PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
T&L, which saw a revenue and profit decline in 2025 due to a US distribution inventory adjustment, has shown two consecutive quarters of margin improvement in the first half of 2026.
In Q2 2026, the operating margin reached 44.6% and gross margin hit 53.4%, both record highs for the company.
In 2025, revenue and operating profit fell 6.1% and 18.6% year-on-year, respectively, due to a US distribution inventory adjustment.
Heavy revenue dependence on key customer Church & Dwight/Hero Cosmetics is both a strength and a risk.
Church & Dwight is preparing to expand the trouble-care patch into China, Japan, and Singapore, with regulatory approvals nearing completion.
The next earnings report is scheduled for November 12, 2026.
Founded in 1998, T&L is a high-functional materials company that produces wound dressings, microneedle patches, and orthopedic fixation materials. Most of its revenue comes from the wound dressing segment, which accounted for 83.9% of total sales as of the third quarter of 2024.
Built on its technology as the first domestic developer of hydrocolloid dressings, acne and trouble-care patches have become its core products.
These are supplied on an ODM basis to Hero Cosmetics in the United States (now a subsidiary of Church & Dwight), which handles exclusive distribution in markets such as the US and Canada.
Microneedle patches are expanding into both cosmetic and medical applications, with Dongkook Pharmaceutical serving as a domestic partner for related products. As of 2024, the US market accounted for 59% of sales, reflecting a heavily concentrated geographic mix.
Orthopedic fixation materials such as casts, the company's original business line, remain part of the portfolio today.
The company is diversifying through its own cosmetics brand 'Illumiel' and healthcare subsidiary 'T&L Healthcare,' and has signed a cooperation agreement with Slovenia's PharmaHemp to jointly develop patches using cannabis extracts.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩38.8B | ₩10B | 25.7% |
| 2025Q3 | ₩40.7B | ₩12.1B | 29.8% |
| 2025Q4 | ₩33.4B | ₩4B | 12.0% |
| 2026Q1 | ₩45.1B | ₩18.3B | 40.5% |
| 2026Q2 | ₩56B | ₩25B | 44.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩81.6B | ₩24.3B | ₩21.1B | 29.8% | 19.9% | 10.3% |
| 2023 | ₩115.5B | ₩30.8B | ₩27.4B | 26.7% | 21.2% | 9.7% |
| 2024 | ₩174.9B | ₩57B | ₩46.4B | 32.6% | 27.1% | 15.0% |
| 2025 | ₩164.2B | ₩46.4B | ₩38.1B | 28.2% | 18.9% | 7.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Consolidated revenue in 2025 came to KRW 164.2 billion, down from KRW 174.9 billion in 2024, while operating profit fell to KRW 46.4 billion from KRW 57.0 billion.
The operating margin declined from 32.6% in 2024 to 28.2% in 2025, and net profit attributable to owners also slipped from KRW 46.4 billion to KRW 38.1 billion. This decline is attributed to a US distribution inventory adjustment that continued through 2025.
By quarter, Q3 2025 (revenue of KRW 40.7 billion, operating profit of KRW 12.1 billion) was the strongest of the year, while Q4 2025 (revenue of KRW 33.4 billion, operating profit of KRW 4.0 billion) slowed sharply due to the lingering inventory adjustment.
The recovery became clear in 2026, with Q1 revenue of KRW 45.1 billion and operating profit of KRW 18.3 billion, a marked improvement from the prior quarter.
In Q2, revenue reached KRW 56.0 billion and operating profit KRW 25.0 billion, a record for a single quarter, with the operating margin climbing to 44.6% and beating consensus by 12%.
Gross margin in the same period hit a record 53.4%, a figure the company says was achieved through raw material efficiency gains and currency effects alone, without any benefit from US tariff refunds.
Cumulative net profit attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) reached KRW 51.1 billion, and although quarterly results remain volatile, the last two quarters have shown a consistent recovery trend.
Wound dressings are medical devices used to protect wounds and absorb exudate, and the market is relatively insensitive to economic cycles, with steady demand driven by an aging population, rising chronic disease rates, and growing skin-aesthetic procedures.
Products covered by health insurance provide a stable sales base, and companies with hydrocolloid and polyurethane foam technology are known to maintain strong market share. T&L is reported to hold the top share of the domestic hydrocolloid wound dressing market.
However, the segment currently driving results is not medical use but cosmetic trouble-care (acne) patches, and one securities analyst noted that the US and European trouble-patch markets remain at an early stage with ample room for growth.
The same analysis noted that although the number of distribution points under the key customer's parent grew sharply, this still represents only 15-20% of its total distribution network.
In April 2026, monthly wound dressing exports from the Anseong, Gyeonggi region topped USD 10 million for the first time since January 2025, with 82% bound for the United States, confirming the US export recovery in the data.
In terms of competitive positioning, the company's vertical integration—from raw material formulation to finished product—is cited as a differentiator versus competitors that purchase intermediate materials for further processing.
Hana Securities forecast in a May 2026 report that annual revenue would reach KRW 198.2 billion (up 21% year-on-year) and operating profit KRW 61.2 billion (up 32%, with a 31% operating margin).
Key customer Church & Dwight is preparing to expand the trouble-care patch into Asia, with regulatory approvals in China, Japan, and Singapore nearing completion and orders expected within the year.
In Europe, the Mighty Patch is expanding into markets such as Germany, the UK, and France through Church & Dwight's distribution network. With the exclusivity clause in the Church & Dwight microneedle contract lifted, the possibility of securing additional customers beyond Dongkook Pharmaceutical has opened up.
SangSangIn Securities noted in a May 2026 report that the US inventory adjustment that persisted through 2025 has concluded and that US exports entered a recovery phase starting in Q1 2026.
Kiwoom Securities said in an August 2026 report that Q2 operating profit beat consensus by 12%, maintaining a Buy rating and raising its target price by 2.3% to KRW 48,000. The next earnings release is scheduled for November 12, 2026, which will show whether the recovery trend continued into the third quarter.
Reflecting the improvement in results over the past four quarters, the earnings multiple appears to sit near the lower end of the trading band the company has established since its listing.
On a self-calculated basis, the share price sits close to net asset value per share, meaning the premium over book value is not large. Despite a policy of raising the dividend each year, the dividend yield remains below the average for the KOSDAQ pharmaceutical and biotech sector.
The fact that earnings entered a recovery phase in the first half of 2026 following the 2025 slowdown has become a central theme in recent valuation discussions.
That said, given the revenue structure's heavy reliance on the US market, quarterly multiple volatility could increase depending on tariff and inventory cycles.
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 2026-09-05
In Q2 2026, the operating margin rose to a record 44.6%, and gross margin hit a record 53.4%, both the highest in company history. Achieving this without any tariff refund benefit—purely through raw material efficiency and currency effects—suggests an underlying improvement in profitability structure. Results have improved for two consecutive quarters in 2026, moving past the low point seen in Q4 2025.
Key customer Church & Dwight is preparing to expand trouble-care patches into Asia, including China, Japan, and Singapore, with regulatory approvals nearing completion. In Europe, the company is also expanding into markets such as Germany, the UK, and France.
The fact that April 2026 wound dressing exports surpassed USD 10 million per month again, with 82% bound for the US, suggests the export recovery is confirmed in the data.
Kiwoom Securities said in an August 2026 report that Q2 operating profit beat consensus by 12%, maintaining a Buy rating and raising its target price by 2.3% to KRW 48,000.
SangSangIn Securities also maintained a Buy rating in a May 2026 report, noting that the 2025 US inventory adjustment had concluded and exports entered a recovery phase from Q1 2026.
A large portion of wound dressing revenue is concentrated with Hero Cosmetics/Church & Dwight in the US, which accounted for 59% of sales as of 2024.
This structure means changes in a single customer's inventory policy directly affect results, and indeed 2025 saw both revenue and operating profit decline year-on-year due to a US distribution inventory adjustment. Diversification into new customers and regions is underway, but its revenue contribution still appears limited.
Given that a large share of revenue comes from exports, changes in US tariff policy or the won/dollar exchange rate are cited as variables that could affect margins.
The Q2 2026 gross margin improvement was achieved without tariff refunds, through raw material efficiency and currency effects, which means the current margin level may not be sustained if currency conditions change. If tariff policy shifts alter customer ordering patterns, quarterly earnings volatility could increase.
Quarterly results vary significantly due to seasonality and inventory cycles—Q4 2025 operating profit (KRW 4.0 billion) was only about a third of Q3's level (KRW 12.1 billion). This volatility makes it difficult to judge a trend from a single quarter's results.
While the last two quarters have shown improvement, similar cycles of improvement and slowdown have occurred before, warranting confirmation of durability.
A substantial portion of wound dressing revenue is reported to come from Church & Dwight (Hero Cosmetics), meaning any change in contract terms or a reduction in orders could significantly impact results.
Diversification of partners, including Dongkook Pharmaceutical, is underway, but reducing this concentration meaningfully will likely take time.
Wound dressings and microneedle products are classified as medical devices requiring country-by-country regulatory approval, and expansion into new markets can be delayed by approval processes. Changes in US tariff policy are cited as a factor that could influence customer purchasing and inventory decisions.
With a high share of exports, fluctuations in the won/dollar exchange rate have a direct impact on revenue and margins, and since currency effects reportedly contributed significantly to the recent margin improvement, a reversal in exchange rate direction could pressure margins.
Scheduled Q3 (July-September 2026) earnings release; important to check whether the margin improvement seen in Q2 continued.
Confirmation of regulatory approvals and finalized orders for Church & Dwight's expansion into China, Japan, and Singapore should be monitored.
Watch for any new customer contracts for microneedle patches beyond Dongkook Pharmaceutical.
Check whether gross and operating margins hold near Q2 2026 levels, and whether currency and tariff variables continue to affect results.
T&L posted a revenue and operating profit decline of 6.1% and 18.6%, respectively, in 2025, a downturn explained by a US distribution inventory adjustment. Both Q1 and Q2 of 2026 showed improved results, with the Q2 operating margin climbing to 44.6%, confirming that a recovery is underway.
The company's core competitiveness lies in its hydrocolloid-based trouble-care patches and microneedle material technology, though heavy revenue reliance on Hero Cosmetics/Church & Dwight in the US represents both a strength and a risk.
Expansion of distribution into Europe and Asia, along with the potential to secure new microneedle customers following the lapse of exclusivity, are cited as medium-to-long-term growth drivers.
However, external variables such as tariffs and currency, combined with high revenue dependence on a single customer, remain factors that could sustain earnings volatility.
Some brokerages have recently raised target prices or maintained Buy ratings reflecting the earnings improvement, but continued monitoring is warranted given the company's history of large quarter-to-quarter swings.
Report written 2026-09-05 · Data as of 2026-09-04
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