L&C Bio makes tissue-regeneration materials that are implanted into the human body. Its core business is MegaDerm, an acellular dermal matrix made by stripping the cells from donated skin, which accounts for 80-86% of revenue, with the Re2O skin-booster and MegaDerm Plus (approved by China's NMPA) layered on as growth drivers. The Q1 report in May revealed a strong rebound with revenue up 71.4% and a 19.8% operating margin, and in April the company voluntarily disclosed a corporate value-up plan targeting a medium-to-long-term operating margin of 32% and an overseas revenue share of 38%, along with an 8.5% dividend increase. What stands out is that the case for high-margin new-product capacity expansion and China entry lifting second-half profit is clear, but the earnings volatility and dilution potential stemming from convertible-bond derivatives, a current ratio of 58.5%, and the fact that a +35% six-month rally is already partly priced in all need to be weighed together.
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 58.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 18.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 71.4% higher than a year earlier.
- ROE is -69.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.2%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Hwan-chul 25.69% (individual)
Controlling bloc incl. related parties 26.93%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- L&C Bio makes tissue-regeneration materials that are implanted into the human body.
- Its flagship product, MegaDerm, is an acellular dermal matrix made by removing the cells from donated skin to leave only the scaffold, and it is implanted in applications such as burns, breast reconstruction, and abdominal-wall reconstruction.
- This human-tissue implant material makes up 80-86% of total revenue, a firmly established core business.
- On top of that, Re2O, promoted as the world's first acellular-dermal-matrix skin booster, is growing quickly, and the company's China subsidiary received an NMPA (the Chinese equivalent of a drug regulator) import license for MegaDerm Plus and began local sales this year.
- In short, growth drivers in aesthetics/regeneration new products and China are layered on top of a stable core implant-materials business.
- The latest close is ₩69,800 and the market cap is ₩1.9 trillion.
- The price sits below the 20-day line (₩84,380) and below the 60-day line (₩75,037).
- Trading under both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 38.9, a neutral reading.
- The price is down 6.4% over one month and up 9.1% over three months, and it stands 41.0% below its 52-week high.
- Relative strength versus the KOSDAQ is 90 (on a 1-99 scale that weights recent returns against the index over the past year more heavily toward the present; higher means stronger than the market), placing it in roughly the top 9% of all stocks by strength.
- Over the past three months it outpaced the index by 46.1%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- This is a stock that is easy to misread from the surface metrics alone.
- No P/E can be calculated because last year's net profit was a loss, and the P/B is high at 9.50x.
- But last year's net loss of ₩138.1 billion did not come from the core business; it came from a valuation loss of about ₩110.3 billion on derivatives attached to convertible bonds (bonds the company issued that can later be converted into shares).
- When the share price rises, the valued amount of this conversion-right liability grows and is booked as an accounting loss, a non-cash item with no cash outflow.
- Actual operating profit was a positive ₩4.4 billion last year, and it already reached ₩6.0 billion (a 19.8% operating margin) in Q1 this year.
- The debt ratio is 125% and the current ratio (assets readily usable now against debt due within a year) is 58.5%, so short-term liquidity is not comfortable and this is a point to keep watching.
- The ROE of minus 69.7% is likewise a distortion created by the same derivative valuation loss, so this company has to be read through its operating-profit trend rather than last year's net profit to see its true substance.
- Revenue grew from ₩45.7 billion in 2021 to ₩85.5 billion in 2025, a five-year compound annual growth rate of about 17%, and it actually accelerated to +18.7% last year.
- Operating profit also rose steadily, from ₩2.9 billion in 2023 to ₩3.9 billion in 2024 to ₩4.4 billion in 2025.
- In particular, Q1 revenue this year surged to ₩30.3 billion, up 71.4% from the same period last year, and the operating margin stepped up from the mid-single digits to 19.8%.
- This is because Re2O, a high-margin product, began selling in earnest.
- The company completed a capacity expansion in May and entered full monthly production of 80,000 units from June, targeting a 150,000-unit-per-month system by year-end, so revenue is expected to grow larger toward the second half (a quarter-by-quarter rising ramp).
- Its disclosed corporate value-up plan targets a medium-to-long-term overseas revenue share of 38% and an operating margin of 32%, supporting the view that the current margin gain is not a temporary optical effect but a structural direction.
- Because this year is the first full year in which the Re2O expansion effect is reflected, judging on last year's loss (an accounting illusion) alone would miss the real earnings trajectory.
- This year's disclosures mix growth preparation with governance housekeeping.
- On April 1 the company voluntarily disclosed a corporate value-up plan, stating targets of a medium-to-long-term operating margin of 32% and an overseas revenue share of 38%, along with a shareholder-return direction (a 2025 payout ratio of 25% and an 8.5% dividend increase).
- On May 11 the 2025 consolidated and standalone audit reports were filed, confirming the substance of the large net loss (the convertible-bond derivative valuation loss), and the May 15 Q1 report revealed the strong rebound of +71.4% revenue and a 19.8% operating margin.
- Meanwhile, on June 5 filings on changes in executives' and major shareholders' holdings of specified securities and on changes in large-holding status, along with a May filing related to call options, continued the flow of convertible-bond and equity disclosures, so the potential overhang from convertible-bond conversion remains something to keep checking.
- The points to watch are clear.
- With the core human-tissue implant business growing solidly, the Re2O expansion and China entry are structured to lift revenue and profit from the second half, so the basis for why operating profit grows so much this year (capacity expansion of high-margin new products) is clear.
- Because last year's net loss and the uncalculable P/E are an illusion created by the non-cash accounting item of convertible-bond derivatives, this stock is best read through its operating-profit trajectory and rising margins.
- The cautions are (1) the earnings volatility stemming from convertible bonds and the conversion-right liability, and the potential increase in share count (dilution) on future conversion; (2) the tight short-term liquidity implied by a 58.5% current ratio; and (3) the fact that a +35% six-month rally has already priced in much of the upside expectation.
- Ultimately, the stock is strong if Re2O reaches full production and China/exports materialize as the expected ramp implies, and it becomes a burden if the expansion effect is delayed or convertible-bond-related volatility grows.
🔎 Valuation vs peers Fairly valued
Compared against Korean-listed companies based on human-tissue implants, regenerative medicine, and aesthetics/bio materials; for names with no calculable P/E due to net losses, the comparison uses P/B and growth.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hans Biomed | 0.00x | 10.11x | -92.99% |
| Hugel | 20.61x | 3.06x | 14.82% |
| Caregen | 157.94x | 14.94x | 9.46% |
| InBody | 24.42x | 2.35x | 9.64% |
The reason last year's P/E cannot be calculated is that net profit was a loss due to the (non-cash) convertible-bond derivative valuation loss, and that cannot serve as a basis for valuation. Viewed through the core business's earnings trajectory, the operating margin already approaches 20% and revenue is structured to grow toward the second half, so a forward P/E on this year's normalized earnings is estimated at roughly 100x. The absolute figure is high, but this is characteristic of an early phase where earnings have just passed an inflection point, and there are peer cases such as Caregen (in the 200x range) that carry a large growth premium, so it is hard to call it an extreme overvaluation given the growth rate. Conversely, against the 20-30x of mature, stable materials/medical companies like Hugel and InBody, there is clearly a premium, so it cannot be called undervalued either. The P/B of 12.3x is also high, but with the earnings level stepping up, there is room for the multiple to fall naturally as earnings fill in from next year onward, so for now we place it in the fairly valued range.
Price history Close · MA20 · MA60
The latest close is ₩69,800 and the market capitalization is ₩1.9 trillion. The price sits below its 20-day moving average (₩84,380) and below its 60-day moving average (₩75,037). 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 38.9, a neutral level. The one-month change is -6.4%, the three-month change is +9.1%, and the position relative to the 52-week high is -41.0%. Relative strength versus the KOSDAQ is 90 (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 91% of all stocks. Over the past three months it outpaced the index by 46.1%. 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 +46.05% / 6M +36.87% / 12M +136.41%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 9.50x is above 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.
Profitability & financials
Return on equity (ROE) is -69.7%, below the sector average (3.0%). The operating margin is 5.2%. The debt ratio is 125.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $43.7M | $47.7M | $56.7M | +18.66% ↑ faster |
| Operating profit | $1.9M | $2.6M | $2.9M | +14.13% ↓ slower |
| Net profit | $29.4M | $93.8M | -$91.6M | -197.58% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $30.3M | $34.8M | $43.7M | $47.7M | $56.7M |
| Operating profit | $8.7M | $6.3M | $1.9M | $2.6M | $2.9M |
| Net profit | $9.2M | $3.0M | $29.4M | $93.8M | -$91.6M |
| Revenue CAGR | 4-yr avg 16.96% | ||||
Revenue rose 18.7% year over year (2023 ₩65.9 billion → 2024 ₩72.0 billion → 2025 ₩85.5 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 14.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.0%. The two-year revenue CAGR is 13.9%. In the most recent quarter (Q1 2026), revenue was 71.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 18.7% year over year, a sign of growth.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 58.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-01IRVoluntary disclosure of a corporate value-up plan. Targets a medium-to-long-term overseas revenue share of 38% and an operating margin of 32%, and presents shareholder returns (a 2025 payout ratio of 25% and a dividend up 8.5% year on year).Formalizes the medium-term direction of margin expansion and shareholder returns. A basis by which the company itself specifies the structural upside from the current mid-single-digit operating margin. Source
- 2026-05-11EarningsFiling of the 2025 consolidated and standalone audit reports. Revenue of ₩85.5 billion (consolidated) and operating profit of ₩4.4 billion, but a net loss of ₩138.2 billion (controlling minus ₩138.2 billion). The loss came from a convertible-bond derivative valuation loss of about ₩110.3 billion (non-cash).Appears on the surface to be a large loss, but the core business is profitable. A key disclosure that confirmed the net loss is an accounting-valuation item. Source
- 2026-05-15EarningsQ1 2026 report. Consolidated revenue of ₩30.3 billion (+71.4% year on year), operating profit of ₩6.0 billion (19.8% operating margin), and net profit of ₩2.7 billion. Human-tissue implants made up 86% of revenue, with Re2O and China sales gaining momentum.The operating margin leaps from the mid-single digits to nearly 20%. The second-half ramp-up becomes visible thanks to the Re2O expansion effect. Source
- 2026-06-05FilingFiling on changes in executives' and major shareholders' holdings of specified securities, and a large-holding status report (simplified form). Ongoing disclosures related to convertible bonds and equity changes.A signal that the potential overhang from convertible-bond conversion and equity changes must be kept under continuous review. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Market cap = closing price × listed shares | ₩69,800 | ₩69,800 | Confirmed | link |
| Q1 2026 consolidated revenue / operating profit / net profit | revenue 302.9 · operating profit 60.0 · net profit 27.3 | revenue 30,295 · operating profit 5,999 · net profit 2,726 | Confirmed | link |
| Cause of the 2025 net loss (convertible-bond derivative valuation loss) | -1,381.7 | 110,334, 138,607 | Confirmed | link |
| 2026 full-year net profit estimate (normalized basis) | approx. 245 | — | Unverified | link |
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipOwnership-change filing
- 2026-05-29Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-23Disclosure
- 2026-04-16OwnershipOwnership-change filing
- 2026-04-01Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
📖 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.