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IL Dong Pharmaceutical · 249420 · Biotech & Pharma

IL Dong Pharmaceutical: Returns to Profit After Years of Losses, While the Share Price Falls 38.4% in a Year

Why this report

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IL Dong Pharmaceutical has moved from several years of losses to positive operating and net income, with trailing net income of ₩43.6B on revenue of ₩582.3B. The share price closed at ₩12,990 on 2026-10-22, down 38.4% over one year, and foreign ownership fell from 10.1% to 5.8% in 60 days.

Written Oct 23, 2026 · Data as of Oct 22, 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 clear improvement in profitability. Operating margin rose from -11.5% in 2022 to 4.4% on a trailing basis, and net income turned positive in 2025 after losses from 2021 to 2024. Trailing return on equity is 20.8%.

The data also shows caution. Revenue fell 7.8% in 2025 and has not grown meaningfully since 2022. Trailing net income (₩43.6B) is well above operating income (₩25.9B), so part of the profit comes from outside core operations, and the data does not say what drove it. The share price is 71.2% above its 52-week low of ₩11,250 but far below its high of ₩45,050. A merger completion report was filed on 2026-06-17, and its effect on the numbers is not detailed in the data.

Business overview

IL Dong Pharmaceutical is listed on KOSPI in the Biotech & Pharma sector. It was founded on 2016-08-01 and listed on 2016-08-31, with 31,638,252 shares outstanding and a market capitalization of about ₩411.0B. It is led by co-CEOs Yoon Woong-seop and Lee Jae-joon. Revenue has stayed in a range of ₩560B to ₩638B since 2021. The most recent news item in the data is a 2026-10-14 Edaily report on the launch of an active vitamin combination product called Superamin, aimed at the pharmacy vitamin market.

Financial analysis

These figures come from filed financial statements. Revenue was ₩560.1B in 2021, ₩637.7B in 2022, ₩600.8B in 2023, ₩614.9B in 2024 and ₩566.9B in 2025. Operating income went from a loss of ₩73.5B in 2022 and ₩53.9B in 2023 to profits of ₩13.1B in 2024 and ₩19.5B in 2025. Net income was a ₩4.6B loss in 2024 and a ₩27.7B profit in 2025.

On a trailing basis to H1 2026, revenue is ₩582.3B, operating income ₩25.9B (4.4% margin) and net income ₩43.6B (7.5% margin). Liabilities to equity are 124.6%. Cash is ₩53.4B against borrowings of ₩116.2B. Free cash flow is ₩22.4B.

Valuation

The stock trades at a P/E of 9.4, P/B of 1.6 and P/S of 0.7, with a dividend yield of 1.5%. Enterprise value is ₩473.8B; EV/EBITDA is not available. At the end of 2025 the P/E was 44 and the P/B 4.9, so both multiples are well below that level. P/B was 2.3 at the end of 2024 and 7.0 at the end of 2021.

Among the listed peers, P/E ranges from 14.6 (SK biopharmaceuticals) to 83.3 (Alteogen), and P/B from 2.5 (Celltrion) to 30.0 (Alteogen). IL Dong's multiples are below all five peers shown. The peers are much larger companies, so this comparison has limits. The valuation model produced no fair value estimate (it is null), so there is no model estimate to compare with the ₩12,990 share price.

Catalysts

  • The 2026-09-30 filing on the acquisition of shares in another company could change the group's structure, though the data gives no details.
  • The merger completion report filed on 2026-06-17 may start to show up in future reported results.
  • The next quarterly results, following the H1 2026 report filed on 2026-08-14, will show whether profitability keeps improving.
  • The October 2026 launch of the Superamin vitamin product may add to revenue, though the data gives no sales figures.
  • Investor flows over 20 days show foreign net buying of about ₩4.4B and retail net selling of about ₩4.4B, which could signal a change in who holds the stock.

Risks

  • Revenue fell 7.8% in 2025 and has shown no sustained growth since 2022.
  • Operating margin of 4.4% is thin, and net income depends partly on items outside operations.
  • Borrowings of ₩116.2B are more than double cash of ₩53.4B, and liabilities are 124.6% of equity.
  • Foreign ownership fell from 10.1% to 5.8% in 60 days, and the share price is down 38.4% over one year.
  • The company recorded losses in each year from 2021 to 2023 and again in 2024 at net level, so the recent profit record is short.

Closing view

The data shows a company that has recovered from deep losses to modest operating profit, with a trailing ROE of 20.8% and multiples that are lower than its own recent history and its peers. Against that, revenue is flat to falling, margins are thin, debt exceeds cash, and the share price and foreign ownership have both declined sharply. No model estimate is available. The evidence is mixed, and the key unknowns are how the merger and the share acquisition will affect future results and whether the recent profit improvement lasts.

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 23, 2026InitiationStart of coverage (reader request)IL Dong Pharmaceutical: Returns to Profit After Years of Losses, While the Share Price Falls 38.4% in 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