PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,700 per share · Prices as of the 2026-10-02 close
Donga Socio Holdings posted its first-ever quarterly revenue above KRW 400 billion in Q2 2026 while preparing to absorb its wholly owned subsidiary Donga Pharm on October 1, transforming from a pure holding company into an operating holding company.
Q2 2026 consolidated revenue reached KRW 412.4 billion (+18.9% YoY) with operating profit of KRW 39.0 billion (+38.3% YoY), the first time quarterly revenue topped KRW 400 billion.
In Q4 2025, despite a positive operating profit of KRW 16.0 billion, net income attributable to owners swung to a loss of KRW -11.47 billion, underscoring earnings volatility below the operating line.
The board resolved on July 23, 2026 to absorb its wholly owned subsidiary Donga Pharm, with the merger effective October 1 and the surviving entity to be renamed 'Donga Pharm.'
Bio-CMO subsidiary Btzen saw sharp declines in Q2 revenue and operating profit as key customer order volumes were concentrated in the second half of the year.
SK Securities and Sangsangin Securities issued buy ratings with a KRW 150,000 target price in reports published between May and August 2026, though Sangsangin's target was cut from a prior KRW 170,000.
Donga Socio Holdings, founded in 1949, is the holding company of the Donga Socio Group and oversees 11 subsidiaries spanning over-the-counter drugs, biosimilars, logistics, and packaging/bottled water.
Its core subsidiary Donga Pharm is a consumer healthcare company selling the energy drink Bacchus, over-the-counter (OTC) products, and health/functional foods (HTC); in 2025 Donga Pharm's revenue of KRW 726.3 billion included KRW 270.0 billion from the Bacchus segment and KRW 223.9 billion from OTC.
Listed affiliate Donga ST handles ethical drugs and biosimilars, including the Stelara biosimilar 'Imuldosa (DMB-3115)' co-developed with Japan's Meiji Seika Pharma and licensed out to Intas.
Imuldosa has secured marketing approvals in more than 19 countries including the United States, Europe, Canada, and the Middle East/North Africa region, expanding its global commercialization.
Bio-CMO subsidiary Btzen (formerly STGenBio) manufactures Imuldosa and growth hormone Growtropin under contract, with most of its order volume concentrated with affiliate Donga ST.
Logistics subsidiary Yongma Logistics has grown steadily by securing new shipping clients across freight, parcel, and warehousing, while listed affiliate ST Pharm operates as an active pharmaceutical ingredient CDMO within the group.
On the competitive front, the biosimilar business competes with Celltrion and Samsung Bioepis for the Stelara market, while the consumer healthcare business shares the domestic OTC and functional-food markets with other major Korean pharmaceutical companies.
In July 2026 the board resolved to absorb Donga Pharm and convert from a pure holding company into an operating holding company, a move the company said is intended to resolve the holding-company discount stemming from overlapping listings of affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩346.9B | ₩28.2B | 8.1% |
| 2025Q3 | ₩382.6B | ₩33.3B | 8.7% |
| 2025Q4 | ₩371.9B | ₩16B | 4.3% |
| 2026Q1 | ₩351B | ₩19.1B | 5.5% |
| 2026Q2 | ₩412.4B | ₩39B | 9.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1T | ₩37.9B | ₩11.2B | 3.7% | 1.1% | 73.4% |
| 2023 | ₩1.1T | ₩76.9B | ₩58B | 6.8% | 5.7% | 90.5% |
| 2024 | ₩1.3T | ₩82.1B | ₩58B | 6.2% | 5.5% | 90.8% |
| 2025 | ₩1.4T | ₩97.8B | ₩90.9B | 6.8% | 8.0% | 80.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual results show a clear pattern of recovery and growth.
Revenue rose for four consecutive years, from KRW 1,014.8 billion in 2022 to KRW 1,132.0 billion in 2023, KRW 1,333.2 billion in 2024, and KRW 1,429.8 billion in 2025, while operating profit expanded from KRW 37.8 billion to KRW 97.8 billion over the same period, lifting the operating margin from 3.7% to 6.8%.
Net income attributable to owners, which stood at only KRW 11.2 billion in 2022, climbed sharply to KRW 58.0 billion in 2024 and KRW 90.9 billion in 2025, marking a notable earnings recovery.
On a quarterly basis, net income attributable to owners peaked at KRW 47.0 billion in Q3 2025, but in Q4 2025 it swung to a loss of KRW -11.47 billion even though operating profit remained positive at KRW 16.0 billion, highlighting earnings volatility.
This reflected a base effect from a one-off refund at Donga Pharm and one-off costs at Btzen that weighed on operating profit, compounded by additional loss items below the operating line.
Net income attributable to owners recovered to KRW 20.6 billion in Q1 2026, and Q2 2026 revenue reached KRW 412.4 billion with operating profit of KRW 39.0 billion and net income attributable to owners of KRW 29.1 billion, marking the company's first quarter above KRW 400 billion in revenue.
The Q2 improvement was driven by strong sales in Donga Pharm's Bacchus and OTC segments and new client wins at Yongma Logistics, while Btzen showed a divergent pattern as revenue and operating profit fell 45.2% and 90.0%, respectively, due to customer order timing shifting to the second half.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative net income attributable to owners reached KRW 85.25 billion, suggesting a gradually broadening earnings base on an annual view.
Korea's consumer healthcare market continues to grow steadily, centered on OTC drugs and health/functional foods, with long-running brands like Bacchus serving as a stable cash cow.
The biosimilar market is entering a phase of accelerated global expansion for Korean firms as patents on original blockbuster drugs expire; for the Stelara biosimilar market specifically, three Korean companies—Celltrion, Samsung Bioepis, and Donga ST (Donga Socio Group)—compete head-to-head, having each secured US and European approvals.
The original Stelara product generated roughly $21.5 billion in cumulative sales as of 2024 according to IQVIA, a blockbuster scale that leaves substantial room for market realignment as biosimilars enter.
The biopharmaceutical CDMO market is projected to grow at a compound annual rate of 14.3% through 2029, supported by expanding cell and gene therapy research and development. The logistics segment continues to post modest growth by winning new shipping clients even amid economic slowdown and weaker consumption.
Across the pharmaceutical industry, drug price cuts remain an ongoing policy theme, but biologics are relatively insulated from such pricing pressure, prompting many companies to expand their biologics exposure.
The Donga Socio Group holds a first-mover advantage from having begun biosimilar development as early as 2013 under ownership direction, though the segment's contribution to overall revenue remains modest at this stage.
The most significant structural event ahead is the absorption merger with Donga Pharm. On July 23, 2026, the board resolved to absorb its wholly owned subsidiary Donga Pharm through a small-scale merger without issuing new shares, with the merger effective date set for October 1.
Upon completion, the surviving entity's name will change from Donga Socio Holdings to 'Donga Pharm'—the name of the dissolving entity—a choice reportedly intended to preserve the brand value associated with Bacchus and other products.
Because it is a small-scale merger, the company has stated that shareholder composition and ownership ratios will remain unchanged afterward.
The company cited three merger objectives: securing investment funds for new growth engines as an operating holding company, simplifying governance to speed up decision-making, and resolving the holding-company discount arising from overlapping listings of affiliates.
Ahead of the merger, an extraordinary general meeting is planned to approve articles-of-incorporation amendments covering the company name, business purpose, and disposal of shares in spun-off subsidiaries.
On the business side, the company has outlined plans to diversify e-commerce channels, expand into global retail chains, and broaden brand collaborations at Donga Pharm to raise the share of overseas sales, while additional country approvals for Imuldosa and the pace of Btzen's order recovery in the second half remain near-term watch points.
The shares tend to trade at a discount to net asset value rather than at a premium, reflecting a valuation posture skewed toward the discount side of the book-value relationship.
Given that earnings have moved from a loss to a clear recovery trend over the past several years, market re-rating appears to have proceeded more slowly than the pace of profit improvement.
On the sell side, Sangsangin Securities set a target price of KRW 150,000 in its August 2026 report, down from KRW 170,000 set in April of the same year, while SK Securities issued a KRW 150,000 target in its May 2026 report.
Sangsangin also noted that the broader analyst consensus target has trended more conservative over the preceding six months. Dividend payments have continued on an annual cash basis.
Whether the conversion to an operating holding company through the Donga Pharm merger can resolve the holding-company discount tied to overlapping affiliate listings remains something the market will need to assess once the merger is complete.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Q2 2026 consolidated revenue hit KRW 412.4 billion, the first time quarterly revenue exceeded KRW 400 billion, with operating profit up 38.3%. Growth was broadly driven by Donga Pharm's Bacchus and OTC segments and new client wins at Yongma Logistics. On a cumulative first-half basis, revenue rose 13.0% and operating profit 19.8%, extending the growth trend.
The Stelara biosimilar Imuldosa has secured marketing approvals in more than 19 countries including the US, Europe, Canada, and the Middle East/North Africa region, broadening its commercial footprint.
Under the licensing agreement with Intas, additional milestone and royalty income is expected as approvals and sales expand. In 2025, export revenue from the company's two biosimilars rose 84.6% year over year to KRW 44.3 billion.
By absorbing Donga Pharm and converting into an operating holding company, the group is attempting to address the holding-company discount stemming from overlapping affiliate listings. As a small-scale merger with no new share issuance, existing shareholders' ownership ratios remain unchanged. The company has stated it plans to deploy the combined capital toward new growth investments.
Btzen's revenue and operating profit fell 45.2% and 90.0%, respectively, in Q2 2026, as major customer order schedules were concentrated in the second half of the year. A significant portion of its order volume is concentrated with affiliate Donga ST, raising the need for customer diversification. This seasonality makes quarterly earnings harder to predict.
In Q4 2025, despite a positive operating profit of KRW 16.0 billion, net income attributable to owners posted a loss of KRW -11.47 billion.
A base effect from a one-off refund at Donga Pharm and one-off costs at Btzen weighed on operating profit, but additional loss factors beyond these appear to have been reflected as well. This volatility makes it difficult to read quarterly results as a simple trend.
Sangsangin Securities cut its target price from KRW 170,000 to KRW 150,000 in its August 2026 report, and noted that the broader analyst consensus target has also shifted more conservative over the past six months.
This suggests the market has become more cautious in assigning valuation even as earnings grow, partly reflecting merger-related uncertainty.
The absorption merger with Donga Pharm is scheduled for October 1, with an extraordinary general meeting still required to approve articles-of-incorporation changes.
In 2013, when the pharmaceutical business was spun off, the National Pension Service voted against taking the Bacchus unit private, so shareholder reaction to further governance changes is worth monitoring. Whether the post-merger name change and related procedures proceed as planned remains to be seen.
The Stelara biosimilar market includes domestic competitors such as Celltrion and Samsung Bioepis, raising the risk of intensifying price and market-share competition. Because commercialization runs through Intas, the timing of revenue and royalty recognition depends on the partner's sales strategy. Heightened competition could affect the growth pace of milestone and royalty income.
In 2025, Donga Pharm's operating profit growth of 2.0% lagged revenue growth of 7.0%, driven by higher raw material costs and a rising cost ratio tied to foreign-exchange movements. Continued cost pressure on consumer healthcare products could constrain the pace of margin improvement. The logistics segment also faces the ongoing challenge of securing profitability amid economic slowdown.
An extraordinary general meeting for the Donga Pharm merger is expected to be held; whether articles-of-incorporation amendments covering the company name and business purpose are approved should be confirmed.
The scheduled merger effective date, when the surviving entity's name is set to change to 'Donga Pharm' and the operating holding company structure is to formally launch.
Whether Btzen's order volume recovers in the second half and whether growth continues at Donga Pharm and Yongma Logistics should be checked.
It will be worth watching whether concrete new investment and growth-engine plans emerge following the shift to an operating holding company, and how the market responds in terms of valuation re-rating.
Donga Socio Holdings continues its recovery trend, posting a record-high quarterly revenue in Q2 2026, though the swing to a net loss attributable to owners in Q4 2025 shows that volatility below the operating-profit line remains a feature of its results.
The largest variable ahead is the absorption merger with Donga Pharm, scheduled for October 1, which will convert the company from a pure holding company into an operating holding company and change its name to 'Donga Pharm.' The company expects this merger to help resolve the holding-company discount tied to overlapping affiliate listings and to provide funding for new growth investments.
Growth in Donga Pharm's Bacchus and OTC segments and the expanding global approvals for Imuldosa are positive factors, while order volatility at Btzen and the recent downward revisions to analyst target prices warrant attention.
The smooth execution of the merger process and the tangible changes in performance and governance that follow will likely be the key things to watch going forward. Investment decisions rest with each reader, and this report does not include a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
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