Dongwha Pharm동화약품

Dongwha Pharm's latest half-year figures show thin profitability, with the share price well below its 52-week high.

Dongwha Pharm is a long-established Korean pharmaceutical company with a small operating margin of 3.7% on trailing revenue of ₩513B for the period to H1 2026. Trailing net income of ₩18B is close to operating income, and the company carries ₩107B of borrowings against ₩22B of cash, with negative free cash flow. The shares closed at ₩5,200, about 31% below the 52-week high of ₩7,560 and up 4.2% over the past month.

What stands out

• Full-year 2025 operating income was only ₩257M on ₩496B of revenue, a 0.1% margin, versus 8.8% in 2022, though net income of ₩8.7B was much higher than operating income.
• Trailing operating margin of 3.7% is above 2025 but still below the 5.2% and 8.8% margins of 2023 and 2022.
• Trailing free cash flow was negative at about -₩2.5B, and liabilities to equity stand at 57.3%.
• The data shows a P/E of 8, P/B of 0.4 and dividend yield of 1.3%, with a DCF base value of ₩4,105, below the current price; the bull case is ₩24,311 and the bear case is listed as 0.
• Foreign ownership rose from 2.9% to 3.5% over 60 days, while retail investors were net sellers of about ₩891M over the last 20 days.

What to watch

• The filings list several amended half-year and quarterly reports in 2026, so check the latest corrected figures before relying on earlier numbers.
• Recent headlines are mostly corporate and personal news, and the data does not include guidance or the reasons for the 2025 margin drop.
• Watch the next quarterly report and whether borrowings and negative free cash flow continue.