PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
Daebong LS surpassed KRW100 billion in consolidated annual revenue for the first time in 2025, and quarterly operating margin has shown a recovery trend into 2026, though net income attributable to owners has swung sharply from quarter to quarter.
2025 consolidated revenue reached KRW102.06 billion, the first time surpassing KRW100 billion, while operating margin narrowed to 7.2% from 9.6% a year earlier.
Q2 2026 revenue hit a record quarterly high of KRW33.65 billion, with operating margin also reaching the highest level in the trailing four quarters at 10.9%.
Net income attributable to owners swung from a high of roughly KRW7.1 billion in Q2 2025 to a loss in Q4 2025, near breakeven in Q1 2026, and back to a profit in Q2 2026.
Increased fixed costs, including depreciation from the newly completed Songdo B&H Plex headquarters, have been cited as a key factor behind the recent operating margin slowdown.
The share price trades below net asset value per share, while relative to earnings over the trailing four quarters it trades at a comparatively higher multiple.
Founded in 1986 and renamed to its current name in 2000, Daebong LS is a B2B materials company built on amino acid manufacturing technology, producing and selling cosmetic ingredients, pharmaceutical active ingredients, and food additive materials such as aquafeed inputs.
Revenue is broadly split into distributed goods, self-manufactured products, and services, with recent disclosures showing distributed goods at roughly 57%, self-manufactured products at about 26%, and services at around 17%.
In pharmaceutical ingredients, the company handles items such as Acetaminophen and Olmesartan Medoxomil, and since 2013 has partnered with formulation specialists to develop and sell a generic version of the hypertension drug Valsartan.
The cosmetic ingredients segment ranges from general-purpose materials to high-function bio-materials such as peptides and PDRN, characterized by a multi-brand, multi-category supply structure serving numerous K-beauty brands.
Its subsidiary, PNK Skin Clinical Research Center, is a human application testing institution responsible for verifying the safety and efficacy of cosmetic ingredients.
On July 29, 2025, the company relocated its headquarters to the integrated Songdo B&H Plex campus in Incheon's Songdo district, which also houses beauty OEM/ODM affiliate UCL, clinical testing unit PNK Skin Clinical Research Center, and color cosmetics specialist K-onirika, forming a one-stop system spanning ingredients, manufacturing, and clinical testing.
Based on this hub, the company plans to expand R&D related to obesity treatments (GLP-1 class), while pursuing US FDA OTC certification and medical device approvals as part of its global business expansion.
The competitive landscape is fragmented, with numerous domestic and international ingredient suppliers, and the company differentiates itself through an integrated platform spanning ingredient design and synthesis, drug delivery systems, formulation optimization, and clinical verification.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩26.4B | ₩2.4B | 8.9% |
| 2025Q3 | ₩24.8B | ₩800M | 3.1% |
| 2025Q4 | ₩24.8B | ₩600M | 2.4% |
| 2026Q1 | ₩29.1B | ₩2B | 6.9% |
| 2026Q2 | ₩33.7B | ₩3.7B | 10.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩93.5B | ₩8.2B | ₩8.6B | 8.7% | 7.4% | 25.4% |
| 2023 | ₩87.6B | ₩3.8B | ₩4.2B | 4.3% | 3.5% | 27.2% |
| 2024 | ₩94B | ₩9.1B | ₩7.3B | 9.6% | 5.6% | 45.6% |
| 2025 | ₩102.1B | ₩7.3B | ₩10.1B | 7.2% | 7.1% | 51.5% |
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 results show revenue of KRW93.50 billion and operating profit of KRW8.17 billion (8.7% margin) in 2022, followed by a decline to KRW87.62 billion in revenue and KRW3.80 billion in operating profit (4.3% margin) in 2023, largely due to foreign exchange and rising purchase costs.
In 2024, revenue rose to KRW93.95 billion with operating profit of KRW9.05 billion (9.6% margin), a clear margin recovery, and net income attributable to owners jumped to KRW7.34 billion.
In 2025, revenue reached KRW102.06 billion, surpassing KRW100 billion for the first time in company history, but operating profit fell to KRW7.33 billion (7.2% margin), a decline linked to higher fixed costs from operating the new Songdo B&H Plex headquarters.
Net income attributable to owners, however, rose sharply to KRW10.06 billion, with both revenue and net income setting new records.
Quarterly figures show pronounced volatility: Q2 2025 revenue was KRW26.45 billion with operating profit of KRW2.35 billion (8.9% margin) and owner net income of KRW7.13 billion, while Q3 slowed sharply to KRW24.83 billion in revenue and KRW0.77 billion in operating profit (3.1% margin), and Q4 saw revenue of KRW24.85 billion, operating profit of KRW0.60 billion (2.4% margin), and an owner net loss of KRW0.78 billion.
In 2026, Q1 revenue was KRW29.06 billion with operating profit of KRW1.99 billion (6.9% margin), showing early margin improvement, while owner net income was roughly breakeven at negative KRW0.01 billion.
Q2 2026 revenue reached KRW33.65 billion with operating profit of KRW3.67 billion (10.9% margin), the highest margin in the trailing four quarters, and owner net income turned positive at KRW1.19 billion.
The cosmetics and bio-materials industry in which Daebong LS operates is closely tied to the new product launch cycles of K-beauty brands, and the company diversifies this cyclical exposure through a multi-brand, multi-category supply structure rather than concentrating on any single brand.
The company has recently seen growing overseas exports of cosmetic ingredients to North America, Europe, and Southeast Asia; in the first half of 2026, total export value rose 52% year-on-year, with North America up 128%, Europe up 62%, and Southeast Asia up 57%.
The pharmaceutical ingredients segment targets generic drug markets such as hypertension and respiratory treatments, and the company plans to cultivate technology licensing for improved-drug raw materials and global commercialization of generic APIs as a new growth pillar.
Its clinical-testing subsidiary, PNK Skin Clinical Research Center, is expanding beyond cosmetics into health functional foods, beauty devices, and household goods, broadening the addressable service market.
The raw-material supply market itself remains fragmented, with numerous domestic and international competitors, and the company seeks differentiation through an integrated platform spanning ingredient design, manufacturing, and clinical testing at its Songdo B&H Plex hub.
More recently, the company has been exploring entry into obesity treatment (GLP-1 class) research and development, signaling an attempt to tap into new opportunities linked to global pharmaceutical trends beyond its traditional cosmetics and generic ingredient businesses.
For the second half of 2026, the company has stated it aims to raise the share of high-value-added bio materials such as peptides and PDRN based at Songdo B&H Plex, while advancing improved-drug and generic API commercialization to pursue both revenue growth and margin improvement together.
Over the medium to long term, it has laid out a strategy to diversify revenue sources through joint academic-industrial research commercialization and technology licensing for improved-drug raw materials.
In pharmaceutical ingredients, the company plans to expand its product portfolio and pursue global commercialization of generic APIs to build the pharma segment into a new growth pillar.
At the new headquarters, the company is pursuing expanded R&D for obesity treatments (GLP-1 class), US FDA OTC certification, medical device approvals, and broader collaboration with domestic and international researchers through an open-lab structure.
Subsidiary PNK Skin Clinical Research Center saw its first-half 2026 revenue grow 7.4% year-on-year, and the company is also cultivating an AI beauty-tech business leveraging its accumulated skin clinical data as a future growth driver.
Given that operating margin improved sequentially through Q1 and Q2 2026, a key point to watch will be whether the expansion of high-value materials and easing of fixed-cost burden in the second half translate into an actual margin improvement.
The share price trades below net asset value per share, suggesting a discount relative to net assets.
On the other hand, based on net income attributable to owners over the trailing four quarters—a period that includes a loss in Q4 2025 and a near-breakeven result in Q1 2026—the earnings-based trading multiple appears comparatively elevated.
There have been past periods when the stock traded at multiples in the low double digits, making the current earnings-based multiple appear high relative to that history. The company does pay a cash dividend, though the yield level appears lower than the sector average.
Overall, signals from the net-asset side and the recent earnings side point in different directions, and whether the margin recovery continues into the second half of 2026 will be an important variable in narrowing that gap.
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
Total exports in the first half of 2026 rose 52% year-on-year, with balanced growth across North America, Europe, and Southeast Asia. Diverse new product launches from domestic K-beauty brands are translating into repeat demand through the multi-brand, multi-category structure. Q2 2026 revenue set a record quarterly high, indicating continued top-line growth.
Operating margin improved sequentially through Q1 and Q2 2026. The company has outlined expansion of high-value bio materials such as peptides and PDRN, along with improved-drug and generic API commercialization, as its second-half strategy.
The integrated ingredient-manufacturing-clinical platform at Songdo B&H Plex could serve as a basis for future efficiency gains.
With business spread across cosmetic ingredients, pharmaceutical ingredients, and clinical testing services, dependence on any single industry cycle is relatively limited. Subsidiary PNK Skin Clinical Research Center is expanding its testing scope beyond cosmetics into health functional foods and beauty devices. The company is also exploring new business areas such as obesity treatment R&D.
Owner net income swung sharply from roughly KRW7.1 billion in Q2 2025 to a loss in Q4 2025 and a near-breakeven level in Q1 2026. This volatility can reduce the reliability of forward earnings estimates. The gap between operating profit and net income suggests the bottom line is influenced by non-operating factors.
Following the completion of Songdo B&H Plex, higher depreciation and facility maintenance costs contributed to a lower operating margin in 2025 compared to the prior year. In the first half of 2026, there were periods where operating profit declined year-on-year despite revenue growth.
If the fixed-cost burden persists longer than expected, the pace of profitability recovery could be delayed further.
According to recent disclosures, distributed goods account for more than half of total revenue. Distribution revenue typically carries lower margins than self-manufactured products, meaning revenue growth does not necessarily translate directly into profit growth.
Some subsidiaries and affiliates had continued to post losses as of earlier disclosures, which could weigh on group-wide profitability.
In 2023, operating margin fell sharply compared to the prior year due to foreign exchange increases and rising purchase costs. Given that a significant portion of raw materials are imported or sourced externally, the company remains exposed to currency fluctuations and international commodity price changes. This cost structure can amplify margin volatility even during periods of revenue growth.
Overseas regulatory approvals such as US FDA OTC certification and medical device authorization are in progress, but their completion timelines have not been finalized. Global commercialization of improved-drug and generic API products may also face delays depending on approval procedures in each country.
Given the nature of the cosmetics and pharmaceutical industries, regulatory changes across different countries can directly affect the pace of business expansion.
Based on earlier disclosures, some domestic subsidiaries continued to post losses even as their revenue grew. Because the group operates through an interconnected structure of affiliated companies, weak performance at any single affiliate could affect overall net income. Results from newer business areas, such as obesity treatment R&D, are likely to take time to materialize.
Check whether Q3 2026 operating margin continues the recovery trend seen in Q2, and whether owner net income remains in positive territory.
This is the point to verify whether the company's stated second-half goals of revenue growth and margin improvement are reflected in full-year results.
Watch for additional disclosures or news regarding progress on US FDA OTC certification and medical device approval efforts.
Monitor for disclosures related to technology licensing agreements for improved-drug raw materials or partnerships tied to obesity treatment (GLP-1 class) R&D.
Daebong LS surpassed KRW100 billion in consolidated revenue for the first time in 2025, and quarterly operating margin has shown sequential improvement into 2026.
However, net income attributable to owners has been volatile, moving from a loss in Q4 2025 to near breakeven in Q1 2026, with rising fixed costs from the new Songdo B&H Plex headquarters weighing on margins.
The business is diversified across cosmetic ingredients, pharmaceutical ingredients, and clinical testing services, with export growth and expanding high-value material mix underway.
On the other hand, a revenue structure skewed toward distributed goods, continued losses at some subsidiaries, and uncertainty around regulatory approval timelines are factors that warrant balanced consideration.
The share price currently shows mixed signals—trading at a discount to net asset value while trading at a comparatively higher multiple relative to recent earnings trends. Whether operating margin recovery continues and owner net income stabilizes in upcoming quarterly results will likely be the key points to watch.
Report written 2026-09-05 · Data as of 2026-09-04
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