Myungin Pharm (317450) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Myungin Pharm is a pharmaceutical company specializing in treatments for central nervous system (CNS) disorders such as schizophrenia, depression, Parkinson's disease, and dementia. These neuropsychiatric drugs account for more than three-quarters of revenue, and the company holds the number-one domestic share. Over-the-counter products such as the gum treatment 'Igatan F' and the constipation remedy 'Meikin Q' serve as cash cows, adding brand recognition and extra cash. In March its value-up plan set out solidifying its CNS lead, expanding exports, and strengthening shareholder returns, and it targeted a payout ratio of 25% or more for 2026-2028, recording a 2025 payout ratio of 26.9% while raising total dividends from ₩11.2 billion to ₩21.9 billion. The notable point of late is that its strengths lie in a leading position in neuropsychiatric drugs, operating margins in the 30% range, net cash, a high dividend, and a forward P/E that is falling, while its revenue growth has been slowing, so it needs checking whether the profit improvement came mainly from margins, and the trend is weak after a post-listing price correction.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Pharmaceuticals (profitable)” (Biotech & Pharmaceuticals), a type typically read first through P/E.
Established, profit-generating drugmakers earn fairly steady revenue from prescriptions and product sales, which makes their earnings reasonably predictable. That is why price-to-earnings (P/E) — the share price set against current net income — is the first lens here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 6.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.7% higher than a year earlier.
- ROE is 10.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 33.1%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Haeng-myung 50.88% (individual)
Controlling bloc incl. related parties 73.8%
With the controlling bloc holding 74%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Myungin Pharm is a pharmaceutical company specializing in treatments for central nervous system (CNS) disorders (those that act on the brain and nerves). Neuropsychiatric drugs for conditions such as schizophrenia, depression, Parkinson's disease, and dementia account for more than three-quarters of revenue. In fact, it holds the number-one share in the domestic neuropsychiatric drug market. Alongside prescription drugs it also sells over-the-counter products, with the gum treatment 'Igatan F' and the constipation remedy 'Meikin Q' as its flagship brands. These two OTC products, well known to the public through years of advertising, serve as cash cows. In short, stable prescription (CNS) drugs form the base of its profit, while Igatan and Meikin add brand recognition and extra cash.
The latest close is ₩45,150 and the market capitalization is ₩659.2 billion. The price sits above its 20-day moving average (₩42,128) and above its 60-day moving average (₩44,341). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 60.1, a neutral level. The one-month change is +3.1%, the three-month change is -16.9%, and the position relative to the 52-week high is -63.0%. Relative strength versus the KOSPI is 10 (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 9% of all stocks. Over the past three months it outpaced the index by 0.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation is on the low side. The P/E ratio is 7.5x and P/B is 0.77x, trading below book value. Profitability is good, with an operating margin of 32.2% and a net margin of 28.4%, high even among pharmaceutical firms, and an ROE of 10.2%. The financial structure is very solid. It is in a net cash position (cash exceeds total borrowings by ₩30.4 billion), and the current ratio (assets convertible to cash within a year against debt due within a year) is 13.9x, meaning there is essentially no debt burden. The ratio of actual debt to equity is also low, around 6%. EV/EBIT (enterprise value including debt divided by operating profit, an extended version of P/E) comes to 6.3x, lower than even the P/E, because with net cash the enterprise value is smaller than the market cap. The FCF yield (the ratio of cash actually earned to market cap) is 7.7%, indicating decent cash generation as well.
Revenue rose for three straight years, growing gently from ₩242.3 billion in 2023 to ₩287.3 billion in 2025. That said, the pace of increase is slowing, and 2025 operating profit was almost flat versus the prior year (-0.3%). Net profit, by contrast, jumped 18.6% to ₩81.4 billion in 2025. The first quarter of 2026 was especially strong. Revenue rose a gentle 2.7%, but operating profit was up 15.4% and net profit up 22.0%, so profit grew far faster than revenue. This appears to reflect thicker retained profit from cost and SG&A control. Extending this Q1 momentum through the year, net profit could grow to roughly ₩93 billion. In that case the forward P/E would be around 6.6x, even cheaper than the trailing basis (7.5x). In other words, this is a stock whose valuation falls the more you look at it on a forward basis, since it is in a profit-growth phase.
The most notable disclosure is the March 2026 value-up plan. It set out solidifying its number-one CNS share, developing CNS products using its new pellet plant and expanding exports, and strengthening shareholder returns as its core themes. Dividend policy was also spelled out. It targeted a payout ratio (the share of net profit paid out as dividends) of 25% or more for 2026-2028, and the 2025 payout ratio was 26.9%. In fact total dividends rose from ₩11.2 billion in 2024 to ₩21.9 billion in 2025. Beyond this, disclosures on the annual shareholders' meeting results, a change of CEO, and stakes held by the largest shareholder and executives followed. As a recently listed company, this is a period with many disclosures clarifying shareholder returns and the ownership structure.
The strengths are clear: a stable business base as the domestic leader in neuropsychiatric drugs, an operating margin in the 30% range, net cash, a high dividend, and a profit-growth phase. On a forward basis the P/E falls below last year's, making the valuation more attractive. On the other hand, there are cautions too. The pace of revenue growth itself is slowing, so it needs checking whether the profit improvement came mainly from margins. The price has corrected sharply since listing and the trend is weak. In sum, from the standpoint of prizing stable cash generation and shareholder returns, the valuation and dividend appeal stand out. From the standpoint of expecting rapid top-line growth or new-drug momentum, by contrast, the slowdown may read as a weakness.
🔎 Valuation vs peers Undervalued
Mid-sized domestic-listed pharmaceutical companies that sell both prescription and over-the-counter drugs; the business details differ but the domestic finished-pharmaceutical model is similar.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Bukwang Pharmaceutical | 33.62x | 1.27x | 3.69% |
| Daewon Pharmaceutical | 0.00x | 0.65x | 1.09% |
| Samil Pharmaceutical | 0.00x | 1.19x | -26.01% |
The peer pharmaceutical companies have either been unprofitable of late (Daewon Pharmaceutical, Samil Pharmaceutical) or carry a high valuation relative to profit (Bukwang Pharmaceutical at a P/E of 32x), whereas Myungin Pharm trades low on both profit and equity at a P/E of 7.5x and P/B of 0.77x. Its ROE of 10.2% also gives it an edge in profitability over the peer group. The trailing P/E is low, and factoring in the 22% rise in Q1 net profit this year, the forward P/E falls further to 6.6x. In other words, being in a profit-growth phase eases the valuation burden. Given the net cash, high dividend, and high margins, the current valuation is judged to be on the low side.
Price history Close · MA20 · MA60
The latest close is ₩45,150 and the market capitalization is ₩659.2 billion. The price sits above its 20-day moving average (₩42,128) and above its 60-day moving average (₩44,341). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 60.1, a neutral level. The one-month change is +3.1%, the three-month change is -16.9%, and the position relative to the 52-week high is -63.0%. Relative strength versus the KOSPI is 10 (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 9% of all stocks. Over the past three months it outpaced the index by 0.2%. 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 +0.20% / 6M -41.14% / 12M -79.67%
Key metrics Computed vs sector median
Valuation
The P/E of 8.09x is below the sector median (15.02x). The P/B of 0.83x is below the sector median (1.10x). 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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.135x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.8%, above the sector average (1.0%). The operating margin is 33.1%. The debt ratio is 9.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $170.2M | $189.3M | $201.8M | +6.61% ↓ slower |
| Operating profit | $58.7M | $65.2M | $65.0M | -0.28% ↓ slower |
| Net profit | $52.3M | $48.2M | $57.2M | +18.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $170.2M | $189.3M | $201.8M |
| Operating profit | — | — | $58.7M | $65.2M | $65.0M |
| Net profit | — | — | $52.3M | $48.2M | $57.2M |
| Revenue CAGR | 2-yr avg 8.87% | ||||
Revenue rose 6.6% year over year (2023 ₩242.3 billion → 2024 ₩269.4 billion → 2025 ₩287.3 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 0.3% year over year. The decline widened. Over the 3 years on record, revenue compound annual growth (CAGR) is 8.9%. The two-year revenue CAGR is 8.9%. In the most recent quarter (Q1 2026), revenue was 2.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
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 3.3%, is on the high side.
- ROE of 10.8% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 6.6% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-27FilingValue-up plan disclosed. Set out solidifying its number-one CNS share, developing CNS products based on its new pellet plant and expanding exports, and strengthening shareholder returns, explicitly targeting a payout ratio of 25% or more for 2026-2028.Mid-term, it lays out the visibility of shareholder returns and the direction of export growth. Grounds for the dividend appeal. Source
- 2026-05-14EarningsQ1 2026 quarterly report. Revenue of ₩72.1 billion (+2.7%), operating profit of ₩25.1 billion (+15.4%), and net profit of ₩22.7 billion (+22.0%), with profit growing faster than revenue.Short-term, confirms the profit improvement. A factor that lowers the forward valuation. Source
- 2026-06-01FilingCorporate governance report disclosed. As a listed firm, it discloses the state of its board and shareholder returns.Mid-term, relates to governance transparency for a recently listed company. Source
- 2026-03-26FilingDisclosure of annual shareholders' meeting results and a change of CEO. The management and agenda were confirmed at the first annual meeting after listing.Mid-term, relates to stabilizing the management structure in the early post-listing period. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-14PeriodicQuarterly report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-08OwnershipLargest-shareholder ownership change report
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-27Disclosure
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' 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.