Withus Pharmaceutical: Modest Profits, Low Multiples and a Wide Model Range

Thesis

The data supports a picture of a small KOSDAQ drugmaker that has grown sales but earns thin margins. Revenue rose from ₩57.4B in 2021 to ₩106.4B in 2025, while operating margin slipped from 8.5% to 5.3% over the same period and to 3.6% on the trailing figure. Return on equity is 5.7%, so the P/B below 1.0 can be read as the market pricing modest returns on capital. The balance sheet looks manageable, with cash of ₩18.9B against borrowings of ₩18.2B. The data does not explain why margins have narrowed, and it gives no guidance, so the direction of earnings cannot be judged from it. Filings show a production halt on 2026-01-08 and a resumption on 2026-02-20, but the data does not give the financial effect. The model estimate is sensitive to assumptions, as the gap between its bear and bull cases shows.

Business overview

Withus Pharmaceutical is listed on KOSDAQ in the Biotech & Pharma sector. It was founded on 2004-08-19 and listed on 2020-07-03, with 13,199,680 shares outstanding. Market capitalisation is ₩87.6B and enterprise value is ₩85.9B. The data gives no product or segment breakdown. Annual revenue grew 28.2% in 2024 and 23.9% in 2023, then slowed to 3.6% in 2025. Foreign ownership is 2.1%, up from 1.3% sixty days ago, and the short balance is 0.6%.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩111.7B, operating income ₩4.1B (3.6% margin) and net income ₩5.6B (5.0% margin). Net income exceeds operating income, so non-operating items appear to contribute, though the data does not say which. For 2025, revenue was ₩106.4B, operating income ₩5.7B (5.3%) and net income ₩5.0B. The 2023 peak was operating income of ₩7.9B (9.9% margin) and net income of ₩8.0B. ROE was 5.7% on a trailing basis versus 9.2% in 2023. Liabilities to equity are 38.6%. Cash is ₩18.9B, borrowings ₩18.2B and trailing free cash flow ₩3.8B. The dividend yield is 0.0%.

Valuation

At ₩6,640 the trailing P/E is 15.5, P/B 0.8 and P/S 0.8. Year-end P/E was 22.9 in 2025, 19.4 in 2024 and 16.1 in 2023, and year-end P/B ranged from 1.0 to 1.7, so current multiples are below the company's own recent history. The listed peers are far larger and trade at P/Es of 14.6 to 83.3 and P/Bs of 2.5 to 30.0, so they are only a loose comparison. EV/EBITDA is not available. The valuation model uses a 5-year discounted cash flow at a 7.5% rate on trailing data. It gives a model estimate based on the assumptions shown of ₩7,419 per share in the base case, ₩3,364 in the bear case and ₩14,668 in the bull case. The share price is below the base case and within the bear-to-bull range. This is not a target, and the wide range shows how much depends on the assumptions. The 52-week range is ₩5,910 to ₩11,950, and the price is down 6.5% over one month, up 6.2% over three months and down 1.9% over one year.

Catalysts

• The half-year report filed on 2026-08-14 is the latest update on earnings, and the next quarterly report will show whether margins stabilise.
• A share cancellation decision was filed on 2026-03-06, which could matter for per-share figures, though the data gives no size.
• Production resumed after a halt, per the 2026-02-20 voluntary disclosure, and the data does not show its effect on sales.
• Foreign investors net bought about ₩1.1B over 20 days and foreign ownership rose to 2.1%, while retail investors were net sellers.
• The only recent news headline is about a sports event in Uiseong and carries no financial information.

Risks

• Operating margin has fallen from 9.9% in 2023 to 3.6% on a trailing basis, and the data does not explain the cause.
• Revenue growth slowed to 3.6% in 2025 after two years of growth above 20%.
• The production halt in early 2026 shows operational disruption can occur, and its financial impact is not disclosed in the data.
• The model range from ₩3,364 to ₩14,668 per share shows high uncertainty in the estimate.
• Net income is above operating income, so earnings may depend on non-operating items, and the stock pays no dividend.

Closing view

The data shows a small company with growing sales but thinner margins, modest returns and low multiples against its own history. A P/B of 0.8 and a base-case model estimate above the current price are set against falling profitability, slower growth and a very wide bear-to-bull range. The data lacks guidance, a segment breakdown and an explanation of the margin decline, so the evidence is mixed and does not settle the question either way.

Model estimate of fair value

Bear

₩3,364

-47%

Base

₩7,419

+16%

Bull

₩14,668

+129%

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 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Half-year report (Jun 2026)Aug 14, 2026
• Quarterly report (Mar 2026)May 15, 2026
• Annual general meeting resultsMar 26, 2026
• Audit report submittedMar 18, 2026
• Annual report (Dec 2025)Mar 18, 2026
• Notice of shareholders' meetingMar 11, 2026
• Share cancellation decisionMar 6, 2026
• Shareholders' meeting calledMar 6, 2026
• Resumption of Production (Voluntary Disclosure)Feb 20, 2026
• Production HaltJan 8, 2026
• Determination of Shareholder Register Closure Period or Record DateDec 16, 2025
• Quarterly report (Sep 2025)Nov 14, 2025
• Withus Pharmaceutical 2026 Folk Ssireum Uiseong Garlic Championship Tournament Opens in Uiseong, Gyeongbuk on the 31stOct 23, 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)Withus Pharmaceutical: Modest Profits, Low Multiples and a Wide Model Range