PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
ChoA Pharmaceutical has sharply narrowed its quarterly operating and net losses through 2026, but faces a dual challenge of earnings recovery and compliance with the raised KOSDAQ market-cap listing maintenance threshold of 20 billion won (rising to 30 billion won in 2027).
Owner net income turned positive at KRW 499.77 million in Q2 2026, reversing a KRW 1.415 billion loss in Q2 2025.
A 5-for-1 share consolidation was approved at the July 2026 extraordinary shareholders' meeting, cutting total shares outstanding from about 31.0 million to 6.2 million, in response to KOSDAQ's new penny-stock delisting rule that took effect in July.
Consolidated revenue declined for three straight years, from KRW 68.9 billion in 2022 to KRW 59.3 billion in 2025, with domestic product sales making up the bulk of revenue and driving the decline.
The company is expanding exports of its New Hem iron-supplement syrup line into emerging markets such as Guatemala and the Democratic Republic of the Congo, targeting KRW 2.2 billion in exports across six countries in 2026 and KRW 2.5 billion across seven countries in 2027.
KOSDAQ's market-cap listing maintenance threshold rose to KRW 20 billion in July 2026 and will rise again to KRW 30 billion in January 2027, intensifying listing-maintenance pressure across small-cap pharma and biotech names.
Founded in 1988 through the acquisition of Samgang Pharmaceutical, ChoA Pharmaceutical is a finished-dosage drugmaker whose core business is manufacturing and selling pharmaceuticals and quasi-drugs, with Medipharm Co. as its main subsidiary.
Most revenue comes from over-the-counter pharmacy products and health foods, centered on traditional OTC categories addressing indigestion, gastric disorders, iron-deficiency anemia, liver disease and allergic rhinitis.
The company operates the Medipharm Pharmacy chain brand and sustains brand marketing through mass-media advertising and sponsorships of weekend dramas and professional baseball. Its children's nutrition brand Zalkton marked its 20th anniversary with cumulative sales surpassing 10.45 million units as of end-June 2026.
More recently, the company has diversified into pet care with a six-product Zalkgae veterinary medicine and supplement line launched in July 2025, alongside sports-nutrition items such as the Dalshot Energy Gel for runners.
Its overseas push centers on the New Hem Syrup and New Hem Forte Syrup iron supplements targeting emerging markets in Africa and Southeast Asia with high iron-deficiency anemia prevalence, while it has obtained approvals in Guatemala for Hepatos Syrup, a liver activator, and Elas-A Liquid, for venous and lymphatic circulation disorders, and is expanding its export network to countries including the Democratic Republic of the Congo.
In May 2026 the company also joined a Korea-Latin America biomedical partnership event to hold export consultations with buyers in Mexico and Brazil, laying groundwork for entry into the region.
The domestic market is populated by numerous small and mid-sized pharmaceutical and health-food companies, and because the bulk of revenue is derived from domestic products, the company remains exposed to intensifying distribution competition and shifting consumer trends.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩13.6B | -₩1.5B | −11.0% |
| 2025Q3 | ₩15.5B | -₩1.5B | −9.6% |
| 2025Q4 | ₩15.8B | -₩1.5B | −9.5% |
| 2026Q1 | ₩14.7B | -₩1.1B | −7.6% |
| 2026Q2 | ₩15.2B | -₩23,007,215 | −0.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩68.9B | -₩500M | ₩600M | −0.7% | 1.1% | 66.6% |
| 2023 | ₩63B | -₩6.8B | -₩10.5B | −10.9% | −25.6% | 91.5% |
| 2024 | ₩62.7B | -₩9.6B | -₩9.6B | −15.4% | −30.6% | 149.7% |
| 2025 | ₩59.3B | -₩6.6B | -₩6.8B | −11.1% | −27.2% | 197.2% |
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
Consolidated revenue fell for three consecutive years, from KRW 68.9 billion in 2022 to KRW 63.0 billion in 2023, KRW 62.7 billion in 2024 and KRW 59.3 billion in 2025.
Over the same period, operating profit worsened from a loss of KRW 480 million in 2022 (operating margin of -0.7%) to a loss of KRW 9.65 billion in 2024 (-15.4%), before narrowing somewhat to a KRW 6.6 billion loss in 2025 (-11.1%).
Owner net income likewise stayed in the red for three straight years, moving from a KRW 560 million profit in 2022 to losses of KRW 10.51 billion in 2023, KRW 9.6 billion in 2024 and KRW 6.8 billion in 2025.
Quarterly trends, however, show clearer signs of improvement recently: owner net loss was KRW 1.415 billion in Q2 2025, narrowed to KRW 274 million in Q3, widened again to KRW 3.064 billion in Q4, then swung to a profit of KRW 26.1 million in Q1 2026 and KRW 500 million in Q2 2026, marking two consecutive profitable quarters.
Operating losses, which had hovered around KRW 1.5 billion per quarter through 2025, narrowed to KRW 1.12 billion in Q1 2026 and just KRW 23 million in Q2 2026, approaching breakeven.
This improvement appears to reflect both a modest revenue pickup (KRW 14.7 billion in Q1 2026 and KRW 15.2 billion in Q2 2026) and cost control, while no specific one-off factor for the widened Q4 loss is identifiable from disclosures.
On the balance sheet, accumulated losses have cut owner equity by more than half, from KRW 52.8 billion in 2022 to KRW 25.0 billion in 2025, while the debt ratio rose sharply from 66.6% to 197.2% over the same period, indicating a weakened capital buffer.
Non-controlling interest equity has also been negative every year since 2022, pointing to accumulated deficits at the subsidiary level as well.
Korea's OTC drug and health-food market is a mature segment with numerous small and mid-sized pharmaceutical companies competing, where distribution and marketing—rather than prescription dynamics—largely determine sales outcomes.
The pet care segment has drawn attention as a new growth area for the pharmaceutical industry, with rising pet ownership fueling expectations for market growth.
In emerging markets, demand for nutrition-related pharmaceuticals such as iron-deficiency anemia treatments remains steady, and competition continues among Korean small-cap drugmakers pursuing expansion into Africa, Southeast Asia and Latin America.
At the industry level, the biggest recent variable has been the overhaul of KOSDAQ's delisting regime.
In February 2026, the Financial Services Commission and Korea Exchange announced a reform plan to accelerate the removal of insolvent companies, moving up the schedule for raising the KOSDAQ market-cap listing maintenance threshold to KRW 20 billion in July 2026 and KRW 30 billion in January 2027.
A new "penny stock" rule targeting shares trading below KRW 1,000 also took effect from July 2026, with detailed criteria designed to prevent companies from circumventing the rule through simple share consolidations.
According to the KOSDAQ Association, as of August 24, 2026, 128 companies had market caps of KRW 20 billion or less, and adding those in the KRW 20-30 billion band brought the total to 349 companies, meaning many small-cap pharma and biotech names face similar listing-maintenance pressure.
Alongside ChoA Pharmaceutical, other low-priced peers such as Kyungnam Pharmaceutical have likewise pursued share consolidations to normalize their stock prices, a response spreading across the sector.
Under a mid-term roadmap established in early 2026, the company has designated new-business development, distribution channel diversification, and brand value enhancement as priorities for the second half, stating after the July extraordinary shareholders' meeting approved the share consolidation that it would concentrate on enhancing corporate value in H2.
New shares from the consolidation took effect on August 7, 2026, and were listed on August 27, 2026, leaving total shares outstanding at approximately 6.196 million as of the September 12, 2026 reference date.
On the export front, the company aims to expand its New Hem series to six countries in 2026 and seven in 2027, up from four in 2023, targeting export revenue of KRW 2.2 billion in 2026 and KRW 2.5 billion in 2027, while also holding export consultations with Mexican and Brazilian buyers in addition to its Guatemala and DR Congo operations.
In new businesses, the company continues to diversify its portfolio with the Zalkgae pet-care line and the Dalshot sports-nutrition energy gel.
That said, an industry source cautioned regarding the consolidation that "a share consolidation is merely a measure to meet listing requirements, not a fundamental solution to raising corporate value,
On a self-calculated basis, the current share price trades at a discount to net asset value, consistent with the fact that trailing four-quarter results remain in net-loss territory overall.
However, self-calculated and Korea Exchange (KRX) figures for net asset value per share differ, so the underlying calculation basis should be checked when comparing metrics. The company currently pays no dividend, so dividend-related metrics are not applicable.
When interpreting valuation, it is worth weighing the directional shift from large losses in 2023-2024 to profitable quarterly results in the first half of 2026, alongside the regulatory context that the company's market capitalization sits close to KOSDAQ's listing maintenance threshold (KRW 20 billion, rising to KRW 30 billion in 2027).
These factors call for an assessment that combines business fundamentals with listing-related regulatory variables rather than a simple price-level judgment.
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
Owner net income posted two consecutive profitable quarters in 2026, at KRW 26.1 million in Q1 and KRW 500 million in Q2, while the operating loss narrowed to just KRW 23 million in Q2, nearing breakeven. This marks a clear reversal from the widening losses seen through Q4 2025.
Revenue also edged up from KRW 14.7 billion in Q1 to KRW 15.2 billion in Q2, accompanying the improving cost structure.
The company is stepping up its push into African and Southeast Asian emerging markets with its New Hem iron-supplement line, and has held export talks with buyers in Mexico and Brazil in addition to existing operations in Guatemala and the DR Congo.
It has set targets to expand New Hem exports to six countries worth KRW 2.2 billion in 2026 and seven countries worth KRW 2.5 billion in 2027. This can be read as an attempt to offset stagnant domestic sales with new overseas markets.
The company approved a 5-for-1 share consolidation at its July 2026 extraordinary shareholders' meeting, preemptively addressing the penny-stock delisting rule, and set enhancing corporate value as a management priority for the second half.
The consolidation could also help mitigate future dilution concerns in the event of capital raising. These measures signal the company's active engagement in maintaining its listing status.
Consolidated revenue declined for three straight years, from KRW 68.9 billion in 2022 to KRW 59.3 billion in 2025, with weak domestic sales—which account for most of total revenue—cited as the main driver.
While emerging-market exports are expanding, their scale remains small, meaning it will take time before they can drive an overall revenue rebound. Some market observers view it as still too early to gauge results from the new businesses and export push.
Accumulated losses have cut owner equity by more than half, from KRW 52.8 billion in 2022 to KRW 25.0 billion in 2025, while the debt ratio surged from 66.6% to 197.2% over the same period. Non-controlling interest has also been negative every year, indicating accumulated deficits at the subsidiary level as well. This could translate into less favorable terms should the company need additional capital in the future.
KOSDAQ's market-cap listing maintenance threshold rose to KRW 20 billion in July 2026 and will rise again to KRW 30 billion in January 2027.
If a company's market cap falls short of the threshold for 30 consecutive trading days, it is designated an administrative issue, and failure to recover above the threshold for 45 consecutive trading days within the following 90 trading days can lead to delisting.
The company's market capitalization has moved near these thresholds, making it a variable that warrants ongoing monitoring.
The Financial Services Commission and Korea Exchange announced a delisting reform plan in February 2026 that moved up the schedule for raising KOSDAQ's market-cap threshold to KRW 20 billion in July 2026 and KRW 30 billion in January 2027.
A new delisting requirement targeting sub-KRW-1,000 penny stocks was also introduced, with detailed criteria designed to prevent simple circumvention through share consolidations.
Sustained shortfalls versus the threshold could lead to administrative-issue designation and potentially a substantive delisting review, warranting ongoing monitoring.
With owner equity shrinking and the debt ratio rising amid continued accumulated losses, any future need for external funding through rights offerings, convertible bonds or bonds with warrants could raise dilution concerns for existing shareholders.
Market commentary has suggested the share consolidation was partly a preemptive step ahead of such a funding scenario. Delisting requirements related to full capital impairment have also recently been expanded to a semiannual basis, raising the importance of balance-sheet management.
The core domestic product business, which accounts for most revenue, has continued to stagnate, with sales declining for three straight years. While emerging-market exports and new businesses such as pet care are underway, their scale remains modest, and it will take time to confirm their earnings contribution.
Some in the industry take a cautious view that it remains too early to judge the success of these new initiatives.
Around the Q3 quarterly report filing deadline, check whether the earnings improvement trend seen through Q2 2026 continues into Q3.
With market capitalization near the KOSDAQ listing maintenance threshold (KRW 20 billion), monitor whether it falls short for 30 consecutive trading days and check for potential administrative-issue designation.
The KOSDAQ market-cap listing maintenance threshold rises further to KRW 30 billion; reassess the company's market cap level and compliance with listing requirements after this date.
Check company disclosures and IR materials to see whether the 2026 New Hem series export target (six countries, KRW 2.2 billion) was achieved, to gauge progress on the overseas business.
ChoA Pharmaceutical has shown signs of earnings improvement, posting two consecutive quarters of owner net income in the black in the first half of 2026 while narrowing its operating loss to near breakeven.
At the same time, the company continues efforts to diversify its revenue base through expanded emerging-market exports and new businesses such as pet care.
However, annual revenue has declined for three straight years, driven mainly by weak sales of domestic products that make up the bulk of the top line, meaning a fundamental revenue recovery has not yet been confirmed.
Factors that must be weighed together include a weakened capital structure—with equity shrinking and the debt ratio rising amid accumulated losses—and a market capitalization that sits close to KOSDAQ's recently raised listing maintenance threshold (KRW 20 billion, rising to KRW 30 billion in 2027).
The 5-for-1 share consolidation that lifted the stock out of penny-stock territory can be read as a preemptive response to listing-maintenance risk, though industry observers note that a genuine recovery in sales and profitability must ultimately follow.
Overall, the company sits at a juncture where near-term earnings improvement coexists with longer-term revenue stagnation and listing-related regulatory risk, making it important to track both upcoming quarterly results and listing-related disclosures going forward.
Report written 2026-09-12 · Data as of 2026-09-11
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