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Biobijou · 489460 · Chemicals

Biobijou: Profitable but Richly Priced Against a Model Estimate After a Strong 3-Month Rally

Why this report

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

Biobijou, a KOSDAQ-listed chemicals company, closed at ₩12,330 on 2026-10-23, up 38.1% over three months but down 20.1% over one year. The valuation model's base estimate of ₩4,059 per share is well below the market price, while trailing profit margins are high.

Written Oct 24, 2026 · Data as of Oct 23, 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 small, profitable company with a trailing operating margin of 17.5% and net margin of 22.8%. Trailing net income of ₩6.5B is above operating income of ₩5.0B, so part of the profit comes from items below the operating line, and the data does not explain which. The share price has recovered strongly over three months, but remains below the 52-week high of ₩16,090 and above the low of ₩5,230.

The data does not support a clear view on balance sheet strength, since cash, borrowings, ROE and the debt ratio are not available for the latest period. Recent filings show a share buyback, a share cancellation and a first convertible bond issue within a few months, which point in different directions for existing shareholders. Foreign and institutional investors were net sellers over the last 20 days, and foreign ownership is low at 0.4%.

Business overview

Biobijou is listed on KOSDAQ in the chemicals sector. It was founded on 2018-07-12 and listed on 2025-05-20, so the public track record is short. It has 14,753,287 listed shares and a market capitalisation of about ₩181.9B. The CEO is listed as Yang Jun-ho. One news headline from Edaily on 2026-10-18 quotes the CEO saying a product called Celivion is expected to enter Japan in the first half of next year, with terms still being finalised with a local partner. The data gives no further detail on products or segments.

Financial analysis

These figures come from filed financial statements. Full-year 2025 revenue was ₩28.5B, operating income ₩4.2B (a 14.8% margin) and net income ₩4.2B. ROE for 2025 was 6.7%. Revenue growth for 2025 is not available because there is no prior-year figure in the data.

For the trailing twelve months to H1 2026, revenue was ₩28.6B, operating income ₩5.0B (17.5% margin) and net income ₩6.5B (22.8% margin). Revenue is about flat against 2025, while operating income and margin are higher. Free cash flow for the trailing period was only ₩68M, much lower than reported profit. Cash, borrowings, the liabilities-to-equity ratio and trailing ROE are not available.

Valuation

At the current price the trailing P/E is 27.9 and price-to-sales is 6.4. The dividend yield is 0.8%. P/B and EV/EBITDA are not available. At the end of 2025 the P/E was 47.9 and P/B was 3.2, so the P/E is lower now than then, mainly because trailing earnings have risen.

Peer data is mixed and of limited use for comparison. LG Chem, Hanwha Solutions, Hanwha, SKC and KCC are all much larger companies. Their P/B ratios range from 0.3 to 2.0, and P/E is available only for Hanwha (6.2) and KCC (0.9). Biobijou's P/E of 27.9 is well above those two.

The valuation model uses a 5-year discounted cash flow at a 7.4% rate, based on trailing figures to H1 2026. It gives a model estimate based on the assumptions shown of ₩4,059 per share in the base case, ₩2,677 in the bear case and ₩6,375 in the bull case. All three are below the ₩12,330 share price. This indicates that the market is pricing in much stronger cash flows than the model's assumptions, and the weak trailing free cash flow weighs on the model. It is not a target or a reason to buy or sell.

Catalysts

  • The CEO said in an Edaily interview on 2026-10-18 that Celivion is expected to enter Japan in the first half of next year, with terms being finalised with a local partner.
  • The first convertible bond issue was completed, with the issuance results filed on 2026-09-18 after the decision on 2026-09-10, which may change the funding and share count picture.
  • The share buyback decision (2026-06-01), the acquisition results (2026-07-01) and the share cancellation decision (2026-07-02) are a sequence of shareholder return steps.
  • A corporate value-up plan was filed on 2026-04-17, and an investor relations event was held on 2026-05-20.
  • A 5%+ holding report was filed on 2026-10-02, which shows a change in a large holder's position.

Risks

  • The share price is far above the model's base, bear and bull estimates, so the market price depends on assumptions much more optimistic than the model's.
  • Trailing free cash flow of ₩68M is small compared with net income of ₩6.5B, so reported profit is not turning into cash.
  • Net income exceeds operating income, so part of earnings comes from non-operating items that the data does not explain.
  • The convertible bond issue could dilute existing shareholders if converted, and the data does not give its size or terms.
  • Foreign and institutional investors were net sellers over the last 20 days, foreign ownership fell from 0.6% to 0.4% in 60 days, and the one-year return is -20.1%.

Closing view

The data shows a small, profitable company with improving trailing margins, a recent buyback and cancellation, and a possible Japan launch mentioned by management. Against this, revenue is flat, cash conversion is weak, balance sheet data is missing, and a convertible bond adds a potential dilution question. The share price sits well above the model's range of ₩2,677 to ₩6,375, so the market is assuming more than the model does. The evidence is mixed, and the key unknowns are the size and terms of the convertible bond and whether the overseas expansion adds to revenue.

Model estimate of fair value

Bear
₩2,677
-80%
Base
₩4,059
-69%
Bull
₩6,375
-52%

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

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)Biobijou: Profitable but Richly Priced Against a Model Estimate After a Strong 3-Month Rally

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