HK inno.N is a pharmaceutical company that makes prescription drugs, with its self-developed gastroesophageal reflux disease treatment "K-CAB" as the axis of revenue, supported alongside by hospital-essential medicines such as vaccines, IV fluids and antibiotics. In April 2026 K-CAB topped domestic outpatient prescriptions with ₩20.8 billion in prescriptions, and in May the company simultaneously advanced demand coverage and pipeline expansion through a ₩97.0 billion new production-facility investment at its Osong plant and U.S. clinical approval for an atopic dermatitis candidate. The notable point right now is that its top-selling domestic prescription drug is lifting profit margins and the shares trade below net assets at a P/B of 0.88x, while the approval outcome and timing of the U.S. process — for which its partner has filed for approval — and prescription competition with rival P-CAB drugs are the variables that will decide the next stretch.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 82.1%).
- Revenue rose 18.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.6% higher than a year earlier.
- ROE is 5.7% (total-net basis). It is above the sector average.
- Operating margin is 10.4%.
- 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 Kolmar Korea 43.01% (corporate)
Controlling bloc incl. related parties 43.01%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- HK inno.N is a pharmaceutical company that makes prescription drugs.
- The axis of revenue is its self-developed gastroesophageal reflux disease treatment "K-CAB" (generic name tegoprazan).
- K-CAB is a P-CAB-class new drug that suppresses stomach acid faster than the existing class (PPIs), and in April 2026 it recorded ₩20.8 billion in domestic outpatient prescriptions to top all medicines by prescriptions.
- Beyond K-CAB, the company also runs a business in hospital-essential medicines — vaccines, IV fluids (drips) and nutritional fluids, and antibiotics.
- In short, it is a structure where a single blockbuster new drug and steadily selling hospital-essential medicines together support revenue.
- The latest close is ₩39,250 and market capitalization is ₩1.1 trillion.
- The price sits below its 20-day line (₩40,720) and below its 60-day line (₩45,662).
- Trading below both the short- and mid-term moving averages, the trend looks depressed.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 41.9, a neutral level.
- The one-month change is -5.3%, the three-month change is -16.6%, and the position versus the 52-week high is -31.9%.
- Relative strength against the KOSDAQ is 67 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 33% of all stocks by strength.
- Over the past three months it outpaced the index by 10.1%.
- Chart reading is best done alongside trading volume and the dates disclosures occur.
- Valuation is not heavy relative to earnings.
- The P/E ratio (how many times one year's earnings the price represents) is 14.69x, and the P/B (how many times book net assets the price represents) is 0.84x, trading even below net assets.
- That P/E, however, is based on last year's confirmed earnings, so in a phase where this year's profit is surging it creates an illusion of looking more expensive than it is.
- Profitability shows an operating margin of 10.4% and an ROE (how much it earns in a year on equity) of 5.7%, still mid-range.
- On finances, the debt ratio (debt relative to equity) is 157.9%, not low, and the current ratio (assets readily convertible to cash relative to debt due within a year) is 82.1%, so short-term liquidity is not exactly ample.
- Still, with an interest coverage ratio of 5.5x, operating profit comfortably covers interest.
- Cash generation is sound: the FCF yield (the ratio of cash actually generated to market cap) is 6.5%, confirming appeal on a cash basis as well as on earnings alone.
- EV/EBIT (enterprise value divided by operating profit, an extension of the P/E that reflects debt) is 14.4x, and EV/Sales (enterprise value divided by revenue) is 1.5x.
- Net debt (total borrowings minus cash) is about ₩430.9 billion, so even accounting for debt the valuation burden does not rise much.
- Growth is in fact accelerating.
- 2025 revenue was ₩1.0631 trillion, up 18.5% year over year, faster than the prior year's growth rate (8.2%).
- Operating profit rose 25.7% and net profit 22.9%.
- Net profit has trended steadily upward each year over five years: ₩24.7 billion → ₩38.1 billion → ₩47.2 billion → ₩61.6 billion → ₩75.7 billion.
- The first quarter of 2026 is especially striking.
- Revenue grew only 4.6%, but operating profit surged 30.8% and net profit 48.9%.
- That profit grew far faster than revenue means the margin structure improved — the effect of a higher share of high-margin, self-developed new drugs like K-CAB.
- If this earnings-improvement trajectory continues through the rest of this year, this year's net profit is likely to rise substantially over last year.
- In that case, the P/E on this year's expected earnings falls below 12x, making the current price look cheap relative to earnings.
- Recent disclosures center on growth investment and the new-drug pipeline.
- In May the company decided on a new production-facility investment of ₩97.0 billion at its Osong plant (through January 2028).
- With K-CAB demand rising and existing-line utilization reaching its limit, this is a move to add capacity — a sign that demand is firm.
- Also in May it received U.S. clinical approval for an atopic dermatitis treatment candidate, broadening its new-drug pipeline.
- In April it disclosed preliminary results and a dividend (₩410 per share) and held an IR.
- Overall, "preparing to make more of the well-selling K-CAB" and "securing the next growth driver" are proceeding in parallel.
- The core is K-CAB.
- A growth drug that has risen to the top of domestic outpatient prescriptions is lifting profit margins, and a large option — U.S. entry — remains.
- The P/E on last year's confirmed earnings is 15x, which looks ordinary, but with profit rising fast this year, it is lower on this year's basis.
- The P/B is also 0.88x, trading below net assets.
- The strengthening conditions are continued growth in K-CAB's domestic prescriptions and a smooth U.S. approval and launch.
- In the U.S., the partner is at the stage of having filed for approval, and once the outcome and timing are confirmed it will have a large impact on both earnings and valuation.
- The cautionary conditions are if that U.S. process is delayed or falls through, or if prescription competition with rival P-CAB drugs intensifies at home.
- With the current ratio not ample and investment ramping up, near-term financial capacity is also worth watching.
- In short, this is a phase where earnings are improving but the share price is depressed, and the direction of the U.S. event is the variable that will decide the next stretch.
🔎 Valuation vs peers Undervalued
Compared against major listed domestic prescription-drug and pharmaceutical makers, weighing both the share of self-developed new-drug revenue and growth.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanmi Pharmaceutical | 30.30x | 4.11x | 13.57% |
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
| Daewoong Pharmaceutical | 7.79x | 1.52x | 19.47% |
| Chong Kun Dang | 12.43x | 0.96x | 7.72% |
The P/E of 15.4x on last year's confirmed earnings is lower than premium new-drug names like Hanmi Pharm and Yuhan and similar to Chong Kun Dang. But this comparison is only half the picture. HK inno.N is in a phase of sharply rising profit (Q1 net profit +48.9%), so a P/E calculated on last year's earnings creates an illusion of looking more expensive than it is. On this year's expected earnings, the P/E falls below 12x, into an attractive range versus peers with far lower growth. The P/B is also 0.88x, trading below net assets. Daewoong Pharmaceutical looks cheaper at a P/E of 7x, but that reflects its high ROE of 19.5%, while HK inno.N's strengths are accelerating growth and U.S. upside as an option. In sum, reflecting the earnings inflection, we judge it to be in undervalued territory, with the outcome of the U.S. process serving as the trigger for a re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩39,250 and the market capitalization is ₩1.1 trillion. The price sits below its 20-day moving average (₩40,720) and below its 60-day moving average (₩45,662). 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 41.9, a neutral level. The one-month change is -5.3%, the three-month change is -16.6%, and the position relative to the 52-week high is -31.9%. Relative strength versus the KOSDAQ is 67 (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 67% of all stocks. Over the past three months it outpaced the index by 10.1%. 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 +10.06% / 6M -7.88% / 12M -10.77%
Key metrics vs sector median
Valuation
The P/E of 14.69x is in line with the sector median (15.98x). The P/B of 0.84x is below the sector median (1.37x).
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, free-cash-flow basis, forward earnings power normalized 1.317x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.7%, above the sector average (3.0%). The operating margin is 10.4%. The debt ratio is 157.8%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $549.4M | $594.6M | $704.6M | +18.50% ↑ faster |
| Operating profit | $43.7M | $58.5M | $73.5M | +25.68% ↓ slower |
| Net profit | $31.3M | $40.8M | $50.2M | +22.93% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $510.2M | $561.1M | $549.4M | $594.6M | $704.6M |
| Operating profit | $33.4M | $34.8M | $43.7M | $58.5M | $73.5M |
| Net profit | $16.4M | $25.3M | $31.3M | $40.8M | $50.2M |
| Revenue CAGR | 4-yr avg 8.41% | ||||
Revenue rose 18.5% year over year (2023 ₩828.9 billion → 2024 ₩897.1 billion → 2025 ₩1.1 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 25.7% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.4%. The two-year revenue CAGR is 13.2%. In the most recent quarter (Q1 2026), revenue was 4.6% 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.
- Revenue grew 18.5% 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
- 2026-05-21FilingDecided on a new investment of about ₩97.0 billion in solid-dosage (tablets, etc.) production facilities at the Osong plant. Investment period May 2026 to January 2028. Aimed at expanding K-CAB domestic prescriptions and supporting global entry, as existing-line utilization reached its limit.Medium-term expansion of K-CAB supply capacity. A sign of firm demand, though cash burden may rise during the investment-execution period. Source
- 2026-05-13FilingThe U.S. Food and Drug Administration (FDA) approved the Phase 1b clinical plan for an atopic dermatitis treatment candidate (IN-115314) for mild-to-moderate cases. Expansion of the new-drug pipeline beyond K-CAB.Diversification of long-term growth drivers. As an early clinical stage, the near-term earnings impact is limited. Source
- 2026-04-28EarningsFair-disclosure of preliminary operating results. Confirms a margin-improvement trend, with profit rising faster than revenue.Confirms the profit-improvement trend. Evidence that the margin structure is getting better. Source
- 2026-04-24DividendDecided on a cash and in-kind dividend (₩410 per share). A payout ratio of about 15% returns part of profit to shareholders.A dividend yield of about 1%. Pursues growth investment and shareholder returns in parallel. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-21Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-04-28Disclosure
- 2026-04-28Disclosure
- 2026-04-28EarningsFair-disclosure notice
- 2026-04-24DividendCash/stock dividend decision (amended)
- 2026-04-22OwnershipOwnership-change filing
- 2026-04-22EarningsEarnings disclosure
- 2026-04-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-07OwnershipOfficers'/major-shareholders' holdings 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.