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JONBUR Research · Initiation

GC WellBeing · 234690 · Biotech & Pharma

GC WellBeing: Rising Revenue and Profit, Negative Free Cash Flow, and a Wide Model Range

Why this report

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

GC WellBeing shares closed at ₩11,270 on 2026-10-16, up 21.6% over one month and 39.3% over three months, with a market cap of about ₩202.4B. Filed results show revenue and profit growing, but free cash flow is negative and borrowings exceed cash by a wide margin.

Written Oct 19, 2026 · Data as of Oct 16, 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 operating improvement. Revenue rose from ₩91.0B in 2021 to ₩164.7B in 2025, and trailing twelve-month revenue to H1 2026 is ₩192.2B. Operating margin is 9.1% and ROE has risen to 12.4% from 6.9% in 2024.

The data is less supportive on cash generation and balance sheet strength. Free cash flow is -₩10.0B, cash is ₩2.9B against borrowings of ₩64.2B, and liabilities are 113.4% of equity. The share price has also moved sharply higher recently, so part of the improvement may already be reflected. No news headlines are available in the data, so the reasons for the recent move cannot be confirmed from it.

Business overview

GC WellBeing is listed on KOSDAQ in the Biotech & Pharma sector. It was founded on 2004-09-02 and listed on 2019-10-14, with 17,963,290 listed shares. Market capitalisation is about ₩202.4B, small next to the large biotech peers in the data, which range from ₩5.7T to ₩60.1T. Detailed product or segment information is not available in the data provided.

Financial analysis

These figures come from filed financial statements. Revenue grew each year: ₩91.0B (2021), ₩109.7B (2022), ₩120.5B (2023), ₩133.8B (2024) and ₩164.7B (2025), with 2025 growth of 23.1%. Operating income rose from ₩7.8B in 2021 to ₩17.3B in 2025, and net income from ₩6.7B to ₩10.0B.

Over the twelve months to H1 2026, revenue was ₩192.2B, operating income ₩17.5B (9.1% margin) and net income ₩13.6B (7.1% margin). The operating margin was 10.5% in 2025, so the latest figure is somewhat lower. ROE is 12.4%.

On the balance sheet, cash is ₩2.9B, borrowings are ₩64.2B and liabilities to equity are 113.4%. Free cash flow over the period is negative at -₩10.0B. Recent filings include a derivatives trading loss notice (2026-05-15) and a decision to acquire equity-linked bonds (2026-06-17); amounts are not given in the data.

Valuation

The current P/E is 14.8, P/B 1.8, P/S 1.1 and EV/EBITDA 12.4, with a dividend yield of 1.2%. Year-end P/E was 16.4 in 2025, 25.6 in 2024 and 27.2 in 2021, so the current P/E is below its own recent history. P/B of 1.8 compares with 1.5 at year-end 2025 and 1.5 to 2.1 in earlier years.

The listed peers trade at P/E of 14.3 to 84.4 and P/B of 2.5 to 30.4. They are much larger and not directly comparable, but GC WellBeing's P/E and P/B sit at the low end of that group.

The valuation model is a 5-year discounted cash flow at a 6.7% rate, based on figures to H1 2026. It gives a model estimate of ₩13,225 per share in the base case, ₩5,365 in the bear case and ₩27,202 in the bull case, based on the assumptions shown. The base case is above the ₩11,270 share price, but the range is very wide, which shows how sensitive the result is to assumptions. It is not a target or a reason to buy or sell.

Catalysts

  • The half-year report filed on 2026-08-14 and the preliminary earnings filed on 2026-07-31 (later amended) are the latest results to be reflected in the numbers.
  • An investor relations event was filed for 2026-09-14, a possible source of further company information.
  • Foreign investors net bought ₩3.9B over 20 days and foreign ownership rose to 3.3% from 2.7% sixty days earlier.
  • Institutions also net bought ₩1.7B over 20 days, while retail investors net sold ₩5.1B.
  • The June 2026 decision to acquire equity-linked bonds and the April filing on exercise of a conversion right could affect the capital structure, though details are not in the data.

Risks

  • Free cash flow is negative at -₩10.0B, so operations are not currently funding investment.
  • Borrowings of ₩64.2B are far above cash of ₩2.9B, and liabilities are 113.4% of equity.
  • A derivatives trading loss was disclosed on 2026-05-15, and the data does not give its size.
  • The share price is up 39.3% in three months and sits below its 52-week high of ₩15,890 but well above the low of ₩6,680, so it has been volatile.
  • The model range of ₩5,365 to ₩27,202 shows the estimate is highly sensitive to assumptions, and the trailing operating margin of 9.1% is below the 10.5% of 2025.

Closing view

The filed numbers show a company growing revenue and profit, with ROE improving and a P/E below its own recent history. Against that, cash flow is negative, leverage is meaningful and the recent share price rise has been rapid. The model's base estimate of ₩13,225 is above the current price, but the bear-to-bull range is so wide that it offers limited precision. Investors should weigh the earnings trend against the balance sheet and cash flow, and look for further filings on the derivatives loss and the bond holdings.

Model estimate of fair value

Bear
₩5,365
-51%
Base
₩13,225
+22%
Bull
₩27,202
+150%

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 6.7%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 19, 2026InitiationStart of coverage (reader request)GC WellBeing: Rising Revenue and Profit, Negative Free Cash Flow, and a Wide Model Range

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