Cellbion: Loss-Making Operations, a Profit-Boosted TTM Net Income, and a Share Price Well Above the Model Estimate

Thesis

The data supports a picture of a small biotech whose core operations lose money: TTM revenue is ₩2.1B against an operating loss of ₩9.6B, an operating margin of -447.2%. Yet TTM net income is positive at ₩8.7B, giving a net margin of 406.5% and ROE of 26.5%. Because operating income is deeply negative, that net profit appears to come from items outside operations. The data does not say what those items are, so the P/E of 18.1 should be read with caution. The data also does not show product, pipeline or guidance details. Filings in April 2026 show a rights offering, a convertible bond and a convertible preferred share issuance, which points to ongoing external funding needs. Foreign ownership fell from 3.8% to 2.4% over 60 days, and the stock has dropped 13.3% in a month. On the other side, short balance is low at 0.6%, and retail and institutions were net buyers over 20 days.

Business overview

Cellbion is a KOSDAQ-listed company in the Biotech & Pharma sector, founded on 2010-07-21 and listed on 2024-10-16. It has 12,905,251 listed shares and a market capitalization of about ₩158.1B. Revenue was ₩2.3B in 2024 and ₩1.9B in 2025, a decline of 15.1%. Operating losses were ₩7.1B in 2024 and ₩8.2B in 2025. The CEO is listed as 김권. No recent news headlines are available in the data.

Financial analysis

These figures come from filed financial statements. In 2025, revenue was ₩1.9B, operating loss ₩8.2B and net loss ₩7.6B, with ROE of -28.9%. In 2024, the net loss was ₩7.3B and ROE -24.6%. For the trailing twelve months to H1 2026, revenue was ₩2.1B, operating loss ₩9.6B and net income ₩8.7B. Liabilities to equity were 130.6%. Cash was ₩1.7B against borrowings of ₩7.0B. Free cash flow was -₩7.7B, so operations and investment consumed more cash than the company holds. The swing from net loss to net profit while operations deteriorated is not explained in the data.

Valuation

At the current price, P/E is 18.1, P/B 4.4 and P/S 73.7. EV/EBITDA is not available and the dividend yield is 0.0%. Enterprise value is about ₩97.5B. Year-end P/B was 5.1 in 2024 and 13.4 in 2025, so the current P/B is lower than at those points, while year-end P/E was not available for either year. Among peers, P/E ranges from 14.6 (SK biopharmaceuticals) to 83.3 (Alteogen), and P/B from 2.5 (Celltrion) to 30.0 (Alteogen). Cellbion's multiples sit inside those ranges, but peers are far larger. The valuation model, a 5-year discounted cash flow at a 7.4% rate, gives a model estimate based on the assumptions shown of ₩4,228 per share in the base case, with ₩4,319 for the bear case and ₩4,097 for the bull case. The bear case is higher than the bull case, which is an oddity of the model output. All three are well below the ₩12,250 share price, which implies the market is pricing in much more than the model assumptions. This is not a target or a reason to buy or sell.

Catalysts

• The 2026-09-29 filing of a major management matter could matter, though the data does not give its content.
• The H1 2026 report filed on 2026-08-13 is the latest full set of results and shows the swing to positive trailing net income.
• The April 2026 rights offering, convertible bond and convertible preferred share issuances were completed and affect funding and share count.
• Foreign ownership fell from 3.8% to 2.4% in 60 days, and a change in that flow trend could affect trading.
• Retail net buying of ₩957.1M over 20 days contrasts with foreign net selling of ₩1.3B.

Risks

• Operating losses have widened from ₩7.1B in 2024 to ₩8.2B in 2025 and ₩9.6B on a trailing basis, while revenue is small and fell 15.1% in 2025.
• Cash of ₩1.7B is small compared with borrowings of ₩7.0B and free cash flow of -₩7.7B, suggesting continued reliance on financing.
• Convertible bonds and convertible preferred shares may dilute existing shareholders if converted.
• Trailing net income appears driven by non-operating items, so the P/E and ROE may not reflect core earnings.
• The share price is about 190% above the base-case model estimate and is 71.0% below its 52-week high, showing large price swings.

Closing view

The data shows a small, loss-making biotech whose core operations have not improved and which has recently raised capital through several instruments. Trailing net profit and ROE look strong but are not supported by operating results, and their source is not given. The share price is far above the model estimate based on the assumptions shown, and recent flows show foreign selling offset by domestic buying. Investors should weigh the funding needs, dilution potential and unexplained earnings against the information that is not available in the data, such as pipeline status and the content of the latest filings.

Model estimate of fair value

Bear

₩4,319

-62%

Base

₩4,228

-63%

Bull

₩4,097

-64%

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 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Major management matter relevant to investorsSep 29, 2026
• Half-year report (Jun 2026)Aug 13, 2026
• Major management matter relevant to investorsJun 30, 2026
• Insider shareholding reportMay 15, 2026
• Quarterly report (Mar 2026)May 14, 2026
• Results of Securities Issuance (Voluntary Disclosure) (Third-Party Allotment – Convertible Preferred Shares)Apr 23, 2026
• Securities Issuance Results (Voluntary Disclosure) (3rd Convertible Bond Issue)Apr 23, 2026
• Amended: Rights offering (paid-in capital increase) decisionApr 22, 2026
• Amended: Convertible bond issue decisionApr 22, 2026
• Rights offering (paid-in capital increase) decisionApr 15, 2026
• Convertible bond issue decisionApr 15, 2026
• Annual general meeting resultsMar 31, 2026
• Daily prices up to 2026-10-22
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 23, 2026InitiationStart of coverage (reader request)Cellbion: Loss-Making Operations, a Profit-Boosted TTM Net Income, and a Share Price Well Above the Model Estimate