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JONBUR Research · Initiation

L&C Bio · 290650 · Biotech & Pharma

L&C Bio: Operating Profit Positive but Large Net Loss, With Rights Offering and Bonus Share Filings in Focus

Why this report

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

L&C Bio (KOSDAQ: 290650) closed at ₩56,900 on 2026-10-12 for a market cap of about ₩1.29T, up 19.9% over one month but down 18.1% over three months. Filed financials show a TTM operating profit of ₩19.4B alongside a net loss of ₩149.4B, and the company filed rights offering and bonus share documents on the data date.

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 a growing operating business: TTM revenue is ₩116.3B and TTM operating margin is 16.7%, up from 5.2% in 2025. It does not support a clean earnings picture, because TTM net income is -₩149.4B and ROE is -49.1%, so the gap between operating and net results is large and the data does not explain it.

Capital raising is a live issue. Filings dated 2026-10-12 include the final determination of the issue price for a rights offering, an amended prospectus, terms set for the securities registration statement and an amended bonus share issue decision. The data does not give the offering size, price or use of proceeds, so the effect on shareholders cannot be assessed here.

Investor flow, foreign ownership and short balance data are not available, so positioning cannot be judged.

Business overview

L&C Bio is listed on KOSDAQ in the Biotech & Pharma sector. It was founded on 2011-08-02 and listed on 2018-11-01. It has 22,684,891 listed shares and is led by co-CEOs 이환철 and 이재호. Revenue rose from ₩45.7B in 2021 to ₩85.5B in 2025, with annual growth of 15.1% in 2022, 31.0% in 2023, 4.7% in 2024 and 18.6% in 2025. The data does not describe products or segments.

Financial analysis

The figures come from filed financial statements (DART). Revenue was ₩85.5B in 2025 and ₩116.3B on a TTM basis to H1 2026. Operating income was ₩4.4B in 2025 (5.2% margin), versus ₩13.2B in 2021 (28.8% margin) and ₩7.7B in 2023 (11.3%). TTM operating income is ₩19.4B (16.7% margin).

Net income has been volatile: ₩13.8B in 2021, ₩4.5B in 2022, ₩48.4B in 2023, ₩141.1B in 2024, -₩138.2B in 2025 and -₩149.4B TTM (net margin -128.5%). ROE moved from 65.4% in 2024 to -57.3% in 2025 and -49.1% TTM. The data does not state the causes.

On the balance sheet, liabilities to equity is 42.4%, cash is ₩36.4B and borrowings are ₩24.4B. TTM free cash flow is -₩3.9B.

Valuation

Price-to-book is 4.0 now (7.0 at the end of 2025). Price-to-sales is 11.1, enterprise value is ₩1.28T, and the dividend yield is 0.1%. P/E and EV/EBITDA are not available because of the net loss.

Peers in the data: Samsung Biologics P/B 10.2 (P/E 43.1), Celltrion P/B 2.2 (P/E 24.5), Alteogen P/B 23.0 (P/E 63.9), Hanmi Pharm P/B 4.3 (P/E 28.0), HLB P/B 16.9 (no P/E). L&C Bio's P/B sits within this range, though these peers are much larger.

The valuation model estimate is not available (null), so no model estimate per share can be compared with the ₩56,900 price. The 52-week range is ₩42,150 to ₩125,000.

Catalysts

  • The rights offering issue price was finalized on 2026-10-12, with the prospectus amended and the registration statement terms set.
  • An amended bonus share issue decision was filed on 2026-10-12, though details are not in the data.
  • A news headline dated 2026-10-13 reports the shares jumped over 10% in after-market trading.
  • Several insider shareholding reports (2026-09-23 and 2026-09-30) and 5%+ holding reports (2026-09-18 and 2026-09-30) point to changes in ownership.
  • Continued operating margin improvement, from 5.2% in 2025 to 16.7% TTM, would matter if sustained.

Risks

  • Net loss of ₩149.4B TTM and ROE of -49.1% show that reported profit is far weaker than operating profit.
  • The rights offering could dilute existing holders, and its size and purpose are not in the data.
  • Free cash flow is negative at -₩3.9B against ₩24.4B of borrowings and ₩36.4B of cash.
  • The share price is volatile, with a 52-week range of ₩42,150 to ₩125,000 and a -18.1% three-month move.
  • Net income swung from ₩141.1B to -₩138.2B in a year, which makes earnings hard to interpret, and investor flow and short data are unavailable.

Closing view

The data shows a business with rising revenue and a recovering operating margin, set against large net losses, negative free cash flow and a pending rights offering whose terms are not given. P/B of 4.0 is within the peer range, but no model estimate is available and P/E cannot be computed. The evidence is mixed and leaves key questions open, notably the source of the net loss and the scale of the capital raise, and this report makes no recommendation.

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)L&C Bio: Operating Profit Positive but Large Net Loss, With Rights Offering and Bonus Share Filings in Focus

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