KOSDAQBiotech & Pharma086450

DongKookPharmaceuticalCo

₩22,800▲ 2.93%2026-10-02 close

Market Cap

₩1T

Turnover

₩17.4B

Volume

760,000 shares

Shares out.

45.2M

PER

12.7×

PBR

1.4×

EPS

₩1,703

Dividend Yield

0.93%

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

Cosmetics Export Growth Fuels Record Earnings

Dongkook Pharmaceutical has posted four consecutive years of record earnings as overseas exports of its Centellian24 cosmetics brand accelerate on top of a stable OTC/ETC drug base.

1
2025 consolidated revenue reached KRW926.9 billion with operating profit of KRW96.6 billion (10.4% margin) and owners' net income of KRW66.0 billion, all up year-on-year.
2
First-half 2026 overseas revenue rose 94.7% year-on-year to KRW73.3 billion, while Centellian24's overseas sales in the second quarter jumped 566% versus a year earlier.
3
Several brokerages and the Korea IR Service's research center project 2026 consolidated revenue will exceed KRW1 trillion, potentially making the company the ninth Korean drugmaker to join the 'KRW1 trillion club'.
4
The three-month formulation of long-acting injectable Leuprorelin Depot has completed Phase 3 trials with a 2027 launch target, alongside a roughly KRW60 billion investment to expand production capacity 2.5-fold at the Jincheon plant.
5
As cosmetics and healthcare revenue grows in weight, questions are being raised about balancing the company's traditional pharmaceutical identity with concerns over reduced R&D spending.

Business structure

Dongkook Pharmaceutical operates three business pillars: over-the-counter drugs (OTC), prescription drugs (ETC), and healthcare (H&B).

The OTC segment is built around 'Insadol,' the long-standing No. 1 brand in Korea's gum-disease treatment market for over 51 years, and 'Madecassol,' a wound-care ointment with half a century of history.

The ETC segment rests on prescription products including the intravenous anesthetic 'Fropofol,' the long-acting injectable 'Pamiray,' and the hormone-suppressing injectable 'Leuprorelin Depot,' providing a stable domestic revenue base.

The healthcare segment has expanded from the dermocosmetic brand 'Centellian24' and its bestselling 'Madeca Cream' into cosmetics, the health-supplement brand 'MyFit,' and the beauty device 'Madeca Prime.' Over the past decade, the share of pharmaceutical products in total revenue has declined markedly while the cosmetics and healthcare category has grown, reshaping the company's business mix.

The cosmetics business is expanding its offline distribution through roughly 200 Costco stores and Ulta Beauty and Nordstrom locations in the United States, and through Don Quijote, LOFT, and Matsumoto Kiyoshi outlets in Japan.

Subsidiaries include cosmetics ODM specialist Ribom Cosmetics, beauty-device maker WithNix, and finished-drug subsidiary Dongkuk Life Science. In the gum-disease OTC market, Myungmoon Pharm's 'Egatan' remains a long-running rival, while Centellian24 continues to hold a leading position in Korea's dermocosmetics market.

Earnings trend

Quarterly revenue · Operating profit

₩233.5B₩22.1B25Q2₩226.8B₩24.8B25Q3₩242.9B₩24.3B25Q4₩251B₩27.3B26Q1₩258.9B₩26.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩661.6B₩72.7B2022₩731B₩66.9B2023₩812.2B₩80.4B2024₩926.9B₩96.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩233.5B	₩22.1B	9.5%
2025Q3	₩226.8B	₩24.8B	10.9%
2025Q4	₩242.9B	₩24.3B	10.0%
2026Q1	₩251B	₩27.3B	10.9%
2026Q2	₩258.9B	₩26.1B	10.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩661.6B	₩72.7B	₩52.9B	11.0%	10.5%	44.7%
2023	₩731B	₩66.9B	₩47.2B	9.1%	8.7%	45.7%
2024	₩812.2B	₩80.4B	₩61.2B	9.9%	10.1%	40.4%
2025	₩926.9B	₩96.6B	₩66B	10.4%	9.9%	39.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

2025 consolidated revenue reached KRW926.9 billion, marking a fourth consecutive record year following KRW661.6 billion in 2022, KRW731.0 billion in 2023, and KRW812.2 billion in 2024. The operating margin fell from 11.0% in 2022 to 9.1% in 2023 before recovering to 9.9% in 2024 and 10.4% in 2025.

Owners' net income moved from KRW52.9 billion in 2022 to KRW47.2 billion in 2023, then recovered to KRW61.2 billion in 2024 and KRW66.0 billion in 2025.

On a quarterly basis, second-quarter 2025 revenue was KRW233.5 billion with operating profit of KRW22.1 billion and owners' net income of KRW15.8 billion, while third-quarter 2025 showed margin improvement with revenue of KRW226.8 billion, operating profit of KRW24.8 billion, and owners' net income of KRW20.0 billion.

Fourth-quarter 2025 revenue was KRW242.9 billion with operating profit of KRW24.3 billion, but owners' net income slipped to KRW13.9 billion from the prior quarter.

First-quarter 2026 owners' net income jumped to KRW24.9 billion on revenue of KRW251.0 billion and operating profit of KRW27.3 billion, and second-quarter 2026 revenue hit a quarterly record of KRW258.9 billion, though operating profit of KRW26.1 billion and owners' net income of KRW17.5 billion both eased from the prior quarter.

Cumulative owners' net income over the most recent four quarters (Q3 2025 through Q2 2026) totaled approximately KRW76.3 billion, underscoring the ongoing earnings improvement trend. The debt ratio also improved, declining from 44.7% in 2022 to 39.2% in 2025.

Industry analysis

Korea's pharmaceutical industry currently counts eight companies with revenue exceeding KRW1 trillion — Yuhan, GC Biopharma, Chong Kun Dang, Kwangdong Pharmaceutical, Daewoong Pharmaceutical, Hanmi Pharmaceutical, HK inno.N, and Boryung — with Dongkook Pharmaceutical mentioned as a potential ninth entrant.

The domestic OTC market has matured with slower growth, while the healthcare consumer segment spanning dermocosmetics and beauty devices is expanding faster on the back of K-beauty export growth.

Cosmetics exports, concentrated in the United States and Japan, are shifting from online-led sales to offline channels, diversifying from an Amazon-centric structure toward large retail networks such as Costco, Ulta Beauty, and Nordstrom in the U.S. and Don Quijote, LOFT, and Matsumoto Kiyoshi in Japan.

In the long-acting injectable (drug delivery system) space, the sex-hormone suppressant market is estimated at roughly KRW80 billion domestically and about KRW5 trillion globally, providing room for Dongkook's Leuprorelin Depot to expand.

Korea's certification criteria for 'innovative pharmaceutical companies' are shifting from qualitative to quantitative metrics, favoring firms with demonstrated new drug development and licensing achievements.

Fellow health-and-beauty-diversified drugmaker Dong-A ST peer Dong Wha Pharmaceutical is also expanding non-pharmaceutical businesses, including a Vietnamese pharmacy chain acquisition, intensifying competition among companies pursuing hybrid pharma-consumer business models.

Outlook

Multiple brokerages and the Korea IR Service's research center project 2026 consolidated revenue will surpass KRW1 trillion, with first-half revenue already reaching KRW509.9 billion, raising the likelihood of achieving the annual target.

Forecasts for cosmetics export revenue have been revised upward from about KRW16.3 billion in 2024 and KRW30 billion in 2025 to over KRW100 billion in 2026.

The company is pursuing a shift from online-led to combined online-offline growth by expanding into major U.S. beauty retail channels and Japanese drugstore and variety-store networks.

In the ETC segment, it has signed a 10-year, roughly KRW39 billion supply agreement with a Spanish partner to distribute its benign prostatic hyperplasia combination drug 'Yuresco' across 13 Latin American countries, expanding its international footprint.

In drug delivery systems, the three-month formulation of Leuprorelin Depot has completed Phase 3 trials with a 2027 launch target, and the company is investing roughly KRW60 billion to expand injectable production capacity 2.5-fold at its Jincheon, North Chungcheong plant, with operations slated to begin in the second half of 2027.

An obesity treatment candidate using the same microsphere platform is also in preclinical development, offering potential mid- to long-term pipeline expansion. However, these new pipeline assets remain at an early stage and will require time before contributing to revenue.

Valuation

PER

12.7×

PBR

1.4×

ROE

11.5%

EPS

₩1,703

BPS

₩15,441

Dividend per share

₩200

Dongkook Pharmaceutical has continued an earnings recovery trend, with revenue and operating profit setting new records in recent years.

Relative to this pace of earnings growth, some brokerage reports have noted that the price-to-earnings ratio has traded below its multi-year historical average band; LS Securities, in a mid-August 2026 report, assessed that the forward price-to-earnings ratio falls below the company's ten-year historical average.

The price-to-book ratio tends to trade at a certain premium to net asset value, which can be interpreted as reflecting expectations for cosmetics export growth.

Dividends have been paid consistently each year, but given the company's growth-stock characteristics, valuation discussions tend to center more on earnings improvement and overseas business expansion than on dividend yield.

Such assessments, however, vary by brokerage estimate and timing and should not be treated as an absolute benchmark.

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 2026-09-04

Bull factors

High-Growth Cosmetics Exports

Centellian24's second-quarter overseas sales surged 566% year-on-year, and first-half overseas revenue rose 94.7% to KRW73.3 billion.

Expansion into major offline channels such as Costco, Ulta Beauty, and Nordstrom in the U.S., and Don Quijote, LOFT, and Matsumoto Kiyoshi in Japan, is shifting the business from an online-centric to a combined online-offline structure. Cosmetics export revenue is forecast to expand from about KRW30 billion in 2025 to over KRW100 billion in 2026.

Four Straight Years of Record Results and Margin Recovery

Consolidated revenue rose from KRW661.6 billion in 2022 to a record KRW926.9 billion in 2025, marking four consecutive years of new highs. The operating margin, which had dipped to 9.1% in 2023, recovered to 10.4% in 2025.

Analysts attribute the margin improvement to selling-expense efficiency gains and fixed-cost leverage from higher sales volume.

New Pipeline Based on the DDS Platform

The three-month Leuprorelin Depot formulation has completed Phase 3 trials with a 2027 launch target, positioning the company to enter a market estimated at roughly KRW80 billion domestically and about KRW5 trillion globally.

In preparation, the company is investing about KRW60 billion to expand production capacity 2.5-fold at its Jincheon plant, and an obesity drug candidate using the same microsphere platform is in preclinical development.

Bear factors

Deepening Cosmetics Dependence and Core-Identity Debate

As the share of pharmaceuticals in total revenue has declined sharply while cosmetics and healthcare have grown, some industry observers have raised concerns about the business 'losing its core identity.' Insadol, the market leader in gum-disease treatments, faces intensifying generic competition. R&D spending has also declined from the prior year, raising concerns about investment in new drug development.

Quarterly Net Income Volatility

In the fourth quarter of 2025 and the second quarter of 2026, owners' net income declined from the prior quarter despite solid revenue and operating profit. Analysts note that seasonal marketing costs, such as those tied to Amazon Prime Day, can affect margins in specific quarters. Such quarter-to-quarter variability can make it harder to read the underlying annual trend.

Execution Risk from Overseas Expansion

As the share of overseas revenue rises quickly, exposure to new variables such as exchange rates, tariffs, and negotiating leverage with distribution partners is also increasing. Domestic revenue grew only 4.1% in the first half, making the business structurally more dependent on overseas growth. If offline channel expansion does not proceed as planned, growth momentum could decelerate.

Risk factors

Generic and Competitive Pressure

Insadol, the market leader in Korea's gum-disease treatment segment for over 51 years, faces growth constraints from multiple generic launches and the presence of rival brand Egatan. Overall stagnation in the pharmacy retail market is also a structural burden for the OTC segment.

Regulatory and Certification Risk

As the government's certification criteria for innovative pharmaceutical companies shift toward quantitative metrics, insufficient new drug development or licensing achievements could put re-certification and drug pricing benefits at risk. Changes in ETC drug pricing policy are also a variable that could affect earnings.

Early-Stage Pipeline Risk

The three-month Leuprorelin Depot formulation is pre-launch and the microsphere-based obesity drug is in preclinical stage, leaving time and uncertainty before commercialization.

If the large-scale production capacity expansion does not translate into corresponding demand by its scheduled start date, there is a risk that investment payback could be delayed.

What to watch next

During Q3 2026
Check progress on additional U.S. major retailer listings and SKU expansion to gauge execution of the offline channel expansion strategy.
Around November 2026
Third-quarter 2026 earnings disclosures should reveal whether the company remains on track for KRW1 trillion in annual revenue and how cosmetics export targets are progressing.
Early 2027
The confirmed fourth-quarter and full-year 2026 results should confirm whether the company finally reached the 'KRW1 trillion revenue club' and the extent of operating margin improvement.
2027
Watch for domestic launch approval of the three-month Leuprorelin Depot formulation and initial market reception.
Second half of 2027
Verify whether the new Jincheon injectable production line begins operations as scheduled and assess its actual revenue contribution from expanded capacity.

Overall view

Dongkook Pharmaceutical has extended four straight years of record revenue and operating profit, combining a stable OTC base of Insadol and Madecassol with expanding overseas exports of Centellian24 cosmetics.

Multiple brokerages project 2026 consolidated revenue will surpass KRW1 trillion, with cosmetics export revenue rising rapidly.

However, quarterly volatility has appeared, with net income declining from the prior quarter in the fourth quarter of 2025 and the second quarter of 2026, alongside debate over the company's business identity amid deepening cosmetics and healthcare dependence and concerns over reduced R&D spending.

New pipeline assets such as the three-month Leuprorelin Depot formulation and a preclinical obesity drug candidate could become mid- to long-term growth drivers but remain at an early stage requiring time before commercialization.

The growing weight of overseas revenue represents both a growth opportunity and increased exposure to new variables such as exchange rates and distribution-partner negotiating leverage.

Overall, the company is navigating simultaneous earnings growth and business-structure transformation, with future quarterly results and the execution of overseas channel expansion likely to remain the key points to watch.

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.