Kyongbo Pharmaceutical, founded in 1987, is an active pharmaceutical ingredient (API) specialist whose two roughly equal legs — APIs supplied to other drugmakers (about ₩133.8 billion) and finished drugs used directly by patients (about ₩126.5 billion) — leave it reliant on neither side alone. In March 2026 it made a voluntary disclosure of a corporate value-up plan, in April a supply-contract termination disclosure, and its Q1 preliminary results were revenue ₩66.1 billion, operating profit ₩700 million, and net profit -₩500 million — revenue and operating profit rose but net profit is still in the red. What stands out lately is that with revenue up for four straight years and Q1 operating profit recovering sharply, the P/B of 0.81x makes it cheap relative to asset value, but with an operating margin in the 1% range and interest coverage below 1x, it needs confirmation that the operating-line recovery carries through to a net-profit turnaround.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 10.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 9.1% higher than a year earlier.
- ROE is 0.1% (total-net basis). It is below the sector average.
- Operating margin is 1.3%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Chong Kun Dang Holdings 43.41% (corporate)
Controlling bloc incl. related parties 60.56%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kyongbo Pharmaceutical, founded in 1987, is an active pharmaceutical ingredient (API) specialist.
- Its earnings split into two legs.
- One is APIs — supplying the core ingredients of medicines to other drugmakers (about ₩133.8 billion in 2025); the other is finished drugs used directly by patients (about ₩126.5 billion).
- On the finished-drug side it directly sells prescription drugs such as cardiovascular medicines and inhalation anesthetics, plus over-the-counter drugs, and it is also growing medical devices and an animal-health area covering veterinary medicines and nutritional supplements.
- In other words, its B2B revenue from making ingredients and handing them to other companies and its revenue from directly selling finished products are mixed in roughly equal proportion, so the structure does not depend on either side alone.
- The recent close is ₩5,070 and the market cap is ₩121.2 billion.
- The price sits below its 20-day line (₩5,241) and its 60-day line (₩5,938).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 39.2, a neutral level.
- The price is down 5.2% over one month and 27.5% over three months, and sits 40.7% below its 52-week high.
- Its relative strength versus the KOSPI is 24 (on a 1-99 scale, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 77% of all stocks by strength.
- Over the past three months it has lagged the index by 41.7%.
- Chart readings are best viewed alongside trading volume and the dates on which disclosures occur.
- The most recent full-year revenue was ₩264.1 billion, operating profit ₩3.5 billion, and net profit ₩200 million.
- With an operating margin of 1.3% and ROE (how much the company earns in a year on its equity) of 0.1%, the absolute size of earnings is still thin.
- So the P/E ratio (how many times one year's earnings the price represents) computed on last year's earnings looks very high at 667.11x, but this is only because the denominator, net profit, is from a year pressed nearly to the bottom, inflating the ratio — it is hard to read straight as meaning 'the price is expensive'.
- A stock whose earnings hit a one-year bottom sees its P/E spike temporarily like this.
- On the asset-value yardstick, by contrast, the P/B (how many times book value the price represents) is 0.83x, meaning the price is set below the company's net assets.
- The debt ratio of 119% is not heavy, but interest coverage (how far operating profit covers interest) falls below 1x, so this is a spot where the balance-sheet burden eases naturally only once earnings recover.
- Revenue climbed for four straight years, from ₩170.7 billion in 2021 to ₩264.1 billion in 2025, and the pace of increase (up 10.7% year on year) is if anything accelerating.
- Operating profit, too, turned from a loss in 2021 to a profit and has been settling in.
- The key is the most recent Q1 2026, where revenue rose 9.1% from the same period a year earlier to ₩66.1 billion and operating profit jumped about 488% year on year to ₩700 million.
- With API demand and finished-product sales supporting each other, the pace of the earnings recovery outran revenue.
- For the full year, revenue of about ₩278.1 billion and operating profit of about ₩4.4 billion can be gauged, reflecting Q1 results and the quarterly trend of recent years.
- This is a picture in which operating profit, ₩3.5 billion last year, rises again to around ₩4.4 billion this year, and the core of the growth is that earnings are passing the bottom and entering a recovery phase.
- Recent disclosures are clues to reading the company's direction.
- On March 26, 2026 the company itself put out a corporate value-up plan (voluntary disclosure); as planning material the company presented itself, it is a primary reference for gauging the direction of future results.
- On April 10 there was a single sales and supply contract termination disclosure — how the amount and term of the terminated contract feed into future revenue recognition, and whether it was a one-off or a repeatable transaction, will shape the medium-term read.
- On April 29, Q1 2026 preliminary results (revenue ₩66.1 billion, operating profit ₩700 million, net profit -₩500 million) were disclosed.
- Revenue and operating profit rose but net profit is still in the red, so this is a spot to confirm next quarter whether the operating-line recovery carries through to net profit.
- The strengths are clear.
- Revenue has risen for four straight years with the pace even accelerating, Q1 operating profit recovered sharply, and the stock trades below book value at a P/B of 0.81x.
- On an asset-value basis it is close to undervalued.
- The cautions deserve equal attention.
- With an operating margin in the 1% range, earnings can wobble on even small cost swings, and with Q1 net profit still in the red, whether the operating-line recovery reaches net profit needs confirmation.
- Interest coverage below 1x also means the balance-sheet burden could linger if the earnings recovery is slow.
- In short, in a phase where revenue growth and the operating-profit recovery carry through to a net-profit turnaround, the price that is cheap relative to asset value comes to the fore and the stock is strong; conversely, if the earnings recovery is slow or one-off contract and financing variables overlap, the thin profitability shows up as a weakness.
🔎 Valuation vs peers Overvalued
Peers close in market cap within the pharmaceutical and bio sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kukjeon Pharma | — | 1.22x | -4.46% |
| ISU Abxis | — | 1.22x | -9.33% |
| Corestem-Chemon | — | 1.82x | -48.63% |
Within the pharmaceutical and bio sector, peers close in market cap from public data were viewed first. The current P/E ratio (how many times one year's earnings the price represents) is 667.11x and the P/B (how many times book value the price represents) is 0.83x. That said, smaller-cap stocks are heavily affected by earnings swings and financing disclosures, so no firm conclusion was drawn from last year's confirmed-results metrics alone. 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 | ₩278.1 billion | ₩4.4 billion | — |
| Next quarter | Q2 2026 | ₩68.1 billion | ₩1.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩5,070 and the market capitalization is ₩121.2 billion. The price sits below its 20-day moving average (₩5,241) and below its 60-day moving average (₩5,938). 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 39.2, a neutral level. The one-month change is -5.2%, the three-month change is -27.5%, and the position relative to the 52-week high is -40.7%. Relative strength versus the KOSPI is 24 (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 23% of all stocks. Over the past three months it lagged the index by 41.7%. 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 -41.67% / 6M -44.41% / 12M -58.25%
Key metrics vs sector median
Valuation
The P/E of 667.11x is above the sector median (15.98x). The P/B of 0.83x is below the sector median (1.37x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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.
Profitability & financials
Return on equity (ROE) is 0.1%, below the sector average (3.0%). The operating margin is 1.3%. The debt ratio is 119.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $143.4M | $158.1M | $175.0M | +10.71% ↑ faster |
| Operating profit | $3.7M | $6.9M | $2.3M | -66.34% ↓ slower |
| Net profit | $2.0M | $3.1M | $120,819 | -96.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $113.1M | $130.1M | $143.4M | $158.1M | $175.0M |
| Operating profit | -$4.4M | $923,013 | $3.7M | $6.9M | $2.3M |
| Net profit | -$5.0M | $404,683 | $2.0M | $3.1M | $120,819 |
| Revenue CAGR | 4-yr avg 11.53% | ||||
Revenue rose 10.7% year over year (2023 ₩216.4 billion → 2024 ₩238.6 billion → 2025 ₩264.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 66.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.5%. The two-year revenue CAGR is 10.5%. In the most recent quarter (Q1 2026), revenue was 9.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 10.7% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure): confirm the original text of the company's planPlanning material the company itself put forward. If it contains figures, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-04-10ContractTermination of a single sales and supply contract: confirm the detailed terms in the original textThe contract amount and term are the key to future revenue recognition. Whether it is a one-off or a repeatable transaction shapes the medium-term read. Source
- 2026-04-29EarningsOperating (preliminary) results (fair disclosure): Q1 2026 revenue ₩66.1 billion, operating profit ₩700 million, net profit -₩500 millionRecent confirmed or preliminary results. Check whether it points the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩5,070 | ₩5,070 | Confirmed | link |
| Latest quarterly results | revenue ₩66.1 billion, operating profit ₩0.7 billion | revenue ₩66.1 billion, operating profit ₩0.7 billion | Confirmed | link |
| Annual results | revenue ₩264.1 billion, operating profit ₩3.5 billion | revenue ₩264.1 billion, operating profit ₩3.5 billion | Confirmed | link |
| Original text of the outlook/plan disclosure | : | : | Confirmed | link |
| Original text of the contract disclosure | ㆍapprox. : | ㆍapprox. : | Confirmed | link |
| Original text of the results disclosure | : 2026 1 revenue ₩66.1 billion · operating profit ₩0.7 billion · net profit -₩0.5 billion | : 2026 1 revenue ₩66.1 billion · operating profit ₩0.7 billion · net profit -₩0.5 billion | Confirmed | link |
| Basis of the outlook box | DART | DART | Confirmed | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-10Single supply/sales contract
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-18PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-02-27OwnershipOfficers'/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.