PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
RP Bio, a soft-gel-centered CDMO company, swung from a 2024 loss to a 2025 profit, and the earnings recovery has continued through the first half of 2026.
2025 consolidated revenue reached KRW 136.2 billion with operating profit of KRW 5.1 billion, swinging from the prior year's loss to a profit.
Q2 2026 operating profit of KRW 4.1 billion marked the highest level among the most recent five quarters.
The company has held the No.1 position in Korea's OTC soft-gel capsule market for three consecutive years, with the health supplement segment accounting for more than half of revenue.
The Mado plant received a VAI rating in a 2026 U.S. FDA on-site inspection, establishing a foundation for direct overseas exports.
The debt ratio has steadily declined from 90.0% in 2022 to 45.8% in 2025.
RP Bio operates a contract development and manufacturing (CDMO) business centered on pharmaceuticals and health supplements. The company handles the entire process from customer product planning and formulation development through manufacturing and quality control, supplying all products on an OEM/ODM basis.
It runs automated smart manufacturing lines centered on its Hyangnam and Mado plants in Hwaseong, Gyeonggi Province, with combined annual production capacity of roughly KRW 280 billion in value terms across OTC drugs and health supplements.
As of 2024, revenue was split 58.0% health supplements, 41.5% pharmaceuticals, and 0.5% other, making supplements the larger revenue driver. The company traces its roots to a 1983 joint venture between Daewoong Pharmaceutical and U.S. soft-gel specialist R.P.
Scherer, was spun off from RP Corp in 2016 to form RP Bio, and listed on KOSDAQ in 2022. According to the company's own investor presentation, its domestic soft-gel capsule market share stood at 53% as of the first quarter of 2025, maintaining an unrivaled No.1 position in the domestic OTC soft-gel market.
The company has expanded into higher value-added formulations such as blister jelly, jelly sticks, and sustained-release vitamin C, built on proprietary patented formulations including NeoNeoSol and NeoNeoGel.
Its customers include domestic and overseas pharmaceutical companies and supplement brands, and competitive intensity in the individually-recognized functional ingredient segment is expected to rise as distributors increasingly secure their own functional ingredients to plan and launch products directly.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩35.7B | ₩2.3B | 6.5% |
| 2025Q3 | ₩33.2B | ₩300M | 0.8% |
| 2025Q4 | ₩33.3B | ₩700M | 2.1% |
| 2026Q1 | ₩35.1B | ₩2.4B | 6.9% |
| 2026Q2 | ₩39.8B | ₩4.1B | 10.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩138.1B | ₩9.6B | ₩4.3B | 7.0% | 4.7% | 90.0% |
| 2023 | ₩151B | ₩6.6B | ₩5.4B | 4.4% | 5.3% | 61.8% |
| 2024 | ₩124B | -₩700M | -₩900M | −0.6% | −0.9% | 55.9% |
| 2025 | ₩136.2B | ₩5.1B | ₩4.7B | 3.7% | 4.4% | 45.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
2025 consolidated revenue rose to KRW 136.2 billion from KRW 124.0 billion in 2024, with operating profit of KRW 5.1 billion and owner net income of KRW 4.7 billion, marking a clear swing from the prior year's operating loss of KRW 0.7 billion and net loss of KRW 0.9 billion.
The 2024 loss stemmed from weak end-demand combined with cost pressures, and in 2025 the operating margin recovered from -0.6% to 3.7% alongside revenue growth.
Still, compared with 2023 (revenue KRW 151.0 billion, operating profit KRW 6.6 billion, margin 4.4%) or 2022 (revenue KRW 138.1 billion, operating profit KRW 9.6 billion, margin 7.0%), absolute profit levels remain below the company's past peak.
On a quarterly basis, operating profit bottomed at KRW 0.27 billion in Q3 2025 before improving for four consecutive quarters to KRW 0.68 billion in Q4 2025, KRW 2.4 billion in Q1 2026, and KRW 4.1 billion in Q2 2026.
Q2 2026 revenue of KRW 39.8 billion was the largest among the last five quarters, with the operating margin exceeding 10%, showing a clear operating leverage effect at the quarterly level. Owner net income likewise expanded from KRW 0.28 billion in Q3 2025 to KRW 2.6 billion in Q1 2026 and KRW 3.0 billion in Q2 2026.
On the balance sheet side, the debt ratio has fallen every year from 90.0% in 2022 to 61.8% in 2023, 55.9% in 2024, and 45.8% in 2025, while operating cash flow has stayed at a stable level, rising from KRW 1.2 billion in 2022 to KRW 10.6 billion in 2023, KRW 13.5 billion in 2024, and KRW 12.5 billion in 2025. Overall, this profile suggests revenue growth and margin recovery proceeding together from the 2024 trough.
RP Bio's end markets are broadly split between OTC pharmaceuticals and health supplements.
Korea's total pharmaceutical production expanded from KRW 16.97 trillion in 2015 to KRW 32.86 trillion in 2024, a compound annual growth rate of 7.62%, with both finished drugs and active pharmaceutical ingredients roughly doubling over the period.
By contrast, the health supplement market is viewed by the industry as being in a stagnation phase, with annual growth in the low single digits or near zero in recent periods.
Even so, domestic pharma and bio companies have continued to expand investment in supplement production facilities to secure reliable cash-generating businesses and establish a foothold for overseas exports.
RP Bio has held the No.1 position in soft-gel capsule manufacturing for roughly four decades and positions itself as the sole domestic company carrying on the original technology of America's R.P. Scherer.
However, as distributors increasingly secure their own functional ingredients to plan and launch products directly, competitive intensity in the individually-recognized functional ingredient segment is expected to rise, which could act as both a near-term competitive risk and a medium-to-long-term opportunity to win new customers for CDMO players like RP Bio.
In the pharmaceutical segment, an expansion of the Ministry of Food and Drug Safety's standard manufacturing criteria (raising maximum acetaminophen dosage, adding ingredients for cold and rhinitis medicines) is cited as a factor that could drive an increase in renewed product listings.
RP Bio announced in June 2026 that its Mado health supplement plant received a Voluntary Action Indicated (VAI) rating and officially passed a U.S.
FDA on-site inspection, and outlined plans to expand B2B sales efforts targeting major domestic and international pharmaceutical companies and global brands on the back of this milestone.
The company said it would make its first appearance at 'Vitafoods Asia 2026' in Bangkok, Thailand in September 2026, laying out a strategy to shift from indirect exports via domestic pharmaceutical companies toward a direct-export structure by securing overseas buyers directly.
At the event, the company plans to showcase patented new formulations such as NeoNeoGel soft-gel capsules with extended 36-month shelf life, blister jelly, and jelly sticks, positioned as competitive products optimized for Asia's hot and humid climate.
On the new product pipeline, the company has begun initial mass production of a product using a turmeric extract ingredient (SLCP™) recognized by the Ministry of Food and Drug Safety for supporting cognitive function affected by aging, with a formal launch planned for September.
Earlier, in the second half of 2025, the company laid out a mid-to-long-term direction to redefine magnesium as a multifunctional platform ingredient and expand the share of magnesium-based product development by more than 300% by 2030.
If this expansion of new formulations and ingredients, along with the shift to direct overseas exports, proceeds as planned, there is room for the supplement segment's revenue contribution to rise further, though actual overseas order contracts and their scale have not yet been confirmed.
RP Bio's share price has moved through periods of gains driven by expectations around new plant capacity expansion as well as periods of weak end-demand and broader equity market softness, and it is currently seen as being in a recovery phase alongside the ongoing earnings turnaround.
The price-to-book ratio trades at a discount to net asset value, and some assessments place it closer to the lower end than the upper end of the trading band observed since listing.
On the earnings side, the swing from a loss in 2024 to a profit in 2025, followed by continued improvement through the first half of 2026, makes the relationship between the pace of earnings recovery and the share price an important point to monitor.
Dividends have been paid annually but at a modest absolute level, suggesting that dividend yield alone should not be the sole basis for assessing investment appeal, and should instead be weighed together with the durability of the earnings recovery.
Views on valuation levels may differ across brokerages, and this could shift depending on how quickly the expansion of individually-recognized ingredients and direct overseas exports materializes.
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 2026-08-23
Following the annual profit swing in 2025, operating profit improved for four consecutive quarters, reaching KRW 2.4 billion in Q1 2026 and KRW 4.1 billion in Q2 2026. This suggests the weak end-demand and cost burdens that drove the 2024 loss are gradually easing.
Alongside revenue growth, the operating margin has moved from negative territory to near double digits in some quarters, confirming an operating leverage effect.
RP Bio has held the No.1 position in Korea's OTC soft-gel capsule market for three consecutive years, and is expanding its portfolio into higher value-added formulations such as blister jelly, jelly sticks, and sustained-release vitamin C, built on patented formulations like NeoNeoSol and NeoNeoGel.
New functional ingredient lines such as turmeric extract and magnesium are being commercialized in sequence, leaving room for product mix improvement. This formulation technology is cited as a differentiating factor versus competitors.
The Mado plant secured a regulatory foundation for global exports after receiving a VAI rating in a U.S. FDA on-site inspection in June 2026.
The company has stated plans to shift from an indirect export structure via domestic pharmaceutical companies toward directly securing overseas buyers, marking its first participation in Vitafoods Asia in September 2026. If the overseas market push translates into results, it could lead to diversification of the revenue base.
The domestic health supplement market is viewed by the industry as being in a stagnation phase, with recent annual growth in the low single digits or near zero. The supplement segment, which accounts for more than half of RP Bio's revenue, could be affected by this market environment.
Competitors are also aggressively expanding production facilities, raising concerns about industry-wide oversupply.
As distributors increasingly secure their own functional ingredients to plan and launch highly functional products directly, competitive intensity in the individually-recognized functional food segment is expected to rise further.
This could pose a near-term headwind to the pipeline of new customers that CDMO players like RP Bio have relied on. Intensifying competition over ingredient differentiation could also become a source of margin pressure.
Quarterly operating profit fell as low as KRW 0.27 billion in Q3 2025, indicating relatively wide swings between quarters. As a small-cap stock with a relatively small market capitalization, liquidity and information coverage may be limited. Absolute profit scale has also not yet returned to 2022 and 2023 levels.
Competition in the individually-recognized functional food market is expected to intensify as distributors increasingly secure their own functional ingredients, which could affect the volume of contract manufacturing orders.
With the health supplement market's own growth rate stagnant near zero, competitors' continued expansion of production facilities raises the possibility of heightened price competition across the industry.
If fixed-cost burdens such as raw material costs, utility expenses, and depreciation increase, the pace of operating margin improvement could slow. R&D expenses and capital expenditure associated with developing new formulations and ingredients are also factors that could recur.
The shift from indirect to direct exports is still at an early stage, and securing overseas buyers and finalizing actual contracts may take time. Even after successfully clearing regulatory requirements such as U.S.
FDA certification, additional costs related to building overseas marketing and sales capabilities, as well as logistics and certification expenses, could arise.
A point to check whether the turmeric extract (SLCP™) product for age-related cognitive function support formally launches, and the initial order response.
Need to confirm whether direct-export contracts with overseas buyers are signed following participation in Vitafoods Asia in Thailand, and their scale.
The Q3 2026 quarterly report filing will show whether the first-half earnings recovery trend continues into the second half.
It will be worth checking the interim progress of the goal to expand the share of magnesium-based product development by more than 300% by 2030.
RP Bio has shown operating profit improving for four consecutive quarters through the first half of 2026, following a swing from a 2024 loss to a 2025 profit.
Its dominant position in the soft-gel capsule market, expansion into new formulations and ingredients, and an attempted shift to direct overseas exports on the back of U.S. FDA certification are cited as growth drivers.
On the other hand, the stagnant growth of the health supplement market itself and intensifying competition in the individually-recognized ingredient segment remain structural headwinds. The steadily declining debt ratio and stable operating cash flow are positive from a financial stability standpoint.
However, absolute profit levels have not yet fully recovered to 2022–2023 levels, and actual results from the direct overseas export push have not yet been confirmed.
Third-quarter results and whether overseas order contracts materialize are likely to be key variables in gauging the durability of the earnings recovery going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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