PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩190 per share · Prices as of the 2026-10-02 close
After a sharp decline in 2025 revenue and operating profit, Sinil Pharmaceutical has shown two consecutive quarters of operating profit improvement in the first half of 2026.
2025 revenue fell 9.9% year-on-year to KRW 80.6 billion, while operating profit dropped 51.4% to KRW 7.4 billion.
The company posted an operating loss of about KRW 424 million in Q4 2025, but returned to profit and improved further in both Q1 and Q2 2026.
Pharmaceutical manufacturing and CMO operations make up the vast majority of sales, while newer businesses such as cosmetics and health foods remain a limited share.
Despite the earnings decline, the company maintained its cash dividend, continuing its shareholder return policy.
The shares trade at a discount to net asset value and near the lower end of their historical trading band relative to recent earnings.
Sinil Pharmaceutical was founded in 1971 and listed on KOSDAQ in 1999 as a mid-tier pharmaceutical manufacturer.
The company produces a wide range of dosage forms including tablets, capsules, syrups, ointments and creams, injectables, and plasters and patches, and also operates a contract manufacturing (CMO) business built on its multi-product production know-how.
The pharmaceutical segment accounts for the vast majority of revenue, having represented more than 95% of quarterly sales in past disclosures. The company entered the cosmetics business in 2013 with a skincare brand and the same year moved into health functional foods with multivitamin products.
However, the combined revenue share of these newer segments (cosmetics, health foods, masks) has fallen from a peak near 8% to roughly 3-4% of total sales in more recent periods.
Korea's domestic pharmaceutical industry is characterized by intense competition among numerous small and mid-sized generic-focused manufacturers, and Sinil positions its diverse formulation capabilities and CMO business as a source of revenue stability.
R&D spending has generally expanded alongside revenue growth, though the ratio of R&D to sales has remained comparatively modest within the sector. Given this structure, the company's results are sensitive to domestic prescription market conditions, drug pricing policy, and raw material costs.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩19.6B | ₩3.2B | 16.2% |
| 2025Q3 | ₩20.6B | ₩2.7B | 12.9% |
| 2025Q4 | ₩21.1B | -₩400M | −2.0% |
| 2026Q1 | ₩20.9B | ₩1.3B | 6.4% |
| 2026Q2 | ₩24.2B | ₩2.3B | 9.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩80B | ₩13.7B | ₩12.2B | 17.1% | 9.9% | 15.9% |
| 2023 | ₩89.1B | ₩14B | ₩13.6B | 15.7% | 10.1% | 13.0% |
| 2024 | ₩89.4B | ₩15.2B | ₩14.3B | 17.0% | 9.8% | 13.2% |
| 2025 | ₩80.6B | ₩7.4B | ₩7.5B | 9.2% | 4.9% | 11.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue rose from KRW 80.0 billion in 2022 to KRW 89.1 billion in 2023 and KRW 89.4 billion in 2024, but growth reversed in 2025 with revenue falling 9.9% to KRW 80.6 billion.
Operating profit had climbed from KRW 13.7 billion in 2022 to KRW 14.0 billion in 2023 and KRW 15.2 billion in 2024, keeping the operating margin near 17%, but it was roughly halved to KRW 7.4 billion in 2025, pulling the margin down to 9.2%.
Net profit attributable to controlling shareholders similarly fell 47.3% from KRW 14.3 billion in 2024 to KRW 7.5 billion in 2025.
On a quarterly basis, operating profit eased from KRW 3.2 billion in Q2 2025 to KRW 2.7 billion in Q3 2025 before turning into an operating loss of about KRW 424 million in Q4 2025, the only loss-making quarter within the period shown (Q3 2025-Q2 2026).
Operating profit then returned to positive territory at KRW 1.3 billion in Q1 2026 and improved further to KRW 2.3 billion in Q2 2026 on revenue of KRW 24.2 billion.
Net profit attributable to controlling shareholders summed across the trailing four quarters (Q3 2025-Q2 2026) came to about KRW 6.4 billion, reflecting the continued drag from the weak fourth quarter of 2025. The company itself attributed the 2025 earnings decline directly to the drop in revenue. On the balance sheet side, the debt ratio improved steadily, falling from 15.9% in 2022 to 11.2% in 2025.
Korea's domestic pharmaceutical industry benefits from structural growth drivers tied to an aging population and rising demand for chronic disease and prescription medicines, but it also faces structural pressure from government drug price cuts and intensifying competition among numerous generic manufacturers.
At the sector level, the average operating margin for 30 KOSDAQ-listed pharmaceutical companies in 2025 was 11.96%, up 1.24 percentage points year-on-year, while the average for 35 KOSPI-listed pharmaceutical companies was 4.97%, down slightly.
Sinil Pharmaceutical's 2025 operating margin of 9.17% came in below the KOSDAQ pharmaceutical sector average. Contract manufacturing (CMO) is used by many domestic pharmaceutical companies as a stable revenue base, and Sinil follows a similar structure.
Across the industry, 2025 fiscal year-end dividends generally expanded compared with the prior year, with more companies resuming or initiating payouts.
Still, performance dispersion among individual companies remains wide, and weak fourth-quarter results tied to rising cost ratios or one-off expenses were observed at other companies in the sector as well.
Sinil Pharmaceutical has not publicly disclosed specific quantitative guidance, so the future earnings path will need to be tracked through quarterly disclosures.
The consecutive operating profit improvement in Q1 and Q2 2026 can be read as a move away from the weak fourth quarter of 2025, but whether this recovery is a sustained trend requires confirmation from further quarterly results.
The company continues to rely on its diverse dosage-form production capability and CMO business as core strengths, which may act as a buffer against dependence on any single product.
The cosmetics and health food segments have seen their revenue share shrink versus prior periods, making any rebound in these businesses a point to watch going forward.
R&D spending has trended higher in recent years, and whether this translates into new product approvals or revenue contribution warrants continued monitoring.
Government drug pricing policy direction and changes to national health insurance financing rules also remain variables that could affect the company's medium-term profitability.
Sinil Pharmaceutical's shares trade at a discount to net asset value, a pattern that appears linked to the recent earnings downturn.
On an earnings basis, the stock appears to sit near the lower end of its multi-year trading band, though this needs to be interpreted with caution given the 2025 profit decline embedded in recent metrics.
The dividend was maintained even amid weaker performance, and the dividend yield is not clearly high or low relative to the sector. How the recent two consecutive quarters of profit improvement feed through into these valuation metrics will depend on subsequent quarterly results and market assessment.
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 2026-08-23
After recording an operating loss in Q4 2025, operating profit improved consecutively in Q1 and Q2 2026. Q2 revenue reached KRW 24.2 billion, the highest level within the recent quarterly window. If this recovery continues, it could serve as a turning point to move past the poor performance of 2025.
The capability to produce various dosage forms ranging from tablets to patches, along with the CMO (contract manufacturing) business, is a factor that reduces dependence on specific products. This can act as a buffer against price cuts or demand fluctuations for individual products. The know-how in multi-item production is also cited as a barrier to entry compared to competitors.
The debt ratio improved from 15.9% in 2022 to 11.2% in 2025, indicating enhanced financial stability. The fact that the company continued cash dividends even in 2025, when performance declined significantly, reflects the company's stance on shareholder returns. The stable financial structure can be viewed as capacity for future investment or business diversification.
Revenue in 2025 decreased 9.9% year-over-year, and operating profit fell by as much as 51.4%. The company explained that the revenue decline was the direct cause. This case demonstrates that earnings volatility is considerably high.
In Q4 2025, the company recorded an operating loss of around KRW 420 million, making it the only quarter with a loss within the recent quarterly window. This could be a seasonal factor or a signal of structural cost pressure, requiring confirmation through additional quarters. The combined net profit for the most recent four quarters is also affected by this downturn.
The revenue share of new business segments such as cosmetics and health functional foods is understood to have declined from a past peak of approximately 8% to a recent level of 3-4%. The 2025 operating margin of 9.17% is lower than the KOSDAQ pharmaceutical industry average of 11.96%.
Government drug pricing policies and intensifying generic competition remain structural pressure factors across the industry.
Government drug price cut policies and changes to health insurance financing systems can affect profitability across the pharmaceutical industry as a whole. Reassessment of prices for specific products or changes in reimbursement standards can directly impact revenue. Such policy variables are external factors difficult for the company to control.
The domestic generic drug market has a structure where numerous small and medium-sized pharmaceutical companies compete, and if price competition intensifies, margin pressure could increase. The CMO business is also exposed to fluctuations in order volume from client companies.
The decline in operating margin in 2025 can be seen as a case where such competitive pressure was actually reflected.
New businesses such as cosmetics and health functional foods have a reduced revenue share compared to the past and are failing to offset the downturn in the core pharmaceutical segment.
Whether these new business segments will rebound is uncertain, and there is a possibility that results could be delayed even with additional investment. If expanded R&D investment does not lead to new revenue, it could only increase the cost burden.
Check the Q3 2026 earnings disclosure to see whether the profit improvement seen in Q1-Q2 2026 continues.
This period allows a check on whether an operating loss recurs and whether Q4 2025's loss was seasonal or structural in nature.
The 2026 fiscal year annual results and dividend announcement will show the extent of recovery from the 2025 decline and whether shareholder returns continue.
Monitor DART disclosures for changes in the revenue share of cosmetics and health food segments and for outcomes of R&D investment such as new product approvals.
Sinil Pharmaceutical experienced a clear earnings slowdown in 2025, with revenue and operating profit falling 9.9% and 51.4% respectively, and even posted a quarterly operating loss in Q4.
However, operating profit improved for two consecutive quarters in Q1 and Q2 2026, showing signs of recovery, and whether this trend continues is a key point to watch going forward.
The company maintains a stable revenue base through its diverse dosage-form production capabilities and CMO business, along with an improved debt ratio, and it kept paying dividends even during the earnings downturn.
On the other hand, the revenue share of newer businesses such as cosmetics and health foods has shrunk, and the 2025 operating margin fell below the KOSDAQ pharmaceutical sector average. The shares trade at a discount to net asset value, though this can be interpreted as tied to the recent earnings weakness.
Before drawing any investment conclusions, it will be important to confirm through future quarterly disclosures whether the recovery trend persists.
Report written 2026-09-05 · Data as of 2026-09-04
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