PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
Revenue has held around the KRW 200 billion mark, but the operating margin has structurally declined, and the next thing to watch is whether the Hyangnam plant expansion changes the earnings trajectory from 2027 onward.
2025 consolidated revenue was KRW 202.4 billion, similar to the prior year, but the operating margin fell from 9.2% to 5.8%.
In both Q4 2025 and Q2 2026, net income far exceeded operating income, prompting views that non-operating factors need closer review.
The Hyangnam plant expansion, backed by KRW 42.9 billion in investment, is undergoing qualification review with a goal of starting injectable production lines in early 2027.
Revenue is split between human pharmaceuticals (over half) and animal health products (around 30%), with an expanding lineup of companion and livestock animal products.
The debt ratio rose from 64.5% in 2022 to 93.8% in 2025, and operating cash flow dropped sharply, marking a notable shift in the balance sheet.
Daehan Nupharm was founded in 1984 as Daehan Shinyak, starting in animal pharmaceutical manufacturing before expanding into human pharmaceuticals, health functional foods, biotech, and medical devices as a KOSDAQ-listed pharmaceutical company.
Revenue is split with human pharmaceuticals accounting for more than half and animal health products for roughly 30%, with the remainder from contract manufacturing and overseas business.
The human pharmaceutical segment consists of prescription drugs, obesity treatments, and wellness injections (vitamin, mineral, and immune-boosting injectables), with improved new drugs such as the GERD treatment 'Rapiduo' and the orlistat-based obesity drug 'Zerobi' as flagship products.
The animal health segment covers both companion and livestock animals, expanding its lineup with 'DH Fuzol,' the world's first approved improved new drug for canine malassezia dermatitis, and 'Inomycoco,' a swine mycoplasma vaccine.
The company is also broadening consumer touchpoints through new brands such as the pet-care brand 'Dianju' and the health functional food brand 'Dinew.' Its production base is located in the Hyangnam industrial complex in Hwaseong, Gyeonggi Province, where a KRW 42.9 billion plant expansion is proceeding in a second phase.
Governance-wise, Chairman Lee Wan-jin is the largest shareholder with a stake in the high-20% range, while his son, CEO Lee Won-seok, has increased his own stake and taken a more active management role.
Revenue is diversified across many small-volume products without a single item exceeding 10% of sales, which limits exposure to any single issue but also reflects the absence of a standout blockbuster product.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩49.9B | ₩3.1B | 6.1% |
| 2025Q3 | ₩48.9B | ₩2.1B | 4.3% |
| 2025Q4 | ₩51.8B | ₩2.3B | 4.5% |
| 2026Q1 | ₩54.8B | ₩3.1B | 5.7% |
| 2026Q2 | ₩56B | ₩2.2B | 3.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩198B | ₩27.6B | ₩24.3B | 13.9% | 23.6% | 64.5% |
| 2023 | ₩204.2B | ₩18.8B | ₩12.5B | 9.2% | 11.5% | 61.8% |
| 2024 | ₩202.2B | ₩18.7B | ₩15.5B | 9.2% | 12.3% | 76.4% |
| 2025 | ₩202.4B | ₩11.7B | ₩15.3B | 5.8% | 10.9% | 93.8% |
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 in 2025 was KRW 202.4 billion, nearly unchanged from KRW 202.2 billion in 2024, while operating profit fell noticeably from KRW 18.7 billion to KRW 11.7 billion, pulling the operating margin down from 9.2% to 5.8%.
This continues a decline that ran from a 13.9% operating margin on KRW 198.0 billion in revenue in 2022 to 9.2% in both 2023 and 2024, and steepened further in 2025 as revenue stalled around KRW 200 billion while cost and SG&A burdens grew.
However, net income attributable to owners held at KRW 15.26 billion in 2025, close to KRW 15.47 billion in 2024 and actually higher than KRW 12.54 billion in 2023, meaning the operating profit decline did not directly translate into weaker net income.
On a quarterly basis, revenue improved modestly from KRW 48.88 billion with KRW 2.08 billion operating profit in Q3 2025 to KRW 51.79 billion with KRW 2.34 billion in Q4 2025, but Q4 net income swelled to KRW 7.06 billion, far outpacing operating profit.
The same pattern continued into 2026, with Q1 revenue of KRW 54.84 billion, operating profit of KRW 3.14 billion, and net income of KRW 3.0 billion, followed by Q2 revenue of KRW 55.97 billion and operating profit of KRW 2.15 billion, while net income reached KRW 11.26 billion, more than five times operating profit.
This was corroborated by the half-year report, which confirmed standalone Q2 revenue of KRW 56 billion, operating profit of KRW 2.2 billion, and net income of KRW 11.3 billion, bringing first-half cumulative figures to KRW 110.8 billion in revenue, KRW 5.3 billion in operating profit, and KRW 14.3 billion in net income.
Given the recurring pattern of net income substantially exceeding operating profit, some observers note that non-operating items such as financial gains or other income may be influencing the results, warranting a closer look at the detailed line items.
For Q1 2026, commentary on a standalone basis also noted that while revenue grew, rising cost of goods sold pressured both gross profit and operating profit lower. Operating cash flow dropped sharply from KRW 18.9 billion in 2024 to KRW 5.1 billion in 2025, indicating a slower conversion of accounting profit into cash.
The domestic pharmaceutical and biotech industry continued to show a clear divergence between large-cap biotech firms and small-to-mid-sized traditional pharmaceutical companies through the first half of 2026.
Among 75 listed pharma and biotech companies, 45 posted operating profits while 30 recorded operating losses, putting the profitable ratio at 60%.
Large biotechs such as Samsung Biologics and Celltrion drove top-line growth with double-digit increases in both revenue and operating profit, while smaller traditional pharmaceutical firms saw results diverge sharply depending on product mix and cost efficiency.
In the animal health segment, the Korea Animal Health Products Association has projected the global market to grow from KRW 39 trillion in 2021 to KRW 103 trillion by 2031, positioning it as an area with medium- to long-term growth potential.
Alongside the expanding companion animal market, demand for new livestock vaccine products is also rising, prompting animal health specialists to keep broadening their product lineups.
On the human pharmaceutical side, ongoing government discussions on drug pricing system reform, including adjustments to generic pricing standards, are cited as a policy variable adding uncertainty across the industry.
Daehan Nupharm occupies a position as a smaller player relying on an improved-new-drug-centered strategy to avoid direct competition with large pharmaceutical companies while maintaining stability through a diversified, multi-product portfolio.
Daehan Nupharm is pushing ahead with a KRW 42.9 billion plant expansion at the Hyangnam industrial complex in Hwaseong, Gyeonggi Province, aiming to start injectable production lines in early 2027, with qualification review of the new facility currently underway.
The company has stated that it is strengthening its sales organization in preparation for expanded production capacity, and plans to focus on converting the increased output and new products into revenue starting in 2027.
The second-phase plant is being designed and prepared for construction with the goal of building one of the country's top-tier frozen injectable production lines.
On the product pipeline side, the company continues to roll out new formulations of the GERD treatment Rapiduo and new animal health products such as the swine mycoplasma vaccine Inomycoco.
The overseas business segment accounts for a single-digit share of total revenue, leaving room for portfolio diversification if overseas sales channels expand further.
However, since plant operations are scheduled for 2027, the expansion's earnings impact has not yet materially appeared within this report's coverage window through Q2 2026.
Reflecting the recent four quarters in which net income ran higher than before, Daehan Nupharm's price-to-earnings ratio appears to trade below the roughly 6x-to-10x band it has occupied in the past.
That said, because the net income increase has repeatedly outpaced operating profit by a wide margin in several quarters, the quality of those earnings warrants close attention. In terms of price relative to net assets, the stock trades below its book value per share.
On the dividend side, per-share cash dividends have continued, but the dividend yield is understood to trail the industry average.
The rise in the debt ratio from the 60% range in 2022 to the 90% range in 2025 reflects the funding burden of the new plant investment showing up in the capital structure, a factor worth weighing alongside valuation.
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
Both Q4 2025 and Q2 2026 saw net income attributable to owners far exceed operating profit, with the scale of quarterly net income itself expanding. Cumulative net income for the first half of 2026 came to KRW 14.3 billion, higher than the first half of 2025. While non-operating factors may be involved, the fact that total net income increased is confirmed.
New products such as DH Fuzol, the world's first approved improved new drug for canine dermatitis, and the swine mycoplasma vaccine Inomycoco continue to expand the animal health lineup.
Industry forecasts also point to the global animal health market growing from KRW 39 trillion in 2021 to KRW 103 trillion by 2031, leaving room for companion and livestock animal product expansion to contribute to business diversification.
The KRW 42.9 billion second-phase Hyangnam plant targets the start of injectable production lines in early 2027, and the company has stated it is strengthening its sales organization in line with capacity expansion.
With the goal of building one of the country's top-tier frozen injectable lines, there is potential for expanded production capacity to translate into a broader revenue base once completed.
The operating margin declined for four straight years, from 13.9% in 2022 to 9.2% in both 2023 and 2024, then to 5.8% in 2025. With revenue stalled around KRW 200 billion, rising cost and SG&A burdens are the driver, and commentary on Q1 2026 also cited rising cost of goods sold as a factor squeezing operating profit.
In both Q4 2025 and Q2 2026, net income reached three to five times operating profit, suggesting that gains beyond core operations drove results. Without confirmation of the detailed line items, some observers caution against treating this net income increase as a sustainable improvement in earning power.
The debt ratio rose from 64.5% in 2022 to 93.8% in 2025, while operating cash flow dropped sharply from KRW 18.9 billion in 2024 to KRW 5.1 billion in 2025.
The capital structure appears to be under greater strain as funding for the new plant investment proceeds, warranting continued attention to financial flexibility until the expansion is complete.
Ongoing government discussions on drug pricing system reform include reviews of generic pricing standards and post-market management adjustments. Daehan Nupharm's human pharmaceutical segment, with a significant share of improved new drugs and generics, could be exposed to such policy changes.
Rising cost of goods sold has pressured gross profit and operating profit across several quarters. If raw and subsidiary material price fluctuations persist, recovery in the operating margin could be delayed.
The Hyangnam plant expansion, a KRW 42.9 billion investment, targets operations in early 2027, but qualification review and licensing procedures remain, leaving open the possibility of schedule delays.
With the debt ratio already elevated from funding this investment, there is also room for the financing burden to grow further.
Check whether Q3 revenue, operating profit, and net income are confirmed via the quarterly report, particularly whether the pattern of net income far exceeding operating profit recurs.
Watch whether the qualification review of the Hyangnam plant is completed and whether the injectable production line startup proceeds on the planned schedule.
Look for whether detailed non-operating income and expense items are disclosed in the Q4 and full-year 2026 financials, clarifying the cause of the net income surges.
Monitor the launch and revenue contribution of new animal health products such as the swine mycoplasma vaccine Inomycoco.
Daehan Nupharm has maintained a diversified, small-volume revenue structure built on human and animal pharmaceuticals, holding revenue in the KRW 200 billion range through 2025, but its operating margin has declined for four straight years to 5.8%.
In contrast, net income attributable to owners held up robustly, far exceeding operating profit in both Q4 2025 and Q2 2026, though whether this gap stems from non-operating factors requires confirmation of detailed line items.
The company is pursuing a KRW 42.9 billion Hyangnam plant expansion aimed at boosting production capacity and converting new products into revenue starting in early 2027, meaning the expansion's effects have not yet been reflected in the period covered by this report.
The rise in the debt ratio from 64.5% in 2022 to 93.8% in 2025, alongside a sharp drop in operating cash flow, reflects balance sheet changes tied to funding the expansion, a factor to watch until construction is complete.
The mid-to-long-term growth outlook for the animal health market and the company's improved-new-drug-centered product strategy are supportive factors, while the structural margin decline, earnings quality questions, and rising financial burden stand as offsetting concerns.
The next quarterly results, progress on the new plant, and the detailed composition of net income are likely to be the key variables for future assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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