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JONBUR Research · Initiation

Daewoong · 003090 · Biotech & Pharma

Daewoong: Shares Near 52-Week Low While Filed Profits Stay Solid and Multiples Fall Below Own History

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Daewoong closed at ₩14,950 on 2026-10-23, down 31.4% over one year and close to its 52-week low of ₩14,610. Filed results to H1 2026 show revenue of ₩2.1T and an 11.3% operating margin, while the stock trades at 4.8x earnings and 0.7x book value.

Written Oct 24, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a company with steadily growing revenue and a mid-teens return on equity whose share price has fallen much faster than its reported earnings. The price is down 5.9% over one month, 11.7% over three months and 31.4% over one year, and the multiples are now below the company's own year-end levels shown for 2021 to 2025.

What the data does not explain is why the market is applying such a low multiple. Free cash flow is negative at -₩63.5B over the trailing period, borrowings exceed cash, and operating margin has eased from 14.6% in 2024. Recent filings include a debt guarantee for a third party and a lawsuit, but the data gives no detail on their size or outcome. Investor flows over 20 days show retail buying and net selling by foreign investors and institutions, though the amounts are small.

Business overview

Daewoong is listed on the KOSPI in the Biotech & Pharma sector. It was founded in 1961, has been listed since 1973, and has 58,141,980 listed shares. Market capitalisation is about ₩869.2B.

Annual revenue rose from ₩1.5T in 2021 to ₩2.1T in 2025, with growth of 6.8% to 12.3% in each year shown. Recent news headlines mention an aesthetic class for Nabota in Buenos Aires and a possible 2027 GMP approval for a microneedle facility, but the data gives no financial detail on either. Foreign ownership is 5.0%, versus 5.1% sixty days earlier, and the short balance is 0.8%.

Financial analysis

These figures come from filed financial statements. For the trailing period to H1 2026, revenue was ₩2.1T, operating income ₩239.7B and net income ₩179.4B. That gives an operating margin of 11.3%, a net margin of 8.5% and a return on equity of 16.0%.

For 2025, revenue was ₩2.07T (up 6.8%), operating income ₩261.8B (12.7% margin) and net income ₩175.1B. In 2024, operating income was higher at ₩281.9B (14.6% margin), but net income was only ₩57.9B and ROE 6.0%. In 2023, net income was ₩152.7B.

The balance sheet shows liabilities at 85.2% of equity, cash of ₩267.8B and borrowings of ₩397.1B. Trailing free cash flow was negative at -₩63.5B.

Valuation

At the current price, the P/E is 4.8, P/B 0.7 and P/S 0.4, with a dividend yield of 1.3%. Enterprise value is ₩971.5B; EV/EBITDA is not available. Year-end P/E was 7.3 in 2025, 21.7 in 2024 and 7.9 in 2023, and year-end P/B ranged from 1.1 to 2.5 over 2021 to 2025.

The listed peers trade at much higher multiples: P/E from 15.0 (SK biopharmaceuticals) to 81.0 (Alteogen), and P/B from 2.5 to 29.1. These companies are far larger or differ in business, so the comparison is only indicative.

The valuation model is a 5-year discounted cash flow at a 7.0% rate, based on the trailing period to H1 2026. It gives a model estimate based on the assumptions shown of ₩35,759 per share in the base case, ₩11,310 in the bear case and ₩79,208 in the bull case. The current price of ₩14,950 is below the base estimate and above the bear case. The range is very wide, which shows how sensitive the result is to assumptions. This is not a target or a reason to buy or sell.

Catalysts

  • The half-year report filed on 2026-08-14 gave the latest figures, and the next periodic filing will show whether margins and cash flow are improving.
  • A filed major sales or supply contract (2026-06-26) could matter, although the data does not give its size.
  • A subsidiary new facility investment filing (amended 2026-06-30) and news of a possible 2027 GMP approval for a microneedle facility point to capacity expansion.
  • The 2026-09-02 lawsuit filing could matter once its outcome and size are known; neither is in the data.
  • Retail buying against net selling by foreign and institutional investors over 20 days could shift if sentiment around the shares changes.

Risks

  • Trailing free cash flow is negative at -₩63.5B while borrowings of ₩397.1B exceed cash of ₩267.8B.
  • Operating margin has slipped from 14.6% in 2024 to 11.3% in the latest trailing period.
  • Net income has swung widely (₩57.9B in 2024 versus ₩175.1B in 2025), making earnings less predictable.
  • A debt guarantee to a third party and a lawsuit were disclosed in September 2026, and the data does not show their financial impact.
  • The share price is near its 52-week low with a 31.4% one-year decline, and the model's bear case of ₩11,310 is below the current price.

Closing view

The filed numbers show a growing, profitable company with a 16.0% ROE, while the market values it at 4.8x earnings and 0.7x book, well below peers and its own recent history. The model estimate of ₩35,759 per share sits well above the ₩14,950 price, but the bear-to-bull range is wide and rests on assumptions. Negative free cash flow, debt, a softer margin and unresolved filings are the points that may explain the market's caution. The data alone does not settle whether the discount is justified, so this report offers no recommendation.

Model estimate of fair value

Bear
₩11,310
-22%
Base
₩35,759
+146%
Bull
₩79,208
+446%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)Daewoong: Shares Near 52-Week Low While Filed Profits Stay Solid and Multiples Fall Below Own History

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information