KOSDAQBiotech & Pharma072020

Choong Ang Vaccine Laboratory

₩9,160▲ 0.22%2026-10-02 close

Market Cap

₩84.8B

Turnover

₩42,866,960

Volume

4,705 shares

Shares out.

9.3M

PER

10.8×

PBR

0.8×

EPS

₩859

Dividend Yield

2.15%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close

Report overview

Animal Vaccine Growth, ASF Vaccine Nears Commercialization

Choong Ang Vaccine Laboratories has expanded annual revenue and operating profit for four straight years, while overseas commercialization of its African swine fever (ASF) vaccine emerges as the next growth axis.

1
2025 revenue of KRW 49.07bn and operating profit of KRW 6.48bn, with both metrics rising continuously since 2022
2
Q1 2026 operating profit expanded sharply from the prior quarter, lifting the operating margin into the 20%-plus range
3
The ASF vaccine SuiShot ASF-X has obtained export-use product approval in Vietnam and the Philippines, accumulating commercial-farm field data
4
The company retired treasury shares twice, in December 2025 and June 2026, strengthening its shareholder-return policy
5
New product approvals for FMD diagnostic kits and the ASF vaccine have expanded sales reach into South America, including Brazil

Business structure

Founded in 1968, Choong Ang Vaccine Laboratories (CAVAC) is Korea's leading animal vaccine specialist with nearly six decades of focus on a single field.

Its core business spans vaccines for livestock such as swine, cattle and poultry, companion animal vaccines, and diagnostic and technical support services for farms and veterinarians.

The company develops and manufactures vaccines and diagnostic kits for major livestock diseases including foot-and-mouth disease (FMD), African swine fever (ASF) and circovirus, working with more than half of Korea's ten veterinary colleges and a network of domestic and overseas research institutions.

Its products are exported to more than 20 countries, with roughly 40% of sales reportedly generated overseas. CAVAC reinvests about 10% of revenue into research and development and holds over 40 animal-vaccine-related patents.

It has secured leading data in ASF vaccine development, an area where even major global pharmaceutical companies have struggled to commercialize a product, and is now applying its vaccine on commercial farms in Vietnam and the Philippines.

The company competes with domestic rival Komipharm International in the race to commercialize the world's first ASF vaccine. Mid- to long-term growth strategies also include a local production base in Egypt through a joint venture and a push into global contract manufacturing (CMO).

Its customer base of swine, poultry and dairy farms, government quarantine authorities, and overseas distribution partners ties the business closely to public animal-health policy.

Earnings trend

Quarterly revenue · Operating profit

₩12B₩1.5B25Q2₩11B₩1.5B25Q3₩12.8B₩1.1B25Q4₩12.6B₩3B26Q1₩11.9B₩1.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩39.3B₩4.3B2022₩41.9B₩7B2023₩45.6B₩5.8B2024₩49.1B₩6.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩12B	₩1.5B	12.5%
2025Q3	₩11B	₩1.5B	14.1%
2025Q4	₩12.8B	₩1.1B	8.9%
2026Q1	₩12.6B	₩3B	23.8%
2026Q2	₩11.9B	₩1.1B	9.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩39.3B	₩4.3B	₩4B	10.9%	4.2%	20.5%
2023	₩41.9B	₩7B	₩6B	16.7%	6.0%	19.8%
2024	₩45.6B	₩5.8B	₩6.9B	12.6%	6.6%	18.7%
2025	₩49.1B	₩6.5B	₩6.2B	13.2%	5.8%	16.6%

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

Earnings analysis

Annual results show a clear expansion trend, with revenue rising from KRW 39.30bn and operating profit of KRW 4.28bn in 2022 to revenue of KRW 49.07bn and operating profit of KRW 6.48bn in 2025.

The operating margin peaked at 16.7% in 2023, dipped to 12.6% in 2024, and recovered modestly to 13.2% in 2025, showing some volatility.

Net income attributable to owners rose from KRW 4.04bn in 2022 to KRW 5.998bn in 2023 and KRW 6.85bn in 2024, but declined to KRW 6.157bn in 2025 despite higher revenue, suggesting non-operating factors were at play.

Operating cash flow also shrank sharply, from KRW 13.40bn in 2024 to KRW 7.87bn in 2025, pointing to possible working-capital swings in inventory or receivables.

On a quarterly basis, revenue of KRW 12.05bn and operating profit of KRW 1.50bn in Q2 2025 gave way to revenue of KRW 12.80bn and operating profit of KRW 1.14bn in Q4 2025, a somewhat lower margin, before Q1 2026 saw operating profit surge to KRW 2.997bn on revenue of KRW 12.59bn, lifting the operating margin into the mid-20% range.

This direction is consistent with FnGuide's separate-entity data showing Q1 2026 operating profit up 31.0% and net income up 57.7% year-on-year. However, Q2 2026 saw revenue and operating profit ease back to KRW 11.90bn and KRW 1.14bn, respectively, confirming meaningful quarter-to-quarter earnings volatility.

Net income attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) totaled KRW 7.988bn, an annualized pace above the levels seen in 2024-2025.

Industry analysis

The animal vaccine industry, both domestically and globally, is underpinned by two demand drivers: the shift toward preventive disease control amid tighter regulation of antibiotic overuse, and the continued occurrence of livestock diseases such as ASF, FMD and avian influenza.

Recent outbreaks of FMD and ASF in parts of Korea have kept demand for vaccination and diagnostics from quarantine authorities steady. According to FnGuide data, tighter antibiotic regulation has broadened preventive awareness, translating into solid growth in animal vaccine demand.

Globally, large animal-health companies such as Boehringer Ingelheim, Zoetis and MSD Animal Health lead the market, but in areas like ASF vaccines—where no global product has yet been successfully commercialized—Korean firms including CAVAC and Komipharm International stand out for their advanced clinical data.

Korea's Animal and Plant Quarantine Agency has signaled continued expansion of next-generation vaccine platform research, including mRNA and viral-vector technologies, alongside public-private-academic cooperation, indicating sustained policy support for domestic vaccine development.

Still, the domestic market itself remains limited in size, leaving overseas exports and the commercialization of new vaccines as the key variables for growth.

Outlook

In Q1 2026, the company obtained new product approvals for an FMD diagnostic kit and its ASF vaccine, expanding its sales reach into South America, including Brazil.

Its ASF vaccine, SuiShot ASF-X, has received export-use product approval in Vietnam and the Philippines and is accumulating field-application data on commercial farms; at the World Congress of Pig Veterinary Society held in Ho Chi Minh City in June 2026, the company presented safety and efficacy data aligned with WOAH guidelines through a dedicated symposium.

CAVAC is also pursuing development of an oral bait vaccine for wild boars and research addressing recombinant ASF virus strains, aiming to diversify its disease-control solutions.

Discussions on technology licensing with multinational companies are proceeding in parallel, making it a point to watch whether commercialization eventually translates into royalty or licensing income.

On the shareholder-return front, the company retired treasury shares twice, in December 2025 and June 2026; the June retirement covered KRW 2.1bn, or 201,906 shares, roughly 2.1% of total shares outstanding.

Plans for a local production base in Egypt through a joint venture and a push into global contract manufacturing are cited as mid- to long-term growth drivers, though specific timelines or revenue contributions have not yet been disclosed.

Valuation

PER

10.8×

PBR

0.8×

ROE

7.6%

EPS

₩859

BPS

₩11,519

Dividend per share

₩200

Relative to net asset value, the current share price appears to sit in the lower-to-middle portion of the company's historical trading band, trading at a discount to book value.

The scale of earnings has shown a steady recovery and expansion in direction since 2022, with quarters such as Q1 2026 showing marked improvement.

The price-to-earnings ratio appears to sit within the range the company has historically traded in, though evaluating it on a trailing four-quarter earnings basis can produce a somewhat different reading than annual figures alone.

Shareholder returns show a strengthening trend combining cash dividends with treasury share retirements, in line with a broader shift toward expanded shareholder returns among other small- and mid-cap pharmaceutical and biotech firms.

It is worth noting, however, that the company itself has stated in recent disclosures that it believes the market has not fully recognized its corporate value, indicating a potential gap between the company's and the market's views on 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

Bull factors

Lead Position in Race for World's First ASF Vaccine

In ASF vaccine development, an area where even large global animal-health companies have not succeeded, CAVAC has secured safety and efficacy data aligned with WOAH guidelines.

Having obtained export-use product approval in Vietnam and the Philippines and moved into commercial-farm field application, the company appears to be ahead of peers in the commercialization stage. Parallel discussions on technology licensing with multinational firms carry potential for licensing income if successful.

Multi-Year Revenue and Profit Expansion with Quarterly Improvement

Revenue and operating profit expanded together from 2022 through 2025, underpinning business stability. Q1 2026 saw the operating margin improve into the mid-20% range, an example of quarterly profitability gains. The debt ratio also declined from 20.5% in 2022 to 16.6% in 2025, reflecting a strengthening balance sheet.

Export Expansion and Strengthened Shareholder Returns

Products are exported to more than 20 countries, and new product approvals in Q1 2026 further expanded sales into South America, including Brazil. Two rounds of treasury share retirement, in December 2025 and June 2026, reduced total shares outstanding, demonstrating tangible commitment to shareholder returns.

Bear factors

Earnings Volatility and Exposure to Non-Operating Factors

In 2025, net income attributable to owners fell year-on-year despite higher revenue, and operating cash flow shrank sharply from KRW 13.40bn in 2024 to KRW 7.87bn in 2025. Quarterly results also swung meaningfully, with operating profit dipping to KRW 1.14bn in Q4 2025 before jumping to KRW 2.997bn in Q1 2026. Such swings make it difficult to draw firm conclusions from any single period's results.

Regional and Regulatory Uncertainty in ASF Vaccine Commercialization

The ASF vaccine is still undergoing commercialization procedures in Vietnam, the Philippines and elsewhere, and full country-by-country commercial approval along with mass production and distribution systems have not yet been finalized.

Technical and administrative variables remain, including reliance on overseas production facilities and the need to address recombinant ASF virus strains, so delays in the commercialization timeline cannot be ruled out. In Korea, whether to use the ASF vaccine domestically at all remains a policy decision yet to be made.

Small Market Capitalization and Company's Own Comments on Market Recognition

In a recent disclosure, the company stated that despite solid results and secured growth drivers, the market has not fully recognized its corporate value, which may reflect the limited trading volume and information access typical of a small-cap stock.

Given its small market capitalization, share price volatility tied to individual events can be relatively pronounced.

Risk factors

Disease Outbreaks and Quarantine Policy Changes

The pattern of livestock disease outbreaks—FMD, ASF, avian influenza—and shifts in government quarantine and vaccination policy directly affect revenue.

Reduced outbreaks or a policy shift toward imported vaccines or competing products could dampen demand, while a surge in outbreaks could concentrate demand in the short term, making revenue relatively difficult to predict.

Overseas Regulatory Approval and Production/Distribution Risk

Country-by-country product approval and commercialization procedures in markets like Vietnam and the Philippines can be delayed or have their conditions altered depending on the regulatory environment.

If reliance on overseas production facilities continues, unexpected disruptions in local GMP certification, quality control or logistics are possible. The planned production base in Egypt through a joint venture is still at the planning stage and may take time before it becomes operational.

Foreign Exchange and Raw Material Cost Volatility

Given that a significant portion of revenue is generated overseas, currency fluctuations can affect results, and rising costs for vaccine raw materials and production could pressure the operating margin.

The wide swing in quarterly operating margins, from roughly 9% to the mid-20% range, may not be unrelated to such cost and currency variables.

What to watch next

Mid-November 2026
Q3 2026 earnings are expected to be disclosed around this time, providing a check on whether the operating margin improvement seen in Q1 2026 has continued.
H2 2026 through H1 2027
It is worth monitoring the progress of ASF vaccine commercialization in Vietnam and the Philippines, as well as any additional country registrations or technology-licensing agreements.
Winter season (November to following February) each year
This is the seasonal window for FMD, ASF and avian influenza outbreaks in Korea, a period to watch for how outbreak counts and government vaccination policy changes affect vaccine demand.
Upon further disclosures on the Egypt joint-venture production base
It will be important to check whether construction, operation timelines and initial production capacity for the Egypt local production base become concrete.

Overall view

Choong Ang Vaccine Laboratories is an animal vaccine specialist that has grown both revenue and operating profit continuously since 2022, with its balance sheet gradually strengthening as the debt ratio has declined.

That said, 2025 saw net income attributable to owners and operating cash flow decline despite higher revenue, and quarterly operating margins swung widely, from roughly 9% to the mid-20% range.

The key growth variable is the overseas commercialization of its ASF vaccine, with product approvals and field application underway in Vietnam and the Philippines, alongside ongoing discussions on technology licensing with multinational companies.

The company has strengthened its shareholder-return policy through two rounds of treasury share retirement, while also stating its own view that the market has not fully recognized its corporate value.

Investors will want to watch upcoming quarterly earnings, disclosures related to ASF vaccine commercialization, and trends in domestic and international livestock disease outbreaks.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.