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
OSP posted consecutive quarterly operating profits and a return to net profit attributable to owners in Q2 2026, but its administrative-issue designation for falling below the market-cap threshold has triggered a series of rights offerings that raise governance concerns.
Operating profit turned positive for two straight quarters in 2026 (Q1, Q2), and Q2 net profit attributable to owners also turned positive at KRW 0.21 billion
Revenue declined in 2025 after a Chosun Flour Mills-affiliated feed maker shifted a large consignment volume to in-house production
Designated an administrative issue stock in July 2026 for falling below the KRW 20 billion market-cap threshold, followed by multiple third-party rights offerings alongside treasury stock buybacks and cancellations
One rights-offering subscriber was reported by media as a company of unclear substance, raising questions about the reliability of the capital raise
Exports of the INDIGO private-brand line are growing, with plans to enter Chile, Taiwan, and other Latin American channels in the second half
OSP started in 2004 as a paper-packaging manufacturer, expanded into compound pet feed in 2011, and transitioned into a dedicated pet food manufacturer in 2016.
The company holds both USDA-NOP organic certification and Korea's eco-friendly organic certification, and has obtained SQF Level 3 food safety certification along with HACCP, giving it what is described as a distinctive certification position among domestic pet food ODM makers.
The business is organized around two pillars: B2B ODM (original development manufacturing) and a direct-to-consumer private brand (PB) line, pursuing a dual-track strategy that maintains the ODM base as a stable cash-flow source while gradually expanding PB exposure.
At the end of 2022, OSP acquired Bauwow Korea, a leading domestic pet snack maker, for KRW 18.3 billion, securing a 49.9% stake and management control, which expanded production capacity roughly threefold from 7,100 tons to about 20,000 tons.
Its private brands include INDIGO, INDIGO 7, and INDIGO Bionutrition, sold through its own online store, Naver Smart Store, Coupang, and offline distributors.
The ODM customer base is anchored by 12 major domestic pet food brands, and in the first half of 2026 the company signed new ODM supply contracts with three additional companies, including Mokwoochon and Woosung Feed.
Dog food accounts for a substantial share of production volume, with the remainder consisting of super-premium cat food, and the company has pushed to expand PB sales through celebrity marketing and new product launches.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩6B | -₩300M | −5.1% |
| 2025Q3 | ₩6.4B | -₩500M | −7.6% |
| 2025Q4 | ₩6.6B | ₩88,096 | 0.0% |
| 2026Q1 | ₩7.2B | ₩500M | 6.3% |
| 2026Q2 | ₩6.9B | ₩500M | 6.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩16.8B | ₩1.1B | ₩1.1B | 6.5% | 3.2% | 8.0% |
| 2023 | ₩35.2B | ₩2B | -₩400M | 5.8% | −1.1% | 61.1% |
| 2024 | ₩30.3B | -₩58,743,717 | ₩2.4B | −0.2% | 6.5% | 47.7% |
| 2025 | ₩25.4B | -₩1.3B | -₩3.3B | −5.0% | −10.4% | 50.7% |
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
Annual results show a solid profit in 2022 with revenue of KRW 16.8 billion and operating profit of KRW 1.1 billion (6.5% operating margin), but after Bauwow Korea's consolidation in 2023 revenue rose to KRW 35.2 billion while the operating margin fell to 5.8% and net profit attributable to owners turned negative at KRW -0.4 billion.
In 2024, revenue declined to KRW 30.3 billion and operating profit turned negative at KRW -0.06 billion, yet net profit attributable to owners was positive at KRW 2.35 billion, suggesting non-operating factors played a role.
In 2025, revenue fell further to KRW 25.4 billion, with an operating loss of KRW 1.28 billion and a net loss attributable to owners of KRW 3.29 billion, marking a sharp deterioration.
On a quarterly basis, losses persisted through Q2 2025 (revenue KRW 6.0 billion, operating loss KRW 0.3 billion, net loss KRW 0.85 billion) and Q3 2025 (revenue KRW 6.4 billion, operating loss KRW 0.49 billion, net loss KRW 0.67 billion); in Q4, revenue reached KRW 6.6 billion and operating profit nearly broke even at KRW 0.09 million, but the net loss widened to KRW 1.37 billion.
Operating profit then turned positive in Q1 2026 (revenue KRW 7.2 billion, operating profit KRW 0.45 billion), and in Q2 2026 revenue of KRW 6.9 billion and operating profit of KRW 0.47 billion were accompanied by a return to positive net profit attributable to owners of KRW 0.21 billion, marking a clear improvement within the trailing four-quarter window (Q3 2025 through Q2 2026).
Still, the cumulative net profit attributable to owners over that same four-quarter window remains negative, and the frequent divergence between operating and net results across quarters points to a significant role for non-operating items.
The domestic pet food market is generally viewed as structurally growing on the back of rising pet ownership and demand for premium, functional products, but competition among OEM/ODM makers within the organic and premium segment has intensified.
OSP is described as having positioned itself as a key manufacturing partner in that segment given its history of supplying a substantial share of organic-certified pet food production domestically.
However, vertical integration trends among downstream customers have emerged as an industry risk, exemplified by a Chosun Flour Mills-affiliated feed maker shifting to in-house production and pulling a large volume that had been consigned to OSP.
This illustrates the structural exposure of an ODM-based business model that is heavily dependent on a small number of large customers.
Relative to peers, few competitors combine domestic organic certification with SQF Level 3, which is cited as a differentiating factor, yet it is also evident that expansion of existing customer product lines alone was insufficient to offset revenue pressure amid weaker market demand and intensifying competition.
Meanwhile, across the KOSDAQ market broadly, the stepwise increase in the market-cap threshold for maintaining listing status has led to a growing number of small-cap companies, including OSP, being designated administrative issue stocks, highlighting a listing-maintenance risk specific to small caps that is separate from underlying industry fundamentals.
The company has explained via a shareholder letter that its administrative-issue designation stems from government reforms to delisting rules rather than business insolvency or financial distress, and has stated its intent to prove a sustainable growth foundation through an earnings turnaround, global expansion, and new growth drivers.
Specifically, it disclosed plans for the second half including building a dedicated online store in Chile, entering a major Latin American online platform, and entering Costco Taiwan, while noting that Q1 export revenue for the INDIGO private brand rose about 22% year over year.
To maintain its listing, the company resolved a KRW 5.6 billion third-party rights offering with direct participation from the largest shareholder of KRW 1.0 billion, canceled 210,000 treasury shares in March, carried out a 0.5-share bonus issue per share in June, and resolved a KRW 2.0 billion treasury stock buyback.
It subsequently raised roughly KRW 7.7 billion in operating funds through four separate third-party rights offerings over four months through early August, one of which—worth KRW 2.0 billion—saw its payment date delayed by a week after media reports questioned the subscribing entity's substance.
Strategic investor Y2K Partners tied its rights-offering payment to the appointment of new board members at an extraordinary shareholders meeting, in the process securing a 22.5% stake that trails the existing largest shareholder Woojin BnG at 35.4%.
Following the administrative-issue designation, a rule requiring the market cap to stay above KRW 20 billion for 45 of 90 trading days—failing which formal delisting procedures begin—means market-cap defense remains the most important near-term variable.
The current share price appears to trade at a discount to the company's net asset value, and because net profit attributable to owners over the trailing four quarters remains in a net-loss position, a meaningful price-to-earnings ratio cannot be calculated.
At the time of listing, the IPO price was set below the average multiple of comparable domestic peers over the trailing twelve months, and valuation reference points have shifted repeatedly since as earnings swung between profit and loss.
No recent dividend history has been identified, so shareholder-value measures have taken the form of treasury stock buybacks and cancellations and a bonus share issue rather than cash dividends.
The recent return to quarterly operating and net profit is a factual sign that the earnings trend underlying valuation has entered an improving phase, but this must be weighed alongside share dilution from frequent rights offerings and the listing-maintenance uncertainty tied to the administrative-issue designation.
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
Operating profit was positive in both Q1 and Q2 2026, and net profit attributable to owners also turned positive in Q2 at KRW 0.21 billion. This contrasts with the losses that persisted from Q2 through Q4 2025, and an improving earnings trend is observable within the trailing four-quarter window.
This can be interpreted as the combined result of ODM price adjustments and the addition of new customer contracts.
The company stated that Q1 export revenue for the INDIGO private brand grew about 22% year over year.
Plans for the second half include a dedicated Chile online store, entry into a major Latin American online platform, and entry into Costco Taiwan, which could serve as alternative growth channels amid intensifying competition in the domestic ODM market.
OSP is known as one of the few domestic pet food makers to hold both U.S. and Korean organic certifications alongside SQF Level 3 and HACCP. The roughly threefold capacity expansion from the Bauwow Korea acquisition is also cited as a strength that provides room to absorb new ODM contract demand.
A Chosun Flour Mills-affiliated feed maker's shift to in-house production pulled a large volume that had been consigned to OSP, and finding replacement customers to fully offset that loss remains a work in progress. This is cited as one factor behind revenue falling from KRW 35.2 billion in 2023 to KRW 25.4 billion in 2025.
The company was designated an administrative issue stock in July 2026 for falling below the market-cap threshold, and if the market cap fails to stay above KRW 20 billion for 45 of 90 trading days, formal delisting procedures can begin. This is a binary risk that must be resolved in the near term regardless of earnings improvement.
Over roughly two months after the administrative-issue designation, multiple third-party rights offerings were conducted, one of which was reported by media as involving an entity of unclear substance, delaying the payment for new shares.
As the repeated rights offerings substantially increase the share count, concerns about dilution for existing shareholders have grown in tandem.
While the administrative-issue designation persists, failure to meet the prescribed trading-day threshold could trigger delisting procedures. The repeated rights offerings and convertible bond-related responses used to defend against this can add further volatility to the capital structure.
Given the nature of the ODM business, revenue dependence on a small number of large customers is high, and a customer's decision to vertically integrate—as in the case of the Chosun Flour Mills-affiliated maker—can directly hit revenue. If the pace of securing new customers fails to offset such losses, revenue recovery could be delayed.
The frequent divergence between operating and net results across quarters and years suggests non-operating factors have played a significant role.
The recent emergence of a new investor approaching the major shareholder's stake, combined with new board appointments, has heightened market attention on management stability.
Whether the requirement of maintaining a market cap above KRW 20 billion for 45 of 90 trading days since the July 9, 2026 designation is met should become clearer around this period, and if not met, whether formal delisting procedures begin needs to be checked.
It should be checked whether the Q1-Q2 2026 turnaround to operating and net profit continues in Q3 2026 results, and how much the new ODM contracts and expanded PB exports are reflected in revenue.
The actual progress and revenue contribution of the company's disclosed overseas channel expansion plans—building a dedicated Chile online store, entering a major Latin American online platform, and entering Costco Taiwan—should be checked.
Follow-up disclosures on changes in the stake of new investors such as Y2K Partners, changes in the existing largest shareholder Woojin BnG's stake, and new board composition should be reviewed to assess management stability.
OSP has shown earnings-improvement signals with consecutive quarterly operating profits and a return to net profit attributable to owners in Q2 2026, but this should be considered alongside the fact that it comes after revenue and profit deteriorated sharply through 2025, partly due to the loss of a Chosun Flour Mills-affiliated customer.
At the same time, the company was designated an administrative issue stock in July 2026 for falling below the market-cap threshold, and to defend against this it carried out multiple third-party rights offerings alongside treasury stock buybacks, cancellations, and a bonus issue over roughly two months.
In the process, media reports questioned the substance of one rights-offering subscriber, and governance-related uncertainty grew as a new investor's stake approached that of the existing largest shareholder.
Growing exports of the INDIGO private brand and plans to enter new overseas channels such as Chile and Taiwan are positive business signals, but they remain at a planning stage without a confirmed revenue contribution.
The requirement to maintain a market cap above KRW 20 billion for 45 of 90 trading days to resolve the administrative-issue designation remains a key variable to confirm in the near term, separate from earnings improvement.
On balance, the company is at a juncture where signs of operational recovery coexist with uncertainty surrounding listing maintenance and capital raising.
Report written 2026-09-05 · Data as of 2026-09-04
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