KOSDAQBiotech & Pharma237690

St Pharm

₩93,000▼ 2.72%2026-10-02 close

Market Cap

₩1.9T

Turnover

₩5.8B

Volume

60,000 shares

Shares out.

20.9M

PER

27.0×

PBR

3.3×

EPS

₩3,743

Dividend Yield

0.49%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩500 per share · Prices as of the 2026-10-02 close

Report overview

Oligo Commercial Volumes Lift Profit; Cost Ratio Is the Variable

ST Pharm lifted its earnings base to KRW 331.7bn in revenue and KRW 54.9bn in operating profit in 2025 as commercial-stage oligonucleotide CDMO volumes were recognized, and while the top line kept expanding in the first half of 2026, quarterly operating margin slipped from the prior peak due to cost recognition on certain products.

1
2025 consolidated revenue was KRW 331.7bn with operating profit of KRW 54.9bn, an operating margin of 16.6%, up sharply from 7.2% in 2022 and 10.1% in 2024.
2
Second-quarter 2026 revenue of KRW 108.5bn was the second largest quarterly figure on record, but the 16.9% operating margin trailed the 20.3% of the fourth quarter of 2025; the company attributed this to a one-time recognition of fixed costs on a long-cycle product.
3
As of end-June the oligo order backlog stood at about USD 300mn, roughly 80% of it commercial projects, marking a shift from clinical-heavy to commercial-centric mix.
4
The debt-to-equity ratio fell from 74.6% in 2023 to 32.0% in 2025 and equity grew to KRW 593.0bn, but operating cash flow shrank from KRW 109.5bn in 2024 to KRW 14.0bn in 2025.
5
In-house HIV candidate STP0404 (pirmitegravir) showed statistically significant antiviral activity in US Phase 2a topline data, with detailed results scheduled for presentation at an international conference in October 2026.

Business structure

ST Pharm, part of the Dong-A Socio Group, is an active pharmaceutical ingredient and contract development and manufacturing company whose business spans oligonucleotide CDMO for RNA therapeutics, small-molecule new-drug CDMO and generic API contract manufacturing, newer areas such as mRNA, and in-house drug development.

The company's main segments are oligonucleotides, the core raw material for RNA therapeutics, small-molecule new-drug CDMO, generic CMO, and proprietary drug development.

Oligo is the revenue center: in the second quarter of 2026 the oligo division posted KRW 79.6bn in revenue, up 83% year on year, of which commercial projects accounted for KRW 49.7bn, or 62% of oligo sales.

In the same quarter the small-molecule division booked KRW 19.9bn as two commercial projects drove growth, KRW 2.0bn came from linkers for antibody-drug conjugates, and the division's backlog was about USD 50mn as of end-March.

The mRNA and related segment recorded KRW 0.1bn from early research projects, while subsidiary operations including the contract research organization grew 4.4% year on year to KRW 8.8bn.

Customers are global pharmaceutical companies and biotechs in the US and Europe, and in 2026 the company signed a USD 7.69mn oligo API supply contract with a US biotech, the third tranche of supply for a blood-cancer oligo drug after earlier orders in March and June.

Manufacturing is concentrated at the Banwol campus in Ansan, where Oligo Plant 1, built mainly around large lines, handles late-clinical and commercial volumes while Oligo Plant 2 houses small and mid-size lines, creating a chain from early clinical work through commercialization.

Market research firm MarketsandMarkets named ST Pharm among the key players in the global oligo CDMO market alongside Agilent Technologies of the US, Bachem of Switzerland and Thermo Fisher Scientific of the US.

Its most advanced proprietary asset is the HIV-1 candidate STP0404, and it has also pursued entry into new CDMO areas such as gene editing.

Earnings trend

Quarterly revenue · Operating profit

₩68.3B₩12.9B25Q2₩81.9B₩14.7B25Q3₩129.1B₩26.3B25Q4₩67B₩11.5B26Q1₩108.5B₩18.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩249.3B₩17.9B2022₩285B₩33.5B2023₩273.8B₩27.7B2024₩331.7B₩54.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩68.3B	₩12.9B	18.9%
2025Q3	₩81.9B	₩14.7B	18.0%
2025Q4	₩129.1B	₩26.3B	20.3%
2026Q1	₩67B	₩11.5B	17.2%
2026Q2	₩108.5B	₩18.3B	16.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩249.3B	₩17.9B	₩17.5B	7.2%	5.2%	67.3%
2023	₩285B	₩33.5B	₩19.6B	11.8%	5.1%	74.6%
2024	₩273.8B	₩27.7B	₩34.7B	10.1%	6.9%	43.5%
2025	₩331.7B	₩54.9B	₩55B	16.6%	9.3%	32.0%

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

On an annual basis revenue moved through a plateau of KRW 249.3bn in 2022, KRW 285.0bn in 2023 and KRW 273.8bn in 2024 before expanding to KRW 331.7bn in 2025, while operating profit went from KRW 17.9bn in 2022 to KRW 33.5bn in 2023, KRW 27.7bn in 2024 and KRW 54.9bn in 2025.

The operating margin rose from 7.2% in 2022, 11.8% in 2023 and 10.1% in 2024 to 16.6% in 2025; because profit grew faster than revenue, both fixed-cost leverage and a shift in product mix appear to have been at work.

Net profit attributable to owners expanded from KRW 17.5bn in 2022 to KRW 19.6bn in 2023, KRW 34.7bn in 2024 and KRW 55.0bn in 2025. Quarterly results swing widely with seasonality and shipment timing.

After revenue of KRW 81.9bn and operating profit of KRW 14.7bn (18.0% margin) in the third quarter of 2025 and a peak of KRW 129.1bn and KRW 26.3bn (20.3%) in the fourth quarter, the first quarter of 2026 pulled back to KRW 67.0bn and KRW 11.5bn (17.2%), followed by KRW 108.5bn and KRW 18.3bn (16.9%) in the second quarter of 2026.

Second-quarter 2026 revenue rose sharply from KRW 68.3bn a year earlier, when operating profit was KRW 12.9bn, yet the margin narrowed, and the company said this reflected a one-off effect from fixed costs on a long-cycle product being booked at once, adding that gross margin should improve in the second half as commercial sales increase and the large line at Oligo Plant 2 ramps up.

The balance sheet has clearly improved, with the debt-to-equity ratio falling from 74.6% in 2023 to 43.5% in 2024 and 32.0% in 2025, and equity reaching KRW 593.0bn at the end of 2025.

Operating cash flow, however, fell from KRW 109.5bn in 2024 to KRW 14.0bn in 2025, diverging from the profit trend, a reminder that working-capital needs typically rise for CDMOs during phases of expanding orders and shipments.

Industry analysis

Oligo CDMO demand is tied directly to the expansion of RNA therapeutic pipelines. MarketsandMarkets projects the global oligo CDMO market to grow from USD 3.88bn in 2026 to USD 11.14bn in 2031, a compound annual rate of 23.5% over five years.

Data cited from InsightAce Analytic and others indicate roughly 1,500 oligo-based programs in development, of which about 400 have reached clinical stages. A defining feature of this market is switching cost.

Because regulators strictly govern impurities and isomers generated during synthesis, changing manufacturers requires proving equivalence of the impurity profile, making supplier replacement difficult once a product is commercialized. Competition is head-to-head with large global players.

Capacity expansions by Agilent, numerous production lines at WuXi STA and a MilliporeSigma facility in Korea are rapidly increasing global therapeutic oligo output. Policy is another variable.

Some observers argue Korean CDMOs could benefit if the US Biosecure Act tightens restrictions on Chinese contract manufacturing, and it has been noted that even a delay in passage may still create openings as the industry trims its reliance on Chinese partners.

In a July 2026 article, Herald Business described ST Pharm as roughly the world's third-largest player in the oligo field.

Outlook

Management's stated direction is expanding commercial volumes while accumulating new orders. Since Oligo Plant 2 began operating, revenue has been generated from a total of 13 new projects, and after winning eight new projects in the first half of 2026 the company set a target of at least seven more in the second half.

As of end-June the oligo backlog was about USD 300mn, roughly 80% of it commercial projects.

In July the company signed a USD 7.99mn small-molecule API supply contract with a European global pharmaceutical firm, pushing cumulative backlog above KRW 500bn for the first time; that volume is the first tranche for 2027 with delivery due in October next year.

The company said it secured its first conjugation order in the second quarter, demonstrating high-difficulty synthesis capability.

On capacity, it plans to decide within 2026 whether and how much to expand using the remaining space at Oligo Plant 2, including line configuration, and is reported to favor internal cash and policy funds over rights offerings or convertible bonds.

In drug development, topline Phase 2a data for STP0404 has been received and is scheduled for presentation at an international conference in October 2026.

On the brokerage side, IBK Securities said in a July 28, 2026 report that although second-quarter operating profit missed market expectations because of one-off cost burdens, the annual growth trajectory was unchanged, and it maintained a buy rating with a target price of KRW 200,000.

In the same report the analyst said he expects 2026 consolidated revenue of KRW 418.6bn and operating profit of KRW 79.3bn, up 26.2% and 44.4% year on year respectively (a brokerage estimate, not official company guidance).

Valuation

PER

27.0×

PBR

3.3×

ROE

13.6%

EPS

₩3,743

BPS

₩30,235

Dividend per share

₩500

ST Pharm's trading multiples need to be read separately for the period when absolute profits were small and the period after the recent profit recovery.

Mirae Asset Securities said in a December 2025 report that the shares were then trading below their three-year average price-to-earnings multiple of 69 times and that valuation burden should ease as earnings rise.

Comparing the profit scale of 2022 through 2024 with the enlarged profit base from 2025 onward, the earnings-based multiple at any given share price has shifted below the elevated band formed in the past.

Relative to net assets, however, the stock still trades at a premium, consistent with the tendency of the KOSDAQ pharmaceutical sector to weight growth potential.

The dividend is a modest cash payout and the dividend yield sits below the sector average, reflecting a structure in which much of the profit is reinvested into facilities and research and development.

Ultimately the justification for current multiples rests on whether a rising share of commercial projects and the room for margin improvement from Oligo Plant 2 show up in reported results, and the wide swings in quarterly results driven by shipment schedules add uncertainty to any multiple-based interpretation.

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

Profit Leverage From a Rising Commercial Mix

The 16.6% operating margin in 2025 stands clearly above 10.1% in 2024 and 7.2% in 2022, and in the fourth quarter of 2025 revenue of KRW 129.1bn produced KRW 26.3bn in operating profit, a quarterly margin of 20.3%.

In the second quarter of 2026 commercial projects made up 62% of oligo revenue, and analysts noted that growth was led by the ramp-up in revenue recognition of commercial products, which are larger in scale and more durable than clinical volumes.

Commercial volumes tend to involve repeat orders, which is cited as support for utilization rates and margin floors.

Record Backlog and a More Diversified Portfolio

In July 2026 an order from a European global pharmaceutical company pushed ST Pharm's cumulative backlog above KRW 500bn for the first time, extending its reach from oligos into small-molecule new-drug APIs. Within small molecules, revenue from linkers for antibody-drug conjugates has also begun to appear.

The company secured its first conjugation order in the second quarter and said it expects additional orders in various formats going forward. Broader product diversification can work to dampen the quarterly volatility that stems from dependence on a single customer or product.

Stronger Balance Sheet and Expansion Capacity

The debt-to-equity ratio fell from 74.6% in 2023 to 43.5% in 2024 and 32.0% in 2025, with equity of KRW 593.0bn and total liabilities of KRW 189.6bn at the end of 2025.

The company is reported to be weighing funding for any expansion toward internal cash and policy funds rather than rights offerings or convertible bonds that could dilute shareholders. Oligo Plant 2 is already running near full utilization, providing a demand-side signal behind the expansion decision. The actual funding method and scale, however, must be confirmed through formal disclosure.

Bear factors

Wide Swings in Quarterly Results

Quarterly revenue jumped from KRW 68.3bn in the second quarter of 2025 to KRW 129.1bn in the fourth quarter, fell back to KRW 67.0bn in the first quarter of 2026, then rose again to KRW 108.5bn in the second quarter. Such swings depend heavily on customer shipment schedules and the timing of recognition by product.

Indeed, commercial volumes originally due to ship in the first quarter of 2026 slipped to April, deferring the revenue recognition. The difficulty of reading a trend from any single quarter remains a persistent drawback.

Rising Cost Ratio and Uncertain Margin Defense

The 16.9% operating margin in the second quarter of 2026 is below the 20.3% of the fourth quarter of 2025 and the 18.0% of the third quarter of 2025. The company explained that the cost ratio rose temporarily because fixed costs on some long-cycle products were booked all at once.

An IBK Securities analyst noted that confirmation of a profitability recovery in the third quarter would make it clearer that the cost increase was a one-off. Conversely, if the cost ratio stays elevated in the third quarter, the one-off explanation loses force, leaving margins still to be verified.

Capacity Additions by Global Rivals and Price Pressure

Global therapeutic oligo capacity is expanding quickly through Agilent's expansion, numerous WuXi STA production lines and a MilliporeSigma facility in Korea. If supply grows alongside demand, pressure on pricing and utilization can emerge.

ST Pharm is classified among the key players alongside Agilent, Bachem and Thermo Fisher, which also means it competes with far better-capitalized rivals. The risk that the timing of its own expansion misaligns with the demand cycle should be weighed as well.

Risk factors

Customer Concentration and Pipeline Dependence

Revenue is tied to a small number of commercial products and to the clinical and sales performance of specific customers. For a single blood-cancer oligo drug, delivery amounts for 2026 accumulated through a third contract tranche.

Weak sales, failed indication expansions or clinical discontinuations at customers could shrink or eliminate those volumes. Even as backlog grows, the timing of recognition and actual shipment remain separate variables.

Foreign Exchange and Export Structure

Because ST Pharm's core products are export-oriented RNA oligos, currency moves are seen as feeding directly into revenue and operating profit. In periods of won strength, the same volumes translate into lower won-denominated revenue and profit.

As contracts are denominated in dollars, the gap between contract date and recognition date is another variable. Since exchange rates are outside the company's control, they warrant separate consideration when interpreting results.

Drug Development and Regulation

In a Phase 2a trial of 36 US adults, STP0404 showed statistically significant antiviral activity versus placebo across the 200mg, 400mg and 600mg dose groups.

This is nonetheless a small early-stage result, and follow-on trials, a successful licensing deal and commercialization would require considerable time and additional cost.

The company has indicated it would accelerate licensing discussions after securing high-dose data, but the outcome of such talks is not a settled fact. On the regulatory side, policy variables such as the Biosecure Act remain uncertain in both direction and timing.

What to watch next

September 8, 2026
ST Pharm will host the RNA Innovation Symposium Corea 2026 at the El Tower in Yangjae, Seoul. The event shares RNA therapeutics industry trends and the company's technology and pipeline direction, offering a chance to check for any mention of new partnerships.
October 2026
Detailed Phase 2a topline results for the HIV candidate STP0404 are scheduled for presentation at an international conference. Key items to check are the consistency of high-dose data, the safety profile, and any progress in subsequent licensing discussions.
Late October to early November 2026
Third-quarter 2026 results. The key check is whether the cost-ratio increase the company described as temporary in the second quarter reverses, that is, whether gross and operating margins move back toward the 18.0% to 20.3% range seen in the third and fourth quarters of 2025.
Fourth quarter of 2026 (within the year)
The company plans to finalize within the year whether to expand capacity using the remaining space at Oligo Plant 2, along with scale, line configuration, investment size and funding method. Whether it uses internal cash or external financing will determine the degree of shareholder dilution and depreciation burden.
Throughout the second half of 2026
Progress can be tracked through individual supply-contract disclosures: whether the company meets its stated target of at least seven new project wins in the second half and how the oligo backlog of about USD 300mn at end-June and its roughly 80% commercial share evolve.

Overall view

ST Pharm's recent years can be summarized as a shift in its oligo CDMO business from clinical-heavy to commercial-heavy volumes.

Annual results expanded from KRW 273.8bn in revenue and KRW 27.7bn in operating profit in 2024 to KRW 331.7bn and KRW 54.9bn in 2025, lifting the operating margin to 16.6%, while the debt-to-equity ratio fell to 32.0%.

Moving into 2026, second-quarter revenue rose to KRW 108.5bn but the operating margin of 16.9% trailed the 20.3% of the fourth quarter of 2025, with the company citing a one-time recognition of fixed costs on certain products.

The bullish case rests on an oligo backlog of about USD 300mn at end-June with roughly 80% from commercial projects, a cumulative backlog that topped KRW 500bn for the first time, and room for utilization and margin improvement as Oligo Plant 2 ramps up.

The bearish case rests on wide quarterly swings driven by shipment timing, a cost ratio whose normalization is not yet confirmed, and simultaneous capacity additions by global competitors.

On valuation, the earnings-based multiple has moved below the elevated band of the past following the profit recovery, while a premium to net assets persists and the dividend yield is on the low side.

Four items therefore frame future assessment: margin restoration in the third quarter, the count of new orders in the second half, the expansion and funding decision, and the detailed STP0404 data. This report is for informational purposes and contains no buy or sell recommendation.

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.