Huons is a pharmaceutical company that earns revenue by steadily selling a range of products centered on prescription drugs dispensed at hospitals and 'wellness' injections for cosmetic and health use, along with exports of eye drops and injectables and contract manufacturing (CMO) of other companies' drugs. On a last-year basis its P/E of about 7x and P/B of 0.83x sit below a diversified pharmaceutical peer set, while an ROE of 11.4% and a dividend yield in the 3% range support both profitability and shareholder returns, and a small-scale merger decision in May-June 2026 may change the basis for comparing consolidated results. What stands out most recently is that, as long as eye-drop and injectable exports and CMO underpin revenue, the below-1 P/B and low P/E work as sources of undervaluation appeal, whereas because Q1 2026 operating profit was temporarily in the red, the normalization of quarterly profit needs to be confirmed in the next results.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.7% lower than a year earlier.
- ROE is 11.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.3%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Huons Global 40.74% (corporate)
Controlling bloc incl. related parties 44.82%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- Huons is a pharmaceutical company that makes and sells drugs for human use and cosmetic and health-related injections.
- The major revenue pillars are prescription drugs dispensed at hospitals (local anesthetics, cardiovascular drugs, ophthalmic injections and the like) and 'wellness' injections such as vitamin shots and cosmetic or weight-related injections.
- On top of this it earns money by exporting eye drops and injectables overseas and by contract manufacturing (CMO) other companies' drugs.
- In short, it is not a company betting everything on a single new drug but one built to accumulate revenue by steadily selling a variety of products, so its results are driven by its product portfolio and production and export volumes rather than the economic cycle.
- The latest close is ₩26,500 and market capitalization is ₩317.5 billion.
- The price sits below its 20-day line (₩27,115) and below its 60-day line (₩28,902).
- Trading below both the short- and mid-term moving averages, the trend is on the softer side.
- The RSI (a supplementary gauge that scores upward versus downward strength over the past 14 days on a 0-100 scale) is 45.6, a neutral level.
- The one-month change is -7.3%, the three-month change is +7.1%, and the position versus the 52-week high is -30.6%.
- Relative strength against the KOSDAQ is 80 (1-99, converting return versus the index over the past year with more recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 20% of all stocks by strength.
- Over the past three months it led the index by 44.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed last-year (2025) basis the P/E (how many times one year's net profit the price is) is 7.44x and the P/B (how many times net asset value the price is) is 0.85x.
- ROE (how much is earned in a year on equity) is 11.4% and the operating margin is 7.3%, solid profitability even among pharmaceutical firms, and the dividend yield is high at around 3% (₩920 per share, payout ratio 25%).
- A P/B below 1 means the price is set even cheaper than the company's net asset value.
- The forward P/E reflecting this year's expected profit is below the median of the diversified pharmaceutical peer set.
- In other words, whether trailing or forward, the signal that the price is cheap relative to profit and assets appears consistently.
- The debt ratio (debt to equity) is 181.9%, but with a current ratio of 1.70x and interest coverage of 5.88x, short-term repayment and interest burden are comfortably manageable, so financial health is assessed as 'stable'.
- Revenue rose each year, from ₩552.0 billion in 2023 to ₩590.2 billion in 2024 and ₩620.8 billion in 2025, steadily expanding the top line; measured from ₩436.9 billion in 2021, it has grown at roughly 9% a year over five years.
- Last year's revenue growth of +5.2% is somewhat slower in pace, but the direction is still up.
- Profit wobbled once before reviving.
- Operating profit dipped to ₩39.7 billion in 2024 (-29%) before recovering to ₩45.6 billion in 2025 (+14.9%), and net profit rebounded sharply from ₩29.5 billion in 2024 to ₩42.7 billion in 2025 (+44.8%).
- The forward P/E reflecting this year's expected profit coming in below the peer set means the market accepts, as is, the stable earnings power built by steady revenue accumulation across several product lines and underpinned by eye-drop and injectable exports and CMO.
- That said, in Q1 2026 revenue was ₩141.9 billion, -2.7% year over year, and operating profit was -₩0.6 billion, a temporary soft patch.
- Since quarterly results can be uneven due to drug-price cuts, R&D spending and one-off costs, whether this single soft quarter hardens into a full-year trend is best confirmed in the next quarter's results.
- The recent disclosures center on a small-scale merger decision spanning May-June 2026.
- The company filed a material-event report (company merger decision) on 2026-05-18, set an extraordinary general meeting and record date, and in the process trading in its shares was briefly suspended before being lifted as 'not a backdoor listing'.
- On May 22 there was a voluntary disclosure that a board resolution approving the small-scale merger substituted for a general meeting, and thereafter, across May 27-28 and June 4, the detailed schedule and terms of the same merger were tidied up through amendments.
- A small-scale merger is a form in which, because the counterparty is small relative to the company, it can be handled by the board without a special resolution of the general meeting; the burden from a control change is small, but the key is that the basis for comparing consolidated results and financials may change after the merger.
- Details such as the counterparty, ratio and dates are items to verify directly in the official source documents, so the text does not assert them.
- Huons is a stock where the impression of 'looking cheap' is confirmed consistently across several metrics.
- On a last-year basis a P/E of about 7x and P/B of 0.83x are distinctly lower than the diversified pharmaceutical peer set (JW Pharmaceutical at 9.6x, Yuhan and Hanmi Pharm in the 29x range), and the forward P/E reflecting this year's expected profit is also below the peer median, so undervaluation signals appear on both the trailing and forward sides.
- On top of this, an ROE of 11.4% and a dividend yield in the 3% range support both profitability and shareholder returns, and revenue grows every year with a steady top line.
- The strong case is clear.
- As long as eye-drop and injectable exports and CMO underpin revenue and profit holds its normal track, the below-1 P/B and low P/E work as appeal as they are.
- Two points to watch.
- First, since Q1 2026 operating profit was temporarily in the red, the recovery of quarterly profit needs to be confirmed in the next results.
- Second, the ongoing small-scale merger may change consolidated results and the basis for comparison, so it helps to watch the continuity of the numbers before and after the merger together.
- In sum, the structure is one where the undervaluation appeal comes through most clearly when quarterly profit is confirmed to be normalizing back to last year's level.
🔎 Valuation vs peers Inconclusive
Rather than companies concentrated on a single cosmetic business of botulinum toxin and fillers, diversified pharmaceutical firms that make a broad mix of prescription and over-the-counter drugs were taken as the peer set; JW Pharmaceutical, close in scale and profitability, the diversified-pharma bellwethers Yuhan and Hanmi Pharm, and Dong-A ST for top-line comparison were viewed together.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JW Pharmaceutical | 8.97x | 1.49x | 16.65% |
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
| Hanmi Pharmaceutical | 30.30x | 4.11x | 13.57% |
| Dong-A ST | — | 0.53x | -4.45% |
(a) Against the diversified pharmaceutical peer set, Huons's last-year P/E and P/B are among the lowest, lower even than the similarly sized JW Pharmaceutical (P/E 10.2x), placing it in a discount zone by position. (b) The grounds for the discount are its KOSDAQ, small-to-mid-cap status, a business character centered on the product portfolio rather than new-drug momentum, and the volatility of profit. (c) The limits are clear. The confirmed last-year P/E of 8.3x is based on 2025 profit (₩42.7 billion), but Q1 2026 net profit of ₩0.19 billion is effectively an inflection point. The approximation of this year's net profit estimated from DART seasonality is around ₩0.6 billion, so converting to forward makes the P/E soar to an unrealistic level. In other words, 'it looks cheap on a last-year basis, but that assessment holds only if this year's profit recovers', so rather than asserting one way or the other, it is left as inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩150.1 billion | — | approx. ₩0.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩26,500 and the market capitalization is ₩317.5 billion. The price sits below its 20-day moving average (₩27,115) and below its 60-day moving average (₩28,902). 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 45.6, a neutral level. The one-month change is -7.3%, the three-month change is +7.1%, and the position relative to the 52-week high is -30.6%. Relative strength versus the KOSDAQ is 80 (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 80% of all stocks. Over the past three months it outpaced the index by 44.1%. 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 +44.06% / 6M +17.52% / 12M -8.38%
Key metrics vs sector median
Valuation
The P/E of 7.44x is below the sector median (15.98x). The P/B of 0.85x 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.
Profitability & financials
Return on equity (ROE) is 11.4%, above the sector average (3.0%). The operating margin is 7.3%. The debt ratio is 181.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $365.9M | $391.2M | $411.4M | +5.17% ↓ slower |
| Operating profit | $37.1M | $26.3M | $30.2M | +14.88% ↑ faster |
| Net profit | $33.5M | $19.5M | $28.3M | +44.84% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $289.6M | $326.3M | $365.9M | $391.2M | $411.4M |
| Operating profit | $30.0M | $27.1M | $37.1M | $26.3M | $30.2M |
| Net profit | $20.4M | $14.9M | $33.5M | $19.5M | $28.3M |
| Revenue CAGR | 4-yr avg 9.18% | ||||
Revenue rose 5.2% year over year (2023 ₩552.0 billion → 2024 ₩590.2 billion → 2025 ₩620.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 14.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.2%. The two-year revenue CAGR is 6.0%. In the most recent quarter (Q1 2026), revenue was 2.7% 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 dividend yield, at 3.5%, is on the high side.
- ROE of 11.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 5.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-06-04FilingAmendment to material-event report (company merger decision) - correction of small-scale merger details and reconvening of extraordinary general meeting and resetting of the shareholder-register record dateA signal that the merger schedule and terms are being tidied into a confirmed stage. There is a possibility of changes in consolidated results and the basis for financial comparison, so the continuity of results before and after merger completion needs checking. Source
- 2026-05-22FilingOther management matter (voluntary disclosure) - reporting the result of the board resolution (substituting for the general meeting) approving the small-scale mergerA small-scale merger is a structure handled by the board without a special resolution of the general meeting. The counterparty is small so the burden from a control change is small, but the change in consolidation scope after the merger affects the basis for comparison. Source
- 2026-05-18FilingFirst disclosure of material-event report (company merger decision), resolution to convene an extraordinary general meeting, and trading suspension (checking backdoor-listing status)The disclosure that first announced the merger's pursuit. Trading was suspended the same day and then lifted as 'not a backdoor listing', so backdoor-listing risk was resolved for now. Source
- 2026-05-18UpdateLifting of trading suspension - confirmation of 'not a backdoor listing'The check on backdoor-listing conditions arising from the merger concluded as 'not applicable'. With trading resumed, short-term liquidity uncertainty was resolved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest closing price | ₩26,500 | — | Unverified | link |
| Q1 2026 operating profit (cumulative) | -₩0.7 billion | — | Unverified | link |
| Five-year revenue trend | 2021 ₩436.9 billion → 2025 ₩620.8 billion | — | Unverified | link |
| Fact of small-scale merger pursuit | 2026-05-18 | DART (2026-05-18 / 05-22 / 06-04) | Confirmed | link |
Recent filings
- 2026-06-04Amended filing
- 2026-06-04Material-fact report (amended)
- 2026-06-04Amended filing
- 2026-05-28Amended filing
- 2026-05-28Material-fact report (amended)
- 2026-05-27Material-fact report (amended)
- 2026-05-22Merger decision
- 2026-05-18Disclosure
- 2026-05-18Shareholders' meeting notice
- 2026-05-18Disclosure
- 2026-05-18Material-fact report
- 2026-05-18Disclosure
📖 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.