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.
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 10.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 32.2%.
- 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
- 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 ₩42,000 and market cap is ₩613.2 billion.
- The price sits below its 20-day line (₩42,800) and its 60-day line (₩48,755).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the past 14 days on a 0-100 scale) is 42.5, a neutral level.
- The one-month change is -4.0%, the three-month change is -25.4%, and the price stands -65.5% below its 52-week high.
- Relative strength versus the KOSPI is 2 (on a 1-99 scale, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 99% of all stocks by strength.
- Over the past three months it lagged the index by 40.6%.
- Chart interpretation is best done alongside trading volume and the dates of disclosures.
- 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 | 30.56x | 1.13x | 3.69% |
| Daewon Pharmaceutical | 0.00x | 0.67x | -0.52% |
| Samil Pharmaceutical | 0.00x | 0.99x | -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 ₩42,000 and the market capitalization is ₩613.2 billion. The price sits below its 20-day moving average (₩42,800) and below its 60-day moving average (₩48,755). 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 42.5, a neutral level. The one-month change is -4.0%, the three-month change is -25.4%, and the position relative to the 52-week high is -65.5%. Relative strength versus the KOSPI is 2 (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 1% of all stocks. Over the past three months it lagged the index by 40.6%. 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 -40.56% / 6M -58.69% / 12M -83.67%
Key metrics vs sector median
Valuation
The P/E of 7.53x is below the sector median (15.98x). The P/B of 0.77x 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 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.136x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.2%, above the sector average (3.0%). The operating margin is 32.2%. The debt ratio is 106.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $160.6M | $178.6M | $190.4M | +6.61% ↓ slower |
| Operating profit | $55.4M | $61.5M | $61.3M | -0.28% ↓ slower |
| Net profit | $49.4M | $45.5M | $54.0M | +18.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $160.6M | $178.6M | $190.4M |
| Operating profit | — | — | $55.4M | $61.5M | $61.3M |
| Net profit | — | — | $49.4M | $45.5M | $54.0M |
| 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 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 3.6%, is on the high side.
- ROE of 10.2% 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
- 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.
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