PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩750 per share · Prices as of the 2026-10-02 close
NeoPharm is broadening its growth base beyond its domestic dermocosmetic core by expanding US Amazon and offline retail channels and adding a skin-booster new business.
2025 consolidated revenue reached KRW 132.18bn and operating profit KRW 28.77bn, up 11.1% and 16.7% year-on-year, respectively.
Q2 2026 revenue hit a quarterly record of KRW 43.57bn with operating profit of KRW 9.79bn.
Export share expanded from 11% in 2022 to 18% by Q3 2025, driven by US Amazon and offline channels such as TJX and H Mart.
The HILOWAVE skin-booster distribution rights secured in April 2025 generated first-ever sales above KRW 1 billion in Q2 2026.
In March 2026 the company disclosed a value-up plan targeting a 40-50% dividend payout ratio of standalone net income.
Founded in 2000 and listed on KOSDAQ, NeoPharm is a dermocosmetic company that built its brand portfolio sequentially starting with sensitive-skin brand Atopalm, followed by Zeroid, Dermabee, and Real Barrier.
Using its proprietary MLE formulation technology focused on skin barrier improvement, the company has maintained brand strength in the domestic sensitive-skin skincare market.
As of Q3 2025, product mix consisted of skincare (Atopalm, Zeroid) at 61%, facial care (Real Barrier) at 13%, body care (Dermabee) at 15%, and OEM and other at 10%.
On distribution, the company runs H&B stores such as Olive Young alongside hospital and clinic channels, with Zeroid strengthening its expertise in medical skincare through hospital distribution know-how.
Domestic sales still account for the majority of revenue by region, but the export share expanded from 11% in 2022 to 18% by Q3 2025, gradually diversifying the regional portfolio. Within exports, US Amazon along with offline channels such as TJX and H Mart, plus Asian and European distribution, are expanding together.
In April 2025, the company signed an exclusive domestic distribution agreement with Higher Corporation for the skin-booster product HILOWAVE, broadening into medical aesthetics by leveraging Zeroid's hospital and clinic distribution network.
Given its functionality- and repeat-purchase-driven dermocosmetic character, the business is viewed as relatively less sensitive to economic swings compared with trend-driven color-cosmetic brands.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32B | ₩7B | 21.9% |
| 2025Q3 | ₩32.2B | ₩6.8B | 21.0% |
| 2025Q4 | ₩36.4B | ₩7.2B | 19.8% |
| 2026Q1 | ₩36.2B | ₩8.7B | 24.0% |
| 2026Q2 | ₩43.6B | ₩9.8B | 22.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩85B | ₩21.4B | ₩17B | 25.2% | 12.0% | 9.2% |
| 2023 | ₩97.1B | ₩25.3B | ₩23.2B | 26.1% | 14.5% | 10.9% |
| 2024 | ₩119B | ₩24.7B | ₩23.1B | 20.7% | 13.0% | 8.8% |
| 2025 | ₩132.2B | ₩28.8B | ₩27.8B | 21.8% | 14.2% | 11.5% |
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
2025 consolidated revenue came to KRW 132.18bn, up 11.1% from KRW 119.01bn in 2024, while operating profit rose 16.7% to KRW 28.77bn and net income attributable to owners grew 20.6% to KRW 27.82bn.
The operating margin, which stood at a high 25.2% in 2022 and 26.1% in 2023, dipped to 20.7% in 2024 before recovering to 21.8% in 2025.
On a quarterly basis, revenue rose gradually from KRW 31.98bn in Q2 2025 to KRW 32.20bn in Q3 and KRW 36.40bn in Q4, then KRW 36.22bn in Q1 2026, before hitting a quarterly record of KRW 43.57bn in Q2 2026.
Q2 2026 operating profit reached KRW 9.79bn, with profitability actually improving despite higher advertising expenses.
In the same quarter, Amazon Prime Day sales reached KRW 2.8bn, and the new skin-booster business crossed the KRW 1 billion mark for the first time at KRW 1.4bn, signaling an emerging new growth driver.
Trailing four-quarter (Q3 2025-Q2 2026) net income attributable to owners totaled KRW 30.65bn, reflecting continued annual earnings growth alongside improving quarterly results.
From 2022 through 2025, net income attributable to owners moved from KRW 17.03bn to KRW 23.21bn, KRW 23.06bn, and KRW 27.82bn, broadly trending upward, while the debt ratio has been managed steadily in the 8-12% range.
The domestic cosmetics and beauty sector continued its boom in Q2 2026, with 79.1% of 86 surveyed companies posting revenue growth on the back of expanding K-beauty exports.
However, revenue growth did not translate uniformly into profitability improvement across the industry, as 26 companies remained in operating losses in Q2, highlighting a widening gap between growth companies and laggards.
Within this landscape, NeoPharm posted a Q2 2026 revenue growth rate of 36.2%, ranking 19th among surveyed companies, and a first-half growth rate of 25.5%, ranking 23rd, maintaining upper-tier growth.
Dermocosmetics are categorized as a segment with high repeat-purchase demand based on functionality such as skin-barrier repair and moisturizing, unlike trend-driven color cosmetics.
In terms of competitive structure, an ecosystem led by ODM/OEM players such as Cosmax and Kolmar Korea, global distributors such as Silicon2, and emerging brands such as APR and Dalba Global is driving growth, within which NeoPharm is differentiating itself through hospital/clinic channels and sensitive-skin positioning.
On overseas expansion, US Amazon and offline retail expansion (TJX, H Mart, Costco) are gaining momentum, with sales gains observed around promotional events such as Prime Day.
NeoPharm disclosed a value-up plan in March 2026, targeting a 40-50% dividend payout ratio of standalone net income while pursuing a growth strategy combining global expansion and R&D.
In the US market, in addition to expanding Amazon channels, the company is increasing placement across TJX's full store network and H Mart, while Costco is understood to be at the stage of moving from online-only sales toward SKU expansion.
The new skin-booster business, HILOWAVE, is distributed exclusively in Korea through Zeroid's established hospital and clinic network, and its Q2 2026 sales crossed the KRW 1 billion mark for the first time, entering an early-adoption phase.
The company stated it has built dedicated regional organizations for the Americas, Asia, and Europe, and pursued marketing efficiency through steps such as converting Zeroid's Amazon operations to direct management.
If this channel diversification and new-business expansion proceeds as planned, both a rising overseas revenue share and a more diversified brand portfolio are expected to progress together.
However, since the new business still accounts for a small portion of overall results, the pace at which its growth contribution becomes material needs to be confirmed through subsequent quarterly results.
NeoPharm's shares currently trade at a multiple above the 8-11x range on a 12-month forward basis that several brokerage reports referenced in the second half of 2025.
The price-to-book ratio similarly trades at a level reflecting a premium over net asset value, which can be interpreted against the backdrop of steadily rising profits in recent years.
On dividends, the March 2026 value-up plan targeted a 40-50% payout ratio of standalone net income, meaning future shareholder-return size may vary along with earnings trends.
Looking back over recent years, net income has never turned negative, instead showing a pattern of annual increases or modest plateaus consistent with a gradual recovery and growth trajectory.
How the current valuation level is assessed going forward may depend on the pace at which overseas channel expansion and the new skin-booster business are reflected in results.
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
The export share expanded from 11% in 2022 to 18% by Q3 2025, progressing regional portfolio diversification. US Amazon sales have been boosted through promotional events such as Prime Day, while offline placement across TJX's full store network and H Mart is also expanding. This channel diversification could work to reduce dependence on any single market.
Based on the HILOWAVE distribution rights secured in April 2025, a medical aesthetics business leveraging Zeroid's hospital and clinic network has begun. Skin-booster sales crossed KRW 1 billion for the first time in Q2 2026, forming an initial revenue base.
This adds a growth axis separate from the existing cosmetics business, contributing to portfolio diversification.
Revenue, operating profit, and net income broadly trended upward from 2022 through 2025, with quarterly results continuing to improve through the first half of 2026. The debt ratio has been kept low in the 8-12% range, underpinning financial stability. This financial structure could provide room to fund overseas expansion or new-business investment.
While the export share is rising, domestic sales still account for more than 80% of revenue, leaving the company sensitive to domestic consumption conditions or policy changes at specific channels such as Olive Young.
Brands with reliance on promotional channels such as home shopping and duty-free could be affected if domestic consumption slows.
Although export growth rates appear high, the absolute scale remains modest, and expanding US offline channels entails marketing and logistics costs. Skin-booster sales only just crossed the KRW 1 billion mark for the first time in Q2 2026, so their contribution to overall results remains limited for now.
The current trading multiple sits above the historical trading band that several brokerages referenced in the second half of 2025.
Sustaining this premium would require continued confirmation of earnings contribution from overseas channels and new businesses, and a multiple adjustment cannot be ruled out if growth momentum slows.
The HILOWAVE skin booster is approved as a Class IV medical device by Korea's Ministry of Food and Drug Safety, so changes in medical-device regulation or re-approval issues could affect the business.
As cosmetics exports expand, country-specific ingredient regulations or customs procedure changes could also become variables.
Both the dermocosmetic and skin-booster markets are seeing an increasing number of new entrants, which could intensify competition within the Olive Young channel and hospital/clinic channels.
In particular, established aesthetic-injectable companies have also entered the skin-booster market, raising the potential for intensified share competition.
Marketing costs such as advertising expenses may rise as overseas channels expand, and a growing export share could increase the earnings impact of currency fluctuations. Raw material price volatility could also add to cost burdens.
Around the statutory filing deadline for the Q3 report, Q3 2026 results are due to be disclosed, and it will be worth checking whether revenue and operating profit growth continues at the pace seen in Q2.
Progress on offline channel expansion at TJX, H Mart, and Costco in the US, along with year-end holiday shopping season sales performance, warrants monitoring.
The sales trajectory of the HILOWAVE skin booster and the pace of hospital/clinic channel expansion will be key indicators for gauging the new business's contribution.
At the annual general shareholders' meeting, the year-end dividend resolution will allow confirmation of whether the value-up plan disclosed in March 2026 (40-50% payout ratio) is being implemented.
NeoPharm has maintained broadly increasing revenue and profit from 2022 through 2025, underpinned by a stable brand portfolio comprising Atopalm, Zeroid, Real Barrier, and Dermabee.
Entering 2026, Q2 revenue and operating profit set quarterly records, extending the earnings improvement trend, with rising export share and expansion of US Amazon and offline channels emerging as one growth axis.
In addition, the medical aesthetics business built around the HILOWAVE skin-booster distribution rights secured in 2025 crossed KRW 1 billion in sales for the first time in Q2 2026, becoming visible as a new growth axis.
However, with domestic sales still accounting for more than 80% of revenue and the overseas and new-business scale still modest, further confirmation is needed on when their growth contribution becomes material.
The value-up plan disclosed in March 2026 set a 40-50% dividend payout target, signaling the direction of shareholder-return policy.
Overall, the situation combines bullish factors such as a stable financial structure, earnings growth, and overseas/new-business expansion with bearish factors such as domestic dependence and the early stage of new businesses.
Report written 2026-09-05 · Data as of 2026-09-04
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