KOSDAQBiotech & Pharma309710

It-chem

₩21,000 0.00%2026-10-02 close

Market Cap

₩268.4B

Turnover

₩0

Volume

0 shares

Shares out.

12.8M

PER

—

PBR

4.5×

EPS

-₩1,503

Dividend Yield

0.00%

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

Report overview

Peptide API Hopes Meet Consolidated Losses

ITChem holds two growth narratives—oral GLP-1 peptide active pharmaceutical ingredients and OLED materials—but its consolidated operating profit swung to a loss in 2025 and has posted four consecutive quarters of operating losses.

1
2025 consolidated revenue rose to roughly KRW 62.0 billion, but operating profit swung from about KRW 3.6 billion to an operating loss of about KRW 1.85 billion.
2
Operating losses continued for four straight quarters from Q3 2025 through Q2 2026, with net losses attributable to owners totaling about KRW -17.7 billion over that window.
3
A new GMP-certified pharmaceutical plant in Goesan targets completion by year-end 2026 and full operation from 2027, funded partly by a KRW 40 billion convertible bond.
4
ITChem has a supply contract with SK Biotek for APIs and intermediates running from February 2026 to May 2027, reportedly equal to about 16.2% of recent revenue.
5
Early financial investors Oculus No.1 Private Equity Fund and Paratus Investment reportedly sold down or fully exited their stakes during 2026.

Business structure

Founded in 2005, ITChem is a precision chemical materials company operating a contract development and manufacturing (CDMO) business built on two pillars: active pharmaceutical ingredients (APIs)/intermediates and OLED display materials.

Its pharmaceutical lineup targets chronic-disease treatments, including the type 2 diabetes intermediate 'BCBB,' the GERD material 'FOMN,' the hyperlipidemia API 'EZM,' the antiviral material 'OP,' and the reflux esophagitis material 'C-SOS.' The electronic materials segment supplies OLED hole-transport-layer material 'Green Prime BBNF' and others to four first-tier display vendors affiliated with Samsung and LG, with CPI film for foldable smartphones also historically contributing to revenue.

According to standalone figures disclosed at IPO for 2024, pharmaceutical raw materials and intermediates accounted for roughly 61% of revenue and display/electronic materials for about 39%.

The customer base is fairly concentrated, with IPO filings showing exposure to a single customer, referred to as Customer A, in the 30%-plus range of total revenue.

The company supplies the diabetes-drug raw material 'BCBB' as a partner to SK Biotek, and it signed a supply contract with SK Biotek for APIs and intermediates in late 2025 that runs from February 2026 to May 2027.

More recently, ITChem has been building production capability for oral small-molecule peptide therapeutics, aiming to enter the supply chain for obesity and diabetes drug raw materials, while also diversifying through the acquisition of a stake in waste-material recycler Key-E Engineering to add circular-economy elements to its CDMO business.

The largest shareholder is affiliated with Q Investment Group, and early financial investors from the IPO stage—Oculus No.1 Private Equity Fund and Paratus Investment—reportedly sold down or fully divested their stakes during 2026.

Earnings trend

Quarterly revenue · Operating profit

25Q2₩27.2B-₩1.2B25Q3₩200M25Q4₩12.7B-₩1.7B26Q1₩15.1B-₩2.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩49.1B₩3.6B2024₩62B-₩1.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	—	—	—
2025Q3	₩27.2B	-₩1.2B	−4.4%
2025Q4	—	₩200M	—
2026Q1	₩12.7B	-₩1.7B	−13.6%
2026Q2	₩15.1B	-₩2.8B	−18.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2024	₩49.1B	₩3.6B	₩11.5B	7.3%	24.6%	134.3%
2025	₩62B	-₩1.9B	-₩14.3B	−3.0%	−21.9%	177.3%

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

ITChem's 2025 consolidated revenue was about KRW 62.0 billion, up 26% from roughly KRW 49.1 billion in 2024, but operating profit swung from about KRW 3.6 billion (operating margin 7.3%) in 2024 to an operating loss of about KRW 1.85 billion (operating margin -3.0%) in 2025.

Net income attributable to owners also flipped from about KRW 11.5 billion in 2024 to a loss of about KRW 14.3 billion in 2025, widening earnings volatility.

On a quarterly basis, Q3 2025 revenue was relatively strong at about KRW 27.2 billion but still produced an operating loss of roughly KRW 1.2 billion, while Q1 2026 revenue fell sharply to about KRW 12.7 billion as the operating loss widened to about KRW 1.7 billion.

Q2 2026 revenue recovered to about KRW 15.1 billion versus the prior quarter, yet the operating loss actually widened further to about KRW 2.8 billion. Net losses attributable to owners peaked at about KRW 8.4 billion in Q4 2025 before narrowing to about KRW 4.3 billion in Q1 2026 and about KRW 1.5 billion in Q2 2026.

Over the most recent four quarters (Q3 2025 through Q2 2026), the sum of net losses attributable to owners was about KRW -17.7 billion, which appears to reflect the combined effect of newly consolidated subsidiaries and fixed-cost burdens from new facility investment.

Operating cash flow was negative in both 2024 and 2025, indicating that a recovery in cash generation has not yet been confirmed independent of the profit figures.

The debt ratio rose from 134.3% in 2024 to 177.3% in 2025, reflecting the changed financial structure from new plant investment and the convertible bond issuance.

Industry analysis

Oral small-molecule peptide therapeutics are drawing attention as the next-generation formulation for GLP-1 class obesity and diabetes drugs, and the topic was a key agenda item for global pharmaceutical companies at the January 2026 JP Morgan Healthcare Conference.

As expectations grow for commercialization of oral formulations, which offer greater dosing convenience than injectables, demand is also rising for CDMO partners capable of stably mass-producing the related APIs and intermediates.

ITChem is exposed to this trend as a raw-material supply partner to SK Biotek, and the possibility of expanded raw-material supply opportunities has been raised in the context of SK pharmteco preparing obesity-drug contract manufacturing for global pharmaceutical clients at its Sejong facility.

Domestically, competitors specializing in peptide and oncology CDMO, such as KSBL, a joint venture between Kukjeon Pharmaceutical and S&Bio Science, are also active, forming a competitive landscape in the high-value-added API market.

In display materials, ITChem's technology credentials are underscored by an investment from a venture-capital affiliate of Universal Display Corporation (UDC), the world's largest OLED materials company, and it has secured first-tier display vendors affiliated with Samsung and LG as customers.

However, the display materials market carries volatility tied to smartphone and foldable-device demand cycles, and the share of CPI film in ITChem's revenue is understood to have declined from prior levels.

The broader precision chemical materials industry is characterized by low-volume, multi-product manufacturing with few dominant players, which presents small and mid-cap CDMO firms like ITChem with both concentration risk on specific customers or items and opportunities for new entry.

Outlook

ITChem is building a GMP-certified pharmaceutical-dedicated plant in Goesan, Chungcheongbuk-do, using IPO proceeds and funds from a KRW 40 billion convertible bond, intended for producing high-value APIs including oral small-molecule peptide therapeutics.

Multiple market reports indicate the plant targets completion by the end of 2026, with full-scale operation planned from 2027. In an August 2025 interview with TheBell, the company said it expects fixed-cost burdens to ease and revenue and profit contribution to expand once the new plant comes online.

At the same time, the company stated it expected API revenue to expand significantly starting in the fourth quarter of 2026, though this reflects the company's expectation at that point in time and requires further confirmation as events unfold.

ITChem's supply contract with SK Biotek for APIs and intermediates runs from February 2026 to May 2027, with a contract value of about KRW 10.07 billion, reportedly equivalent to about 16.2% of recent revenue.

The company also announced a strategic memorandum of understanding with U.S. venture capital firm Adelphi Ventures and plans to establish a U.S. subsidiary within the year to expand its CDMO business into the North American biotech market.

In the display segment, the company aims to strengthen its position in the high-purity OLED materials market using sublimation purification equipment.

Valuation

PER

—

PBR

4.5×

ROE

-33.5%

EPS

-₩1,503

BPS

₩4,629

Dividend per share

₩0

With net losses attributable to owners summing to a deficit over the most recent four quarters, an earnings-based price-to-earnings interpretation is difficult to apply to ITChem at this stage.

The stock trades at a premium to net asset value, which can be read as reflecting market expectations tied to future growth narratives such as the new plant coming online and entry into the GLP-1 oral peptide raw-material market.

The company has not paid cash dividends recently, limiting comparisons on a dividend-yield basis. Given the swing from a profit in 2024 to a consolidated loss from 2025 onward, how the market values the stock going forward is likely to hinge on the pace of revenue and profit recovery once the new plant is operational.

Investors may want to focus less on the absolute level of the net-asset trading multiple and more on whether an actual revenue and profit turnaround materializes after the Goesan plant is completed.

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

Growing Demand for GLP-1 Oral Peptide Raw Materials

Oral small-molecule peptide therapeutics are gaining attention as a next-generation formulation in the obesity and diabetes drug market, and ITChem, as a top-priority partner to SK Biotek, is exposed to related raw-material supply opportunities.

The company has expanded its peptide-structure synthesis technology built on small-molecule chemical synthesis process capabilities and plans to increase related production capacity through its new GMP plant.

Market commentary has also raised the possibility of a link to SK pharmteco's expanding contract manufacturing of obesity drugs for global pharmaceutical companies.

External Validation of OLED Materials Technology

ITChem received the first Asia-region investment from a venture-capital affiliate of Universal Display Corporation (UDC), the world's largest OLED materials company, a recognition of its technological capability.

It counts four first-tier display vendors affiliated with Samsung and LG as customers and is pursuing high-purity materials development using sublimation purification technology. This can be seen as part of a diversification strategy aimed at building a separate growth pillar alongside the pharmaceutical business.

Capacity Expansion Backed by Large-Scale Funding

The company is building a GMP-certified pharmaceutical-dedicated plant in Goesan, Chungcheongbuk-do, using IPO proceeds and funds from a KRW 40 billion convertible bond issuance.

Reports indicate the CB was subscribed by a large domestic hedge fund, a value-investing asset manager, and an overseas strategic investor, suggesting the funding was relatively stable. If the new plant is completed and operated as planned, fixed-cost pressure could ease along with a revenue contribution.

Bear factors

Persistent Consolidated Losses

Consolidated operating profit swung from a profit to a loss in 2025, and operating losses continued for four straight quarters from Q3 2025 through Q2 2026. Net losses attributable to owners were also substantial in aggregate over the same period, with the loss particularly large in Q4 2025. Despite revenue growth, a structure in which profitability fails to keep pace has persisted.

Earnings-Structure Complexity from Diversification

ITChem has expanded beyond its core CDMO business through moves such as acquiring a stake in waste-material recycler Key-E Engineering, and capital-market commentary has suggested this expansion may add earnings-structure complexity rather than clear synergy with its existing materials business.

Greater transparency is needed on how the newly consolidated subsidiaries' results flow into consolidated profit and loss. Results from the diversification strategy may take time to become visible.

Early Investor Exits and Potential Dilution

Oculus No.1 Private Equity Fund and Paratus Investment, major early financial investors from the IPO stage, reportedly sold down or fully divested their stakes during 2026. Around the same period, a KRW 40 billion convertible bond was issued, which could become a dilution factor if converted into shares in the future.

Overlapping early-investor exits and new mezzanine issuance are altering the supply-demand structure of the stock.

Risk factors

Customer Concentration Risk

IPO filings indicate that ITChem's pharmaceutical intermediate revenue is heavily dependent on a single major customer. Changes in that customer's order volumes or purchasing policies could directly affect revenue. Progress on customer diversification warrants ongoing monitoring.

Risk of Delayed Return on Capital Investment

The new Goesan plant follows a structure where large capital investment precedes revenue contribution, meaning fixed-cost and depreciation burdens could be recognized first if the completion or operation schedule slips.

Various reports have cited somewhat differing target timelines for completion and start-up, making confirmation of the actual schedule important. If initial yields and utilization fall short of expectations, profit recovery could be delayed.

Small-Cap Supply-Demand Volatility

As a small-cap KOSDAQ stock, ITChem has relatively limited free float, and reports have cited instances of sharp share-price swings tied to shifts in foreign and institutional flows. If potential share overhang from the convertible bond coincides with early-investor share sales, supply-demand pressure could intensify. Such volatility can operate independently of underlying earnings fundamentals.

What to watch next

Around November 2026 (expected Q3 report filing)
Check the pace of revenue recovery and whether the operating loss narrows in the Q3 2026 consolidated results. The key point to watch is whether the net-loss narrowing trend seen through Q2 2026 continues.
Late 2026
Verify whether the GMP-certified pharmaceutical plant in Goesan is completed and confirm the actual start-up schedule. Any delay in completion could also push back the expected 2027 revenue contribution.
Within 2026
Track progress on establishing a U.S. subsidiary tied to the Adelphi Ventures collaboration. It is important to see whether concrete results, such as new customer wins, emerge from the North American CDMO expansion.
Through May 2027
Monitor execution of the API and intermediate supply contract with SK Biotek and whether it is renewed or expanded. It is also worth tracking how the contract's share of total revenue changes over time.
Around Q4 2026
Check whether the company's projected expansion in API revenue tied to the new plant's start-up actually materializes. The key question is whether the expectations expressed in the company's second-half-2025 disclosures are realized.

Overall view

ITChem is a small and mid-cap precision chemical CDMO company carrying two concurrent growth narratives: oral GLP-1 peptide APIs and OLED materials. 2025 consolidated revenue rose year over year, but operating profit swung from a profit to a loss, and operating losses continued for four consecutive quarters from Q3 2025 through Q2 2026, increasing earnings volatility.

The company is directing IPO proceeds and convertible bond funding into building a new plant in Goesan, and it maintains that API revenue expansion is expected once completion and start-up proceed as planned, though this outlook has not yet been confirmed in actual results.

The supply contract with SK Biotek, the investment from UDC, and the collaboration with Adelphi Ventures for U.S. market entry are factual bases for business expansion, but early-investor share sales, potential dilution from the convertible bond, and earnings-structure complexity from diversification are points that warrant attention.

On balance, whether earnings turn around following the new plant's start-up appears to be the key variable shaping the company's future trajectory. This report is provided for informational purposes only and does not include a buy or sell recommendation; readers should form their own individual judgments.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

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.