Jeil Pharmaceutical is a drugmaker that makes and sells prescription drugs dispensed in hospitals and clinics, with two products, the cholesterol drug Lipitor and the neuropathic-pain drug Lyrica, making up roughly a third of total revenue; it is recently reshaping its makeup by trimming low-margin in-licensed products and raising the share of its own products, and it also holds the listed subsidiary Onconic Therapeutics, which owns the new drug Zaqbo. In February 2026 it confirmed annual results that swung from loss to profit, though Q1 operating profit plunged 92.6%, so quarterly earnings are not yet even, and Zaqbo is under regulatory review following Phase 3 trials in China and India. The point to note is that, because the stake value in subsidiary Onconic is large enough to rival the parent's own market cap, splitting the view into core-business value and subsidiary stake value makes the appeal of a 0.68x P/B and an 11.1% ROE stand out; but revenue has shrunk for three straight years and whether the core-business quarterly profit settles needs to be confirmed as well.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 19.5% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 20.1% lower than a year earlier.
- ROE is 11.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Han Seung-soo 3% (individual)
Controlling bloc incl. related parties 62.28%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Jeil Pharmaceutical is a drugmaker that makes and sells prescription drugs dispensed in hospitals and clinics.
- The largest revenue axis is the cholesterol drug Lipitor (active ingredient atorvastatin) and the neuropathic-pain and epilepsy drug Lyrica (active ingredient pregabalin), and these two products make up roughly a third of total revenue.
- These mainstay products have long carried the character of 'in-licensed' goods brought in from overseas drugmakers to sell, so revenue is large but the margin the company keeps was thin.
- That is why, in recent years, it has been deliberately trimming these low-margin in-licensed products and reshaping its business toward a larger share of its own manufactured and developed products.
- Another core axis is the listed subsidiary Onconic Therapeutics, which owns the proprietary new drug Zaqbo (a treatment for gastroesophageal reflux disease).
- Because this company's new-drug value is another engine of the Jeil group's value, the picture comes into focus when it is understood as a company holding both a core drug business and a stake in a new-drug subsidiary.
- Almost all revenue arises domestically (about ₩545.9 billion in Korea in 2025).
- The latest close is ₩10,170 and market cap is ₩149.5 billion.
- The price sits below both the 20-day line (₩10,218) and the 60-day line (₩12,009).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 42.0, a neutral level.
- The one-month change is +0.2%, the three-month change is -24.1%, and the position versus the 52-week high is -41.5%.
- Relative strength versus the KOSPI is 6 (on a 1-99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 95% of all stocks by strength.
- Over the past three months it lagged the index by 37.7%.
- It is best to read the chart alongside trading volume and disclosure dates.
- The valuation metrics are on the low side versus peers.
- P/B (how many times net assets the share price is) is 0.71x, trading cheaper than net assets, and the forward P/E on this year's earnings (how many times one year's earnings the share price is) is below the pharmaceutical-sector average, reading as a signal of undervaluation.
- Profitability is supportive too: ROE (how much is earned in a year on equity) is 11.1%, above the pharma average.
- For reference, the confirmed trailing P/E computed on last year's results is 6.40x, even lower than the forward P/E, partly because 2025 net profit (₩23.4 billion) was larger than operating profit (₩20.7 billion).
- That net profit exceeded what the core business earned reflects some non-operating factors added in, so the forward P/E, which gauges normal core-business earnings, is a steadier yardstick.
- The key point is that even that forward P/E is below the sector average.
- On the balance sheet, the debt ratio (debt versus equity) is 123%, somewhat present for pharma, but with a current ratio of 128% and interest coverage of 4.3x, there is no strain on short-term repayment or interest coverage.
- The revenue top line is shrinking.
- It fell three years running, from ₩726.4 billion in 2023 to ₩704.5 billion in 2024 and ₩567.2 billion in 2025, with last year's drop (-19.5%) the largest.
- But this decline is less about weak business and more the result of deliberately cutting thin-margin in-licensed products.
- The evidence is earnings.
- Operating profit swung from -₩18.9 billion in 2024 to +₩20.7 billion in 2025, and net income from -₩30.0 billion to +₩23.4 billion.
- Revenue shrank, but it is a makeover phase in which the business turned to profitable selling.
- That the forward P/E on this year's earnings is set below the sector average also reflects the picture of core-business margins settling at a normal level after shedding low-margin revenue.
- In other words, it is a structure where margins rise as much as the revenue top line shrank, so the quality of the profit the company actually keeps is better than before.
- Add the growth of subsidiary Onconic, which owns the new drug Zaqbo, and the group-level earnings driver is not fully shown by the core-business numbers alone.
- One thing to check is that in the most recent Q1 2026, operating profit fell 92.6% year over year to about ₩400 million, so on a quarterly basis it still swings widely (net profit stayed positive at ₩3.2 billion).
- The profitable footing continues, but whether the core business delivers profit evenly each quarter is a point to watch further.
- Most recent filings are usual items such as periodic reports, governance, and the shareholder meeting, but meaningful signals are mixed in.
- In February 2026 a filing that annual profit structure changed by 30% or more (a swing from loss to profit) and reports of a treasury-share disposal decision and result followed in succession, showing together the traces of improved results and shareholder-return and balance-sheet decisions.
- The March business report confirmed the swing-to-profit annual results and the mainstay products and domestic revenue makeup, and the Q1 report in May kept the profit but revealed a sharp drop in core-business operating profit.
- The real momentum of the business lies more with subsidiary Onconic Therapeutics than with the body of the filings.
- Zaqbo, after domestic approval, has completed Phase 3 trials in China and India and is under regulatory review, and technology exports and supply contracts to several countries and a U.S.
- Phase 3 strategy are being pursued.
- Progress on this subsidiary is the key variable that drives group value.
- The strengths are clear along several lines.
- The makeover of shedding thin-margin revenue to grow profit was confirmed in an actual swing to profit, and with a low valuation at a 0.68x P/B plus 11.1% ROE profitability, it sits in undervalued territory against both earnings and assets.
- Above all, the stake value in listed subsidiary Onconic, which owns the new drug Zaqbo, is large enough to rival the parent's own market cap, so splitting Jeil into core-business value and subsidiary stake value makes the appeal clearer than looking at the consolidated P/E alone.
- A point to weigh together is the consistency of the core business.
- The revenue top line sits at the end of three years of decline, and Q1 2026 operating profit plunged 92.6%, so quarterly profit is not yet even.
- That 2025 net profit exceeded operating profit means some non-operating factors were mixed into that year's earnings, a point to keep in mind.
- In sum, it is strong when subsidiary value and margin improvement come to the fore, and its strengths stand out more clearly the more the core business's quarterly profit is confirmed to settle onto a normal track.
🔎 Valuation vs peers Inconclusive
The peer set is domestic mid-sized prescription-drug makers and pharma holding companies, though Jeil differs in grain from a pure drugmaker in that its stake value in a listed bio subsidiary (Onconic) is large.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Chong Kun Dang Holdings | 4.76x | 0.30x | 6.35% |
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Dong Wha Pharm | 15.98x | 0.37x | 2.29% |
A P/E of 6.75x and P/B of 0.75x place it in the low-to-middle range among the peers (Chong Kun Dang Holdings P/E 5.09, Dong Wha Pharm 16.69), and its ROE of 11.1% is higher than theirs. On the surface it looks cheap, but there are two reasons it is hard to declare: first, 2025 net profit (₩23.4 billion), the basis of the trailing P/E, was larger than operating profit (₩20.7 billion), so non-operating or one-off factors may be mixed in, and in an earnings-inflection zone the trailing multiple is easily over- or under-interpreted; second, the Onconic stake, a large axis of Jeil's value, is not captured by the consolidated P/E alone, so whether the core-business P/E is cheap or expensive cannot settle the conclusion. So rather than declaring it under- or overvalued, it is left inconclusive, to be viewed together with whether core-business earnings normalize and with subsidiary value.
Price history Close · MA20 · MA60
The latest close is ₩10,170 and the market capitalization is ₩149.5 billion. The price sits below its 20-day moving average (₩10,218) and below its 60-day moving average (₩12,009). 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 42.0, a neutral level. The one-month change is +0.2%, the three-month change is -24.1%, and the position relative to the 52-week high is -41.5%. Relative strength versus the KOSPI is 6 (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 5% of all stocks. Over the past three months it lagged the index by 37.7%. 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 -37.72% / 6M -60.72% / 12M -70.95%
Key metrics vs sector median
Valuation
The P/E of 6.40x is below the sector median (15.98x). The P/B of 0.71x 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, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.1%, above the sector average (3.0%). The operating margin is 3.6%. The debt ratio is 123.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $481.4M | $467.0M | $376.0M | -19.49% ↓ slower |
| Operating profit | $5.8M | -$12.5M | $13.7M | — |
| Net profit | $3.3M | -$19.9M | $15.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $464.4M | $478.7M | $481.4M | $467.0M | $376.0M |
| Operating profit | -$7.0M | -$9.0M | $5.8M | -$12.5M | $13.7M |
| Net profit | -$8.3M | -$8.7M | $3.3M | -$19.9M | $15.5M |
| Revenue CAGR | 4-yr avg -5.14% | ||||
Revenue fell 19.5% year over year (2023 ₩726.4 billion → 2024 ₩704.5 billion → 2025 ₩567.2 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.1%. The two-year revenue CAGR is -11.6%. In the most recent quarter (Q1 2026), revenue was 20.1% 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.
- ROE of 11.1% points to solid profitability.
Points to watch
- Revenue fell 19.5% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-02-23EarningsFiling of a 30%-or-more change in annual profit structure. It disclosed that 2025 revenue of ₩567.2 billion, operating profit of ₩20.7 billion, and net profit of ₩23.4 billion swung from a prior-year loss to a profit.A medium-term positive in which the makeover from trimming low-margin products was confirmed in a swing to profit. Source
- 2026-02-26UpdateReport on the result of a treasury-share disposal. It disclosed the result of disposing held treasury shares following the disposal decision of the preceding February 25.A trace of shareholder-return and balance-sheet decisions; depending on the purpose and scale of the disposal, it affects supply-demand and capital structure. Source
- 2026-03-16EarningsFiling of the 2025 business report. It contained the swing-to-profit annual results of revenue ₩567.2 billion, operating profit ₩20.7 billion, and net profit ₩23.4 billion, along with the mainstay products and domestic revenue makeup.A medium-term positive that confirmed the swing to profit and margin improvement, though the revenue decline persists. Source
- 2026-05-15EarningsFiling of the Q1 2026 report. Cumulative revenue of ₩130.3 billion (-20.1% year over year), operating profit of about ₩400 million (-92.6%), and net profit of ₩3.2 billion (-11.1%); it kept the profit but operating profit fell sharply.A short-term caution signal showing the profitable footing continued but core-business earnings are highly variable. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩567.2 billion (YoY -19.5%) | ₩567.2 billion | Confirmed | link |
| 2025 operating profit / net profit | operating profit ₩20.7 billion / net profit ₩23.4 billion | operating profit ₩20.7 billion / net profit ₩23.4 billion | Confirmed | link |
| Q1 2026 operating profit | approx. ₩0.4 billion (YoY -92.6%) | approx. ₩0.4 billion | Confirmed | link |
| This year's forward P/E | 8.8x(self-estimate) | — | Unverified | — |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-18PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-04-30OwnershipOwnership-change filing
- 2026-03-25Amended filing
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-09Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-02-26TreasuryTreasury-stock disposal decision
📖 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.