PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Dongkook Life Science has shown margin improvement from raw-material in-house conversion and holds the leading position in Korea's contrast media market, but sharp declines in revenue and profit in the second quarter of 2026 have brought quarterly earnings volatility back into focus.
Annual operating margin steadily improved from 7.1% in 2023 to 9.0% in 2024 and 10.0% in 2025.
In Q2 2026, revenue fell roughly 27% quarter-on-quarter, operating profit was near zero, and net profit turned to a loss.
As an affiliate of Dongkook Pharmaceutical, the company runs contrast media, diagnostic equipment and medical device businesses, and listed on KOSDAQ in February 2025.
Through cooperation with Inventera, the company secured production and distribution rights for iron-based MRI contrast agent candidates INV-001 and INV-002 in Korea and overseas.
The debt ratio improved sharply from 160.7% in 2023 to 65.7% in 2025.
Dongkook Life Science was established in 2017 through a spin-off of Dongkook Pharmaceutical's contrast media business and listed on KOSDAQ in February 2025.
The company launched Korea's first generic contrast agent 'Pamiray' (iopamidol) and has maintained the top position in the domestic contrast media market with products such as the MRI contrast agent 'Unilay' (Gd-DOTA).
Based on 2025 data, segment revenue is estimated at roughly 51% from finished contrast media, 15% from contrast media API, 15% from diagnostic equipment, 13% from medical devices, and about 7% from other sources.
Since the second half of 2024 the company has produced and sold the iohexol finished drug 'Mediray,' and is pursuing a strategy of expanding the mix of in-house converted products through raw-material localization to lift profitability.
In its new drug pipeline, the company partnered with Inventera to secure domestic production and exclusive domestic/overseas distribution rights for the joint contrast agent candidate 'INV-002' (Phase 2b/3) and the lymphatic contrast agent candidate 'INV-001' (Phase 1/2a).
In medical AI, it distributes Vimworks' breast ultrasound AI diagnostic solution 'CadAI-B' and Lunit's AI-assisted image reading solution domestically, leveraging its contrast media sales network to expand its portfolio.
The largest shareholder is Dongkook Healthcare Holdings, part of the Dongkook Pharmaceutical group, which also holds affiliates such as Withnix (beauty devices) and Rebom Cosmetics (cosmetics ODM). Globally, the company competes on price and quality against major contrast media makers such as Bayer and GE Healthcare.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩34.9B | ₩3.2B | 9.2% |
| 2025Q3 | ₩29.4B | ₩4.3B | 14.5% |
| 2025Q4 | ₩31B | ₩2.5B | 7.9% |
| 2026Q1 | ₩33.1B | ₩3.4B | 10.4% |
| 2026Q2 | ₩24.3B | ₩21,875,369 | 0.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2023 | ₩120.2B | ₩8.5B | ₩4.2B | 7.1% | 6.1% | 160.7% |
| 2024 | ₩131.8B | ₩11.9B | ₩2.2B | 9.0% | 2.1% | 82.1% |
| 2025 | ₩130.3B | ₩13B | ₩8.7B | 10.0% | 6.6% | 65.7% |
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
On an annual basis, revenue rose from KRW 120.2 billion in 2023 to KRW 131.8 billion in 2024, then edged down to KRW 130.3 billion in 2025, entering a plateau.
Operating profit, by contrast, rose steadily from KRW 8.5 billion in 2023 to KRW 11.9 billion in 2024 and KRW 13.0 billion in 2025, lifting the operating margin from 7.1% to 9.0% to 10.0% over the period.
Net profit attributable to owners swung sharply, falling from KRW 4.2 billion in 2023 to KRW 2.2 billion in 2024 before recovering to KRW 8.7 billion in 2025.
Operating cash flow also fluctuated markedly, moving from negative KRW 4.6 billion in 2023 to a strong KRW 11.5 billion in 2024, then dropping back to roughly KRW 0.4 billion in 2025, indicating year-to-year variation in earnings quality.
On a quarterly basis, from Q2 2025 through Q1 2026 the company maintained relatively stable profitability, with revenue ranging between KRW 29.4 billion and KRW 34.9 billion and operating profit between KRW 2.4 billion and KRW 4.3 billion.
However, in Q2 2026 revenue fell to KRW 24.3 billion, down roughly 27% from the prior quarter's KRW 33.1 billion, operating profit shrank to about KRW 22 million, and net profit attributable to owners turned to a loss of roughly KRW 0.9 billion.
This stands in sharp contrast to the solid profitability seen over the preceding four quarters from Q3 2025 through Q1 2026. The debt ratio continued to decline from 160.7% in 2023 to 82.1% in 2024 and 65.7% in 2025, pointing to an improving financial structure.
Contrast media demand is directly tied to CT and MRI diagnostic imaging volumes, and the market is generally viewed as offering steady, if moderate, growth as populations age and regular health screenings expand.
In the domestic market, Dongkook Life Science has built a strength through its own generic product lineup, leveraging high-purity purification technology and price competitiveness, and has expanded partnerships based on a price advantage relative to global originator makers.
However, the company continues to compete against global players holding original contrast media brands, such as Bayer and GE Healthcare. It is pursuing export expansion through overseas approvals in markets such as Europe and Japan, which is seen as a potential offset to slower domestic market growth.
In the MRI contrast agent segment, amid ongoing safety concerns around existing gadolinium-based agents, the company's partnership with Inventera, which is developing an iron-based candidate, is cited as a point of differentiation.
The medical AI segment, where the company is trying to expand distribution of diagnostic assistance solutions through its existing contrast media sales network, remains at an early stage.
The company has outlined growth priorities for its contrast media business centered on improving product profitability, expanding its portfolio, strengthening new drug development and open innovation, and expanding global exports and production capacity.
On the cost side, converting iohexol raw material sourcing to in-house production is reportedly set to become possible from the second half of 2026, which, if realized, could support profitability for that product.
In its medical device and medical AI (MEMD) segment, the company has stated it will pursue building total patient solutions, expanding its AI portfolio, and an inorganic strategy involving partnerships or acquisitions.
On the production side, part of the IPO proceeds was allocated to expanding the finished-product line at the Anseong plant, aiming to raise capacity by more than 60% from prior levels with full-scale operation targeted by 2028, positioning the company to address medium-term demand.
The new drug pipeline candidates from Inventera, INV-002 (joint contrast imaging) and INV-001 (lymphatic contrast imaging), remain in clinical stages, meaning commercialization will take time, and clinical progress remains a variable that could affect enterprise value going forward.
However, the sharp decline in revenue and profit in Q2 2026 has not yet been publicly explained with a clear cause, and whether this pattern is temporary or a trend shift will need to be confirmed through subsequent quarterly results.
The current share price trades below net asset value on a book-value basis, meaning the market is applying a discount relative to net assets.
On the earnings side, the trailing four-quarter window includes a period where net profit fell sharply versus the annual run rate, so quarterly volatility should be factored in when interpreting earnings multiples. The company currently pays no dividend, so its appeal from a yield perspective is limited.
With both an improving operating margin trend from 2023 through 2025 and a sharp profit decline in the second quarter of 2026 coexisting, the valuation reflects two contrasting signals: structural improvement in the business and an unusual recent quarterly setback.
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
Operating margin improved for three consecutive years, from 7.1% in 2023 to 10.0% in 2025. Raw-material localization and an expanding mix of in-house converted products are understood to underpin this trend.
The debt ratio also fell sharply over the same period, from 160.7% to 65.7%, alongside improved financial stability.
Through its partnership with Inventera, the company holds domestic and international production and distribution rights for iron-based MRI contrast agent candidates INV-001 and INV-002.
While commercialization will take time, success could create a new revenue stream leveraging the existing contrast media distribution network.
An expansion of the finished-product line at the Anseong plant is underway, targeting production capacity more than 60% higher than before, with full-scale operation planned by 2028. Efforts to expand approvals in overseas markets such as Europe and Japan could also help offset slower domestic market growth.
In Q2 2026, revenue fell roughly 27% quarter-on-quarter, operating profit shrank to near zero, and net profit turned to a loss. This contrasts sharply with the stable profitability seen over the preceding four quarters, and the cause has not yet been clearly explained.
Net profit attributable to owners fluctuated significantly, falling from KRW 4.2 billion in 2023 to KRW 2.2 billion in 2024 before rising again to KRW 8.7 billion in 2025. Operating cash flow also swung widely, from negative in 2023 to a large surplus in 2024 and a modest surplus in 2025.
The company is classified as a small-cap stock and does not currently pay dividends under its shareholder return policy. Liquidity and share price volatility risks can be relatively larger compared with large-cap peers.
If quarters like Q2 2026, with sharp swings in revenue and profit, recur, earnings predictability could decline. It remains unconfirmed whether the cause is temporary or structural, warranting close monitoring of upcoming quarterly results.
New drug candidates such as INV-001 and INV-002 are in early-to-mid clinical stages, and the possibility of trial failure or delay cannot be ruled out. If clinical results fall short of expectations, related expectations could be reassessed.
Some contrast media raw materials are reportedly sourced through imports, meaning currency fluctuations can affect costs. Given the export component of the business, foreign currency volatility is also a variable that can affect results.
Q3 2026 earnings disclosures will help confirm whether the Q2 decline was temporary or reflects a deteriorating trend.
It is worth checking whether the planned in-house conversion of iohexol raw material actually occurs and whether it produces a profitability benefit.
Progress on overseas approvals such as gadobutrol and entry into new markets such as Japan should be monitored.
Ongoing clinical progress and result announcements for Inventera's INV-002 (Phase 2b/3) and INV-001 (Phase 1/2a) should continue to be monitored.
Dongkook Life Science has demonstrated structural strengths through its established position in Korea's contrast media market and operating margin improvement driven by raw-material localization.
At the same time, net profit has fluctuated significantly year to year, and in Q2 2026 revenue and profit contracted sharply, diverging from the stable pattern seen over the preceding four quarters.
The new drug pipeline, overseas approval efforts, and capacity expansion plans form the core of a medium-to-long-term growth story, but commercialization still requires time and successful clinical outcomes. The current share price trades at a discount to net asset value, and the company pays no dividend.
Whether the Q2 2026 earnings decline was a temporary factor or a trend shift is a key point that will need to be confirmed through subsequent quarterly results.
Overall, this is a phase where structural improvement signals coexist with an unusual recent earnings setback, warranting continued monitoring of quarterly results and pipeline progress.
Report written 2026-09-05 · Data as of 2026-09-04
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