DAE HWA Pharm대화제약

DAE HWA Pharm's shares have fallen sharply over the past year, while its profit margins remain thin and debt is high.

DAE HWA Pharm is a small South Korean drugmaker with trailing revenue of about ₩149B and operating income of about ₩5.5B for the first half of 2026 on a trailing basis. Its shares closed at ₩9,930 on 23 October 2026, down 35.9% over one year and about 60% below the 52-week high of ₩24,900. Liabilities are 157% of equity and borrowings are about ₩102B, against cash of about ₩2.1B.

What stands out

• Trailing operating margin is 3.7% and net margin is 3.0%, with ROE at 5.8%; 2025 profit was much lower than 2024 at ₩1.65B net income versus ₩0.53B in 2024 and a 2025 revenue decline of 4.2%.
• Free cash flow on a trailing basis is negative at about -₩0.34B, so operations are not yet covering the company's spending on a cash basis.
• Three filings in September 2026 report sales or supply contracts terminated, and one amended notice followed; the data does not explain the contracts or their size.
• A notice of planned designation as an unfaithful disclosure company was filed on 12 October 2026, citing one disclosure reversal and one disclosure failure.
• Recent news headlines are limited; one Edaily piece on 13 October 2026 said the stock fell in double digits amid a sector slump, and one headline in the data is incomplete and unclear.
• Foreign ownership rose from 0.4% to 1.2% over 60 days, while retail investors were net sellers of about ₩1.06B over the last 20 days.

What to watch

• Whether the company is formally designated as an unfaithful disclosure company and what follow-up action the exchange takes.
• Details of the terminated supply contracts and their effect on revenue in upcoming filings.
• The next reported results and whether margins and free cash flow improve from current levels; the data does not include a dividend or forecast beyond the 0% dividend yield shown.