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JONBUR Research · Initiation

Yungjin Pharm · 003520 · Biotech & Pharma

Yungjin Pharm: Flat Revenue, Return to Losses and a Share Price Down 48.4% Over a Year

Why this report

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Yungjin Pharm's trailing revenue is about ₩253.0B, but the company swung to an operating loss of ₩4.3B in the 12 months to H1 2026 after small profits in prior years. The shares closed at ₩1,013, down 48.4% over one year and close to the 52-week low of ₩978.

Written Oct 21, 2026 · Data as of Oct 20, 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 business with stable sales but thin and unreliable profitability. Revenue grew every year from 2021 to 2025 (₩196.1B to ₩254.3B), yet growth slowed to 0.9% in 2025, and operating margin fell from 3.5% in 2024 to 1.3% in 2025 and -1.7% on a trailing basis. The data does not show why margins weakened, since no news headlines are available. On the other side, losses have narrowed sharply from the 2021-2022 levels, and the 2022 operating margin of -3.4% was worse than today's. Market signals are weak: the price is down 14.3% in three months, foreign ownership slipped from 2.8% to 2.1% over 60 days, and the model estimate is well below the share price.

Business overview

Yungjin Pharm is a KOSPI-listed company in the biotech and pharma sector, founded in 1962 and listed in 1973, led by CEO 이기수. It has 182,892,731 listed shares and a market capitalization of about ₩185.3B, which is small next to the listed peers in the data (Yuhan at ₩6.3T, Celltrion at ₩45.8T). Revenue has risen from ₩196.1B in 2021 to ₩254.3B in 2025, with annual growth of 11.4% in 2022, 7.6% in 2023, 7.3% in 2024 and 0.9% in 2025. Recent filings include amended major sales or supply contract notices (Aug 12 and Oct 8, 2026), a lawsuit filing or ruling notice (Sep 1, 2026) and a corrected new facility investment notice (Jul 24, 2026). The details of these are not in the data.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩253.0B, operating income is -₩4.3B (margin -1.7%) and net income is -₩6.3B (margin -2.5%). Return on equity is -7.1%. For 2025, operating income was ₩3.4B and net income was -₩0.2B; in 2024 operating income was ₩8.7B and net income ₩1.2B. Losses were larger in 2022 (net -₩22.0B) and 2021 (net -₩11.6B). The balance sheet shows liabilities at 163.9% of equity, borrowings of ₩16.2B and cash of ₩3.6B. Trailing free cash flow is -₩6.4B, so the company is currently consuming cash.

Valuation

The price-to-book ratio is 2.2, down from 4.0 at the end of 2024 and 2025 and 9.2 at the end of 2021. Price-to-sales is 0.7. Price-to-earnings and EV/EBITDA cannot be worked out because earnings are negative. The dividend yield is 0.0%. Enterprise value is about ₩197.9B. Peers in the data trade at P/E of 14.6 to 83.3 and P/B of 2.6 to 30.0 (Alteogen at the top), so Yungjin's P/B of 2.2 is below all five, although these companies differ greatly in size and profitability. The valuation model (5-year discounted cash flow, 7.3% rate, based on trailing figures to H1 2026) gives a base case of ₩278 per share, with a bear case of ₩0 and a bull case of ₩1,024. This is a model estimate based on the assumptions shown, not a target. The share price of ₩1,013 is well above the base case and roughly at the bull case, meaning the market is pricing in a better outcome than the model's base assumptions.

Catalysts

  • The amended major sales or supply contract filing on Oct 8, 2026 could affect future revenue, though the terms are not in the data.
  • The lawsuit filing or ruling notice on Sep 1, 2026 may matter for costs or liabilities, but its details are not available.
  • The next quarterly report and preliminary earnings will show whether the operating loss of -₩4.3B on a trailing basis is narrowing or widening.
  • The new facility investment filing (corrected Jul 24, 2026) points to capital spending that could weigh on cash flow or support future capacity.
  • Investor flows over the last 20 days were small (retail net buying ₩666M, foreigners net selling ₩617M), so a change in direction would be worth watching.

Risks

  • The company is loss-making on a trailing basis, with operating margin at -1.7% and ROE at -7.1%.
  • Free cash flow is -₩6.4B against only ₩3.6B of cash and ₩16.2B of borrowings, which limits financial flexibility.
  • Liabilities are 163.9% of equity, a fairly leveraged balance sheet for a business with negative earnings.
  • The share price is far above the model's base case of ₩278, and the bear case of ₩0 shows how sensitive the estimate is to assumptions.
  • Revenue growth has slowed to 0.9% in 2025, and the price has fallen 48.4% in a year with foreign ownership declining to 2.1%.

Closing view

The evidence is mixed but leans cautious. Sales have grown steadily and past losses were deeper, yet profits turned negative again and cash flow is negative while leverage is meaningful. The share price sits above the model's base estimate, though the sharp one-year decline shows the market has already reduced its expectations. Key unknowns in the data include the reasons for the margin decline and the content of the recent contract and lawsuit filings. Investors would need those details before drawing firm conclusions.

Model estimate of fair value

Bear
₩0
-100%
Base
₩278
-71%
Bull
₩1,024
+7%

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 7.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 21, 2026InitiationStart of coverage (reader request)Yungjin Pharm: Flat Revenue, Return to Losses and a Share Price Down 48.4% Over a Year

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