sells both its own developed drugs and in-licensed distribution products brought in from multinational pharma companies; representative items include the diabetes drugs Januvia and Janumet (in the ₩140 billion-a-year range), the pneumococcal vaccine Prevenar, and gastrointestinal-drug lines.
- Since September 2025 it has begun co-marketing Novo Nordisk's obesity treatment Wegovy in Korea, and that revenue is growing quickly (expanding from around ₩9 billion in the fourth quarter of 2025 to the tens of billions of won in the first quarter of 2026).
- The gap left when the co-marketing of the gastrointestinal drug K-CAB ended is being filled by other in-licensed drugs such as Fexuclue and Godex and by Wegovy.
- For new-drug R&D, in October 2025 it shifted its core pipeline (the c-MET-targeting antibody-drug conjugate CKD-703, the cholesterol-related CETP inhibitor CKD-508, and others) to its 100% subsidiary Achella to nurture separately.
- In sum, the actual skeleton of the business is a steady prescription- and in-licensed-drug operation plus a growing Wegovy plus early-stage new-drug development.
- The latest closing price is ₩69,800 and the market cap is ₩963.4 billion.
- The price sits above its 20-day line (₩69,130) and below its 60-day line (₩77,663).
- With short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supplementary gauge that weighs buying versus selling strength over the past 14 days on a 0-100 scale) is 46.2, a neutral level.
- The one-month change is -1.0%, the three-month change is -19.0%, and the position versus the 52-week high is -28.6%.
- Relative strength against the KOSPI is 15 (on a 1-99 scale, converted from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 86% of all stocks for strength.
- Over the past three months it has lagged the index by 36.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed 2025 results, the P/E ratio (how many times one year's earnings the price is) is 12.43x and the P/B ratio (how many times the company's net assets the price is) is 0.96x.
- A P/B below 1x means the market cap is smaller than book shareholders' equity, a low spot in terms of asset value.
- The P/S ratio (how many times revenue the price is) is 0.57x.
- ROE (how much is earned per year on equity) is 7.7%, around the pharma-industry average, and with an operating margin of 4.8% and a net margin of 4.6%, margins are not thick given a business structure heavy on in-licensed drugs.
- Financially, though, it is solid: with a current ratio of 212% and an interest coverage ratio of 9.5x, repayment and interest burdens are low, and a debt ratio (debt versus equity) of 179% is not excessive given a pharma business with large operating liabilities such as accounts payable.
- The dividend is ₩500 per share (a 0.7% yield, payout ratio about 8.5%).
- The confirmed P/E of 12.2x is based on 2025's low net profit, which excludes the one-off 2023 technology-export gain, so on this year's rising earnings the actual burden is lighter than that.
- Revenue has risen steadily over five years (from ₩1.34 trillion in 2021 to ₩1.69 trillion in 2025), growing at a 5.9% annual average, and it rose 6.7% in 2025.
- Net profit, by contrast, jumped sharply to ₩212.5 billion in 2023, then fell to ₩109.1 billion in 2024 and ₩77.5 billion in 2025; 2023 was unusually large because that year's technology-export upfront payment (about $80 million) for a new drug (CKD-510) licensed to Novartis was booked all at once, and the subsequent decline is a normalization back to the base business as that one-off gain fell away.
- In other words, it is not that the base business worsened, but that the special gain vanished.
- In fact, first-quarter 2026 revenue rose 11.7% year on year, with operating profit up 13.1% and net profit up 6.2%, turning earnings back onto an upward path.
- With Wegovy revenue reflected in full through the year and the K-CAB gap filled, this year's earnings are likely to recover beyond the 2025 trough.
- Reflecting this recovery trajectory, valuation on this year's earnings falls below the confirmed-results basis (a 12.2x P/E); on last year's numbers alone it looks ordinary, but reflecting rising earnings it reads as a low multiple versus peers.
- Recent disclosures fall into two branches: results and pipeline.
- On results, first-quarter operating (preliminary) figures were disclosed first on April 29 and confirmed in the quarterly report on May 15, confirming that revenue and profit rose from a year earlier.
- On the pipeline, on May 14 it filed a domestic Phase 3 clinical trial plan (IND) with the Ministry of Food and Drug Safety for its hypertension drug candidate CKD-339.
- Phase 3 is the stage just before marketing approval, so success could lead to new-product revenue, but until results are confirmed it remains a cost-incurring work in progress.
- In addition, at the March annual shareholders' meeting the financial statements and dividend (₩500 per share) were confirmed, and the pipeline realignment via the new-drug subsidiary Achella (October 2025) can be seen as a structural change to manage R&D outcomes and risk separately from the parent.
- Points to watch: the financial structure is stable (sound liquidity and interest burden), and with Wegovy as a growth driver pushing revenue up, earnings began to rebound from the first quarter of 2026.
- It trades below net assets at a 0.94x P/B, and even the confirmed 12.2x P/E is based on trough earnings that exclude the one-off gain, so the burden eases when viewed on this year's recovering earnings.
- Points of caution: with ROE of 7.7% and an operating margin of 4.8%, profitability itself is not high, so the below-net-asset price partly reflects a thin margin structure, and because Wegovy is an in-licensed drug the revenue growth does not all fall through to profit.
- The new drugs (CKD-703, CKD-508, CKD-339 and others) are at an early clinical stage, so it will take time for results to show up in earnings.
- In sum, the growth driver, earnings recovery and low P/B are strengths, while the thickness of margins, the timing of new-drug visibility, and the quarterly durability of the recovery are the parts to confirm.
🔎 Valuation vs peers Fairly valued
Compared by selecting companies whose business mix and scale overlap among full-line pharmaceutical firms centered on prescription and in-licensed drugs (large caps focused on biosimilars and CDMO were excluded as their business character differs).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
| Hanmi Pharmaceutical | 30.30x | 4.11x | 13.57% |
| Daewoong Pharmaceutical | 7.79x | 1.52x | 19.47% |
| Boryung | 10.77x | 0.82x | 7.61% |
Within the peer set, Chong Kun Dang's 0.94x P/B is far below Yuhan (2.36) and Hanmi Pharmaceutical (4.47) and similar to Boryung (0.85). On confirmed-results P/E of 12.2x alone it looks higher than Daewoong Pharmaceutical (7.4) and Boryung (11.1), but that figure uses 2025's low net profit, whose denominator lost the 2023 Novartis technology-export payment. As Wegovy revenue expands and the K-CAB gap is recovered, if this year's earnings clear the trough, valuation on an earnings basis falls below the confirmed-results basis. That said, since ROE and margins are not thick versus top-tier peers, rather than strongly declaring it undervalued versus net assets, this reads as a structure where the appeal of a low P/B and a falling earnings multiple comes to the fore as the earnings recovery is confirmed.
Price history Close · MA20 · MA60
The latest close is ₩69,800 and the market capitalization is ₩963.4 billion. The price sits above its 20-day moving average (₩69,130) and below its 60-day moving average (₩77,663). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.2, a neutral level. The one-month change is -1.0%, the three-month change is -19.0%, and the position relative to the 52-week high is -28.6%. Relative strength versus the KOSPI is 15 (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 14% of all stocks. Over the past three months it lagged the index by 36.2%. 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 -36.20% / 6M -48.06% / 12M -65.87%
Key metrics vs sector median
Valuation
The P/E of 12.43x is below the sector median (15.98x). The P/B of 0.96x 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 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.7%, above the sector average (3.0%). The operating margin is 4.8%. The debt ratio is 179.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.1B | $1.1B | +6.68% ↑ faster |
| Operating profit | $163.4M | $65.9M | $53.4M | -19.00% ↑ faster |
| Net profit | $140.9M | $72.3M | $51.4M | -28.94% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $890.5M | $986.4M | $1.1B | $1.1B | $1.1B |
| Operating profit | $62.8M | $72.8M | $163.4M | $65.9M | $53.4M |
| Net profit | $28.3M | $53.7M | $140.9M | $72.3M | $51.4M |
| Revenue CAGR | 4-yr avg 5.94% | ||||
Revenue rose 6.7% year over year (2023 ₩1.7 trillion → 2024 ₩1.6 trillion → 2025 ₩1.7 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 19.0% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.9%. The two-year revenue CAGR is 0.7%. In the most recent quarter (Q1 2026), revenue was 11.7% higher 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
- 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
- 2026-05-15EarningsFiled the first-quarter 2026 quarterly report — revenue of ₩447.8 billion and operating profit of ₩14.1 billion (consolidated), up from a year earlier.Short term: confirms the base business's revenue and profit rose again, a recovery signal. Medium term: whether this recovery carries into the second quarter and beyond is the reference point to watch. Source
- 2026-05-14FilingApplied for Phase 3 clinical trial plan (IND) approval with the Ministry of Food and Drug Safety (MFDS) for the hypertension drug candidate CKD-339.Short term: material on pipeline progress. Medium term: Phase 3 is the stage just before approval, so success could lead to new-product revenue, but until results it remains a cost-incurring work in progress. Source
- 2026-04-29EarningsFirst-quarter 2026 operating (preliminary) results disclosed — pre-announced revenue and profit growth ahead of the quarterly report.Short term: an official document that signaled the recovery flow before confirmed results. Medium term: the preliminary figures matched the confirmed figures (May 15), raising credibility. Source
- 2026-03-26DividendAt the annual shareholders' meeting, agenda items including the financial statements and dividend (₩500 per share, payout ratio about 8.5%) were confirmed.Short term: confirms the scale of shareholder returns. Medium term: a basis for checking whether the dividend stance was maintained even in a year of lower earnings. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit (consolidated) | ₩14.1 billion | ₩14.1 billion | Confirmed | link |
| 2025 full-year revenue (consolidated) | 1 ₩692.4 billion | 1 ₩692.4 billion | Confirmed | link |
| Fact of the CKD-339 Phase 3 IND application | 2026-05-14 approx. 3 IND | — | Confirmed | link |
| 2026 estimated net profit | approx. ₩92.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-21OwnershipOwnership-change filing
- 2026-04-07OwnershipOwnership-change filing
- 2026-04-02OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-23OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-23OwnershipLargest-shareholder ownership change 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.