Kukjeon Pharma generates revenue through a pharmaceutical division that distributes and sells active pharmaceutical ingredients used as raw materials for finished drugs, and a materials division that develops and supplies high-functionality advanced materials for OLED, semiconductor packaging, and automotive electronics, broadening from a stable drug-ingredient business into materials for growth industries. In May 2026 an adjustment to the exercise price of warrants and, earlier in March, warrant exercises brought in funds while increasing the share count, and in Q1 operating profit swung back to positive. What stands out recently is that if quarterly operating profit continues, net profit also turns positive, and the materials business grows, the appeal grows relative to a share price that is 64% below its 52-week high at a P/B of 1.11x; but on an annual basis it is still in the red with revenue shrinking, and the share count could rise as warrants are exercised.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 4.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 9.4% lower than a year earlier.
- ROE is -4.5% (controlling-interest basis). It is below the sector average.
- Operating margin is -2.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Hong Jong-ho 42.6% (individual)
Controlling bloc incl. related parties 58.58%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Kukjeon Pharma generates revenue through two divisions.
- The first is the pharmaceutical division, which directly synthesizes and produces, or imports, active pharmaceutical ingredients that serve as raw materials for finished drugs, then distributes and sells them to drugmakers.
- The second is the materials division, which develops and supplies high-functionality advanced materials used in OLED and next-generation displays, high-performance semiconductor packaging processes for AI, and automotive electronics.
- In other words, on a foundation of a stable drug-ingredient business, it is broadening into materials for growth industries such as displays, semiconductors, and automotive electronics.
- As a small-cap with a market cap of ₩106.5 billion, it is best to watch not only the flow of the business itself but also how a single disclosure such as fundraising affects results and the share count.
- The recent close is ₩2,170 and the market cap is ₩117.2 billion.
- The price sits below the 20-day line (₩2,263) and below the 60-day line (₩2,997).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator comparing upward and downward strength over the past 14 days on a 0-100 scale) is 40.0, a neutral level.
- The one-month change is -6.3%, the three-month change is -42.3%, and the position versus the 52-week high is -60.8%.
- Relative strength versus the KOSDAQ is 44 (1-99, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- Among all stocks this places it in roughly the top 56% by strength.
- Over the past three months it lagged the index by 22.0%.
- Chart reading is best done alongside trading volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩131.0 billion, operating profit -₩2.6 billion, and net profit -₩4.3 billion, in the red.
- The operating margin is -2.0% and ROE (how much is earned in a year on shareholders' equity) is -4.5%.
- The debt ratio (the size of debt versus equity) is 186.1%, and the current ratio (assets to be turned to cash within a year versus debt due within a year) is 1.13x, so short-term repayment ability is tight but not at a broken level.
- A P/E (how many times a year's profit the price represents) cannot be calculated because of the loss; instead, on a P/B (how many times book net assets the price represents) it is 1.11x.
- That is an ordinary level near book value, so there is little basis to see the P/B itself as an excessive burden.
- The key is whether it escapes the red and earns profit again, and it matters to watch whether that first signal appears in the quarterly results.
- Revenue moved between ₩120 billion and ₩140 billion — ₩122.0 billion in 2023, ₩136.5 billion in 2024, and ₩131.0 billion in 2025 — falling 4.0% from the prior year in 2025.
- Profitability swung more sharply, with operating profit going from ₩6.5 billion in 2023 to -₩2.6 billion in 2025, a swing to a loss.
- But the mood changes in the most recent quarter (Q1 2026).
- Revenue of ₩34.7 billion was down 9.4% from the same period a year earlier, but operating profit of ₩2.7 billion swung to positive and improved sharply versus the same quarter a year ago.
- Earning an operating profit even as revenue shrank can be read as a signal that the cost and expense structure is being tidied up.
- Net profit and loss was -₩2.8 billion, still in the red, which means non-operating costs remain, so the point to watch is whether operating profit continues in the coming quarters and net profit recovers as well.
- This year's annual revenue outlook box (about ₩123.6 billion) points to a flow similar to last year's level, and the real change in results hinges more on whether profit swings from loss to gain than on revenue.
- Recent disclosures center on warrant exercises and exercise-price adjustments tied to fundraising.
- On May 27, 2026, there was an adjustment to the warrant exercise price, followed by warrant exercises on March 18 and March 17.
- A warrant exercise is a disclosure in which funds come into the company while new shares are created and the share count rises.
- It is best to watch where the incoming funds are used — facilities, operations, and the like — and whether they lead to actual revenue and profit, as well as how the increase in share count affects per-share value.
- Kukjeon Pharma's strengths are that it has layered a growth axis of advanced materials for displays, semiconductors, and automotive electronics on top of a steady core business in drug ingredients, and that operating profit swung back to positive in Q1 2026.
- With the share price 64% below its 52-week high and a P/B of about 1.11x, if operating profit continues into the coming quarters and net profit recovers too, the current price band may be a level that does not fully reflect that recovery.
- On the other hand, the cautions are clear.
- On an annual basis it is still in the red with revenue shrinking, and Q1 net profit and loss was also negative.
- In addition, the share count could rise as warrants are exercised, which can weigh on per-share value.
- In short, this is a phase where the appeal grows relative to a lowered share price if quarterly operating profit continues, net profit swings to positive, and the materials business grows, and a phase where it weakens if the loss drags on or fundraising-type disclosures recur.
🔎 Valuation vs peers Fairly valued
A peer group in pharmaceuticals and biotech that sits close in market cap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kyongbo Pharmaceutical | 667.11x | 0.83x | 0.13% |
| ISU Abxis | — | 1.22x | -9.33% |
| Corestem-Chemon | — | 1.82x | -48.63% |
Within pharmaceuticals and biotech, we first looked at public-data peers close in market cap. The current P/E (how many times a year's profit the price represents) is not available, and the P/B (how many times book value the price represents) is 1.22x. However, because lower-market-cap names are heavily affected by profit swings and fundraising disclosures, we did not draw firm conclusions from last year's confirmed-results figures 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 | ₩123.6 billion | — | — |
| Next quarter | Q2 2026 | ₩30.7 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩2,170 and the market capitalization is ₩117.2 billion. The price sits below its 20-day moving average (₩2,263) and below its 60-day moving average (₩2,997). 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 40.0, a neutral level. The one-month change is -6.3%, the three-month change is -42.3%, and the position relative to the 52-week high is -60.8%. Relative strength versus the KOSDAQ is 44 (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 44% of all stocks. Over the past three months it lagged the index by 22.0%. 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 -22.03% / 6M -25.57% / 12M -40.76%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.22x is in line with 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 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -4.5%, below the sector average (3.0%). The operating margin is -2.0%. The debt ratio is 186.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $80.9M | $90.4M | $86.8M | -3.98% ↓ slower |
| Operating profit | $4.3M | $244,068 | -$1.7M | -799.45% ↓ slower |
| Net profit | $3.2M | $1.2M | -$2.8M | -347.60% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $56.6M | $68.7M | $80.9M | $90.4M | $86.8M |
| Operating profit | $4.1M | $2.3M | $4.3M | $244,068 | -$1.7M |
| Net profit | $2.7M | $5.9M | $3.2M | $1.2M | -$2.8M |
| Revenue CAGR | 4-yr avg 11.31% | ||||
Revenue fell 4.0% year over year (2023 ₩122.0 billion → 2024 ₩136.5 billion → 2025 ₩131.0 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 799.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.3%. The two-year revenue CAGR is 3.6%. In the most recent quarter (Q1 2026), revenue was 9.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 4.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-27UpdateAdjustment of warrant exercise price: check detailed terms in the source textA disclosure that must be viewed alongside the purpose of the incoming funds and the change in share count. When facilities or operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
- 2026-03-18UpdateWarrant exercise: check detailed terms in the source textA disclosure that must be viewed alongside the purpose of the incoming funds and the change in share count. When facilities or operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
- 2026-03-17UpdateWarrant exercise: check detailed terms in the source textA disclosure that must be viewed alongside the purpose of the incoming funds and the change in share count. When facilities or operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩2,170 | ₩2,170 | Confirmed | link |
| Latest quarterly results | revenue ₩34.7 billion, operating profit ₩2.7 billion | revenue ₩34.7 billion, operating profit ₩2.7 billion | Confirmed | link |
| Annual results | revenue ₩131.0 billion, operating profit -₩2.6 billion | revenue ₩131.0 billion, operating profit -₩2.6 billion | Confirmed | link |
| Fundraising disclosure source text | : | : | Confirmed | link |
| Fundraising disclosure source text | : | : | Confirmed | link |
| Fundraising disclosure source text | : | : | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-28OwnershipOwnership-change filing
- 2026-05-27Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipOwnership-change filing
- 2026-05-07OwnershipOwnership-change filing
- 2026-04-30Disclosure
- 2026-04-20OwnershipOwnership-change filing
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-31Disclosure
- 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.