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JONBUR Research · Initiation

Daewoong Pharma · 069620 · Biotech & Pharma

Daewoong Pharma: Profits Recovered Since 2024 While the Share Price Fell Roughly 22% Over One Year

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Daewoong Pharma's trailing revenue was ₩1.6T with an operating margin of 11.7% as of H1 2026, while the shares closed at ₩103,600, near the 52-week low of ₩102,200. Trailing P/E is 6.1 and P/B is 1.1, but free cash flow is negative and several data points are not available.

Written Oct 13, 2026 · Data as of Oct 12, 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 steady revenue growth and improved profitability. Revenue rose from ₩1.15T in 2021 to ₩1.57T in 2025, and operating margin moved from 7.7% to 12.5%. Trailing ROE of 21.0% is high compared with the 3.2% to 7.1% seen in several earlier years.

The share price tells a different story. It is down 7.4% over one month, 21.8% over three months and 21.7% over one year, and it sits 48.0% below the 52-week high of ₩199,400. The data does not explain the decline. Trailing free cash flow of -₩103.9B is a point of caution. Investor flow, foreign ownership and short balance data are not available, so we cannot say who has been trading the stock.

Business overview

Daewoong Pharma is listed on KOSPI in the Biotech & Pharma sector. It was founded in October 2002 and listed in November 2002, and has 11,586,575 listed shares. Market capitalization is about ₩1.2T and enterprise value is about ₩1.34T. The company is led by co-CEOs 이창재 and 박성수. Revenue has grown every year in the data, from ₩1.15T in 2021 to ₩1.57T in 2025. Growth was 11.0% in 2022, 7.4% in 2023, 3.4% in 2024 and 10.4% in 2025. The data does not break revenue down by product or segment.

Financial analysis

The figures below come from filed financial statements (DART), consolidated where available.

In 2025, revenue was ₩1.57T, operating income ₩196.8B and net income ₩195.9B, for an operating margin of 12.5% and ROE of 21.8%. In 2024, net income was only ₩24.7B (ROE 3.2%) even though operating income was ₩147.9B. Net income was uneven in earlier years: ₩24.7B in 2021, ₩42.2B in 2022 and ₩121.7B in 2023.

Trailing figures as of H1 2026: revenue ₩1.64T, operating income ₩190.5B (11.7% margin), net income ₩195.5B (12.0% margin). Net income slightly above operating income suggests non-operating gains, but the data does not give the source.

The balance sheet shows liabilities to equity of 113.0%, cash of ₩154.7B and borrowings of ₩292.2B. Trailing free cash flow is -₩103.9B.

Valuation

Trailing P/E is 6.1, P/B 1.1 and P/S 0.7, with a dividend yield of 0.8%. EV/EBITDA is not available. Year-end 2025 multiples were P/E 10.2 and P/B 2.0, so the current multiples are lower than at the end of 2025. Earlier year-end multiples are not available.

The listed peers are far larger and trade at much higher multiples: Samsung Biologics P/E 43.1 and P/B 10.2, Celltrion 24.5 and 2.2, Hanmi Pharm 28.0 and 4.3, Alteogen 63.9 and 23.0, and HLB P/B 16.9 (P/E not available). These are mostly different business types, so the comparison is only a rough guide.

The valuation model's estimate per share is not available (null), so no comparison with the ₩103,600 share price can be made.

Catalysts

  • The shareholders' meeting results and an independent director appointment/change filing, both dated 2026-09-09, may affect governance.
  • A lawsuit filing or ruling was disclosed on 2026-09-02, but the data gives no details on its content or size.
  • A decision on debt guarantees for another party was filed on 2026-09-04, which may affect the company's obligations.
  • The H1 2026 half-year report (2026-08-14) and the preliminary earnings (2026-07-29) set out the latest trailing results.
  • An insider shareholding report was filed on 2026-08-21, though the data does not show the direction or size of the change.

Risks

  • Free cash flow was negative at -₩103.9B on a trailing basis, which may add to borrowing needs.
  • Borrowings of ₩292.2B are above cash of ₩154.7B, and liabilities to equity are 113.0%.
  • Net income has swung widely, such as ₩24.7B in 2024 versus ₩195.9B in 2025, so earnings quality is hard to judge.
  • The share price is near its 52-week low after a 21.7% one-year decline, and the data does not give the cause.
  • A lawsuit and a debt guarantee for another party appear in recent filings, and their financial impact is not stated.

Closing view

The filed numbers show a company with growing revenue, a higher operating margin and strong trailing ROE, valued at low multiples compared with its own recent year-end level and with the much larger listed peers. Against this, the share price has fallen sharply, free cash flow is negative, borrowings exceed cash, and net income has been volatile. Flow data and the model estimate are not available, so the evidence is incomplete. The data neither confirms nor rules out that the low multiples reflect real concerns rather than a mispricing.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)Daewoong Pharma: Profits Recovered Since 2024 While the Share Price Fell Roughly 22% Over One 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