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JONBUR Research · Initiation

Caregen · 214370 · Biotech & Pharma

Caregen: Shares Down 35.8% Over a Year as Margins Narrow From Earlier Peaks

Why this report

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

Caregen's KOSDAQ shares closed at ₩40,450 on 2026-10-12, near the 52-week low of ₩39,300 and well below the high of ₩153,800, with a market cap of about ₩2.2T. Filed financials show solid profitability but falling revenue and margins since 2023, while the model fair value is 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 company that is still highly profitable, with a trailing operating margin of 24.4%, a net margin of 30.5% and very low leverage (liabilities to equity of 10.3%). It does not support a picture of steady growth: 2025 revenue fell 11.8% and the operating margin has dropped from 51.0% in 2023 to 28.0% in 2025 and 24.4% on a trailing basis.

The share price has fallen 36.4% in three months and 35.8% in one year, while the trailing P/E of 95 and P/S of 29 remain high. The market appears to be pricing in more than the recent numbers show, but the data gives no explanation for the price move. No news headlines, investor flow, foreign ownership or short balance data are available. Filings include a designation as an unfaithful disclosure corporation on 2026-06-29, which is a governance flag.

Business overview

Caregen is a KOSDAQ-listed Biotech & Pharma company founded on 2001-08-23 and listed on 2015-11-17. It has 53,715,000 listed shares, and the CEO is listed as 정용지. Revenue grew from ₩59.1B in 2021 to ₩69.1B in 2022 (+16.9%), ₩79.2B in 2023 (+14.6%) and ₩82.6B in 2024 (+4.3%), then declined to ₩72.8B in 2025. The data does not describe products or segments.

Financial analysis

All figures come from filed financial statements (DART). Trailing revenue as of H1 2026 is ₩74.9B, operating income ₩18.2B and net income ₩22.9B. Net income exceeds operating income, so non-operating items contributed, but the data does not give details.

Annual operating income peaked at ₩40.4B in 2023 (51.0% margin), then fell to ₩34.2B in 2024 (41.5%) and ₩20.4B in 2025 (28.0%). Net income followed: ₩39.9B, ₩32.3B and ₩20.1B. ROE declined from 18.0% in 2023 to 9.2% in 2025 and is 10.4% on a trailing basis.

The balance sheet is conservative: cash is ₩5.9B, borrowings are not reported in the data, and liabilities to equity is 10.3%. Trailing free cash flow is ₩22.2B.

Valuation

Current multiples are a P/E of 95, P/B of 9.9, P/S of 29 and a dividend yield of 1.0%, with enterprise value of about ₩2.17T. EV/EBITDA is not available. The year-end 2025 P/E was 191.9 and P/B 18.2, so multiples are lower than at last year-end, mainly because of the lower share price. Earlier year-end multiples are not available.

Among the listed peers, P/E ranges from 25.5 (Celltrion) to 63.9 (Alteogen), and P/B from 2.2 (Celltrion) to 23.0 (Alteogen). Caregen's P/E of 95 is above all peers with a P/E figure, while its P/B of 9.9 is similar to Samsung Biologics at 10.2. Peers are far larger by market cap. Our simple 5-year DCF fair value range could not be worked out (fair_value_model is null), so no comparison with the ₩40,450 share price is possible.

Catalysts

  • The half-year report (Jun 2026), filed 2026-08-14, showed trailing revenue of ₩74.9B and an operating margin of 24.4%, and the next reporting update will show whether margins stabilize.
  • Three 5%+ holding reports were filed between 2026-09-23 and 2026-09-29, indicating changes in major shareholdings, though the data does not give details.
  • Insider shareholding reports on 2026-07-10, 2026-07-31 and 2026-10-01 show ongoing insider holding changes, direction not specified.
  • A cash dividend decision was filed on 2026-07-03, relevant to the 1.0% dividend yield.

Risks

  • Revenue fell 11.8% in 2025 and the operating margin has dropped for three straight years, from 51.0% to 28.0%, then 24.4% trailing.
  • The P/E of 95 and P/S of 29 are high against peers and the company's own earnings, leaving the valuation sensitive to further earnings disappointment.
  • The shares are near their 52-week low, down 36.4% in three months, showing strong negative price momentum.
  • Designation as an unfaithful disclosure corporation (reversal and change of disclosures) on 2026-06-29 raises disclosure-quality concerns.
  • Investor flows, foreign ownership, short balance and a model fair value are unavailable, so key sentiment and valuation cross-checks cannot be made.

Closing view

Caregen combines a debt-light balance sheet and healthy absolute profitability with shrinking revenue, falling margins and a steep share price decline. Multiples have eased from year-end 2025 levels but remain high against the listed peers, and the model fair value is unavailable, so the data gives no independent anchor for the current price. The disclosure designation in June 2026 adds a governance consideration. Whether earnings stabilize is the central question the data leaves open.

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)Caregen: Shares Down 35.8% Over a Year as Margins Narrow From Earlier Peaks

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