PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩228 per share · Prices as of the 2026-10-02 close
BioNote's operating profit continues to improve on structural growth in its animal diagnostics business, but equity-method gains and losses tied to its stake in SD Biosensor create large swings in net income.
The animal diagnostics division (Vcheck series) drove revenue and operating profit growth, with 2025 operating profit up 36.8% year over year.
Despite an operating profit, 2025 saw a net loss attributable to owners of about KRW 87.5 billion, driven largely by equity-method losses from affiliates, marking a swing to a net loss.
BioNote holds roughly a 36% stake in SD Biosensor and effectively functions as its holding company, meaning net income is closely linked to SD Biosensor's performance.
The company is diversifying its portfolio through Auto CLIA entry, an AI diagnostics platform, and animal antibody therapeutics.
Despite the net loss, the company has maintained its cash dividend, continuing its shareholder-return policy.
BioNote is a biocontent and animal diagnostics specialist operating through two main divisions: animal diagnostics and life sciences (biocontent).
The company has stated that exports account for more than 70% of sales, and it operates a global distribution network spanning more than 80 countries and roughly 120 dealers and direct outlets through its US and China subsidiaries.
Its flagship product is the fluorescent immunoassay device 'Vcheck F,' which holds the top global market share in point-of-care animal immunodiagnostics.
The company has expanded its total diagnostics solution lineup with the biochemistry analyzer 'Vcheck C,' hematology device 'Vcheck H,' molecular diagnostics device 'Vcheck M,' and urinalysis device 'Vcheck U,' alongside steady growth in its rapid diagnostic kit lineup.
The life sciences division develops and supplies antigen and antibody raw materials, with its revenue rising from KRW 23.9 billion in 2023 to KRW 36.6 billion in 2025, aided by export growth and cost reductions that have improved profitability.
On the governance side, BioNote holds a 36.49% stake in SD Biosensor, effectively functioning as the group's holding company, while Chairman Cho Young-sik is the largest shareholder of BioNote with a 39.99% stake.
More recently, the company has been extending into the animal antibody therapeutics market, leveraging its raw-material development expertise, with chronic disease and oncology cited as key target areas.
The competitive landscape includes global animal health leaders such as Zoetis and IDEXX Laboratories, along with domestic comparables like Choongang Vaccine Laboratories and Eagle Vet.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32.4B | ₩6.3B | 19.6% |
| 2025Q3 | ₩29.5B | ₩4.8B | 16.3% |
| 2025Q4 | ₩28B | ₩800M | 3.0% |
| 2026Q1 | ₩32.6B | ₩6.3B | 19.5% |
| 2026Q2 | ₩36.4B | ₩8.5B | 23.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩479.7B | ₩295.4B | ₩307.8B | 61.6% | 19.2% | 9.8% |
| 2023 | ₩90.1B | -₩47B | -₩20.5B | −52.2% | −1.3% | 2.3% |
| 2024 | ₩102.8B | ₩12.2B | ₩55.3B | 11.9% | 3.4% | 3.8% |
| 2025 | ₩118.3B | ₩16.7B | -₩87.5B | 14.1% | −5.8% | 3.0% |
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
BioNote's 2025 consolidated revenue rose to KRW 118.3 billion from KRW 102.8 billion the prior year, while operating profit grew 36.8% to KRW 16.7 billion, lifting the operating margin from 11.9% to 14.1%.
However, net income attributable to owners swung to a loss of KRW 87.5 billion, which the company attributed to equity-method losses from affiliates.
Indeed, SD Biosensor, which BioNote accounts for under the equity method, posted a 2025 consolidated operating loss of KRW 81.0 billion and a net loss of KRW 521.4 billion, and the scale of that loss flows directly into BioNote's own net income.
By quarter, fourth-quarter 2025 operating profit fell sharply to KRW 0.84 billion, yet the owners' net loss for the quarter reached KRW 194.0 billion, showing that most of the annual net loss was concentrated in the fourth quarter.
By contrast, full-year 2025 operating cash flow remained positive at KRW 14.4 billion, supporting the view that the large net loss stemmed mainly from non-cash items rather than actual cash outflows.
In 2026, the recovery continued, with first-quarter revenue of KRW 32.6 billion and operating profit of KRW 6.3 billion, followed by second-quarter revenue of KRW 36.4 billion and operating profit of KRW 8.5 billion; the company stated that cumulative first-half revenue of KRW 68.9 billion and operating profit of KRW 14.8 billion rose 14.5% and 35.2% year over year, respectively.
This improvement was led by the animal diagnostics division, with cumulative global sales of its flagship 'Vcheck F' device approaching 25,000 units.
That said, 2023 saw an operating loss of KRW 47.0 billion, driven partly by roughly KRW 54.3 billion in one-off inventory provisioning tied to the COVID-19 endemic transition, reflecting sharp post-pandemic swings in performance.
The 2022 figures of KRW 479.7 billion in revenue and KRW 295.4 billion in operating profit represented a temporary peak driven by surging COVID-19 diagnostic kit demand and are not directly comparable to recent results.
The global animal diagnostics market has been growing on the back of rising pet ownership and the 'pet humanization' trend, with industry estimates putting the market size at roughly USD 4.5 billion (about KRW 7 trillion) in 2020, expanding to approximately USD 7.5 billion (about KRW 10 trillion) by 2026.
The livestock and industrial-animal diagnostics segment is seen as maintaining relatively stable growth, supported by rising government disease-prevention budgets.
BioNote holds the world's top market share in point-of-care immunodiagnostics within this market and has been expanding into biochemistry, hematology, and molecular diagnostics to position itself as a comprehensive diagnostics solutions provider.
Globally, major animal health companies such as Zoetis and IDEXX Laboratories lead the competitive landscape, while domestic peers such as Choongang Vaccine Laboratories and Eagle Vet are cited as comparables.
In the North American animal diagnostics market, BioNote has set a mid- to long-term goal of shifting diagnostics away from reliance on external reference labs toward in-clinic diagnostics systems, a strategy central to its push into the North American market, which represents about half of the global industry.
The aging of the pet population, which is expanding diagnostic demand toward preventive and routine testing, is also seen as a favorable industry backdrop.
That said, separate from the growth of the animal diagnostics market itself, BioNote's net income is tied to the performance of its human-diagnostics affiliate SD Biosensor, creating a structural feature where the earnings of two businesses with different industry cycles are combined in a single set of financial statements.
BioNote has stated that in the second half it will continue pursuing entry into the Auto CLIA (automated chemiluminescent immunoassay) market and developing an AI-based diagnostics platform, while strengthening its overseas market push using its foreign subsidiaries' capabilities and global distribution network.
In February, at the Western Veterinary Conference (WVC) held in Las Vegas, the company unveiled six new products, including the biochemistry analyzers 'Vcheck C1' and 'Vcheck C10,' the hematology analyzer 'Vcheck H6,' the urinalysis device 'Vcheck U3,' and the chemiluminescent immunoassay devices 'Vcheck i10' and 'Vcheck i20,' signaling an intensified push into the North American market.
The company said it is rapidly expanding beyond its traditional strength in immunodiagnostics into biochemistry, hematology, urinalysis, and molecular diagnostics, with a stated goal of shifting US veterinary diagnostics away from dependence on external reference labs toward its own in-clinic diagnostics systems over the medium to long term.
To this end, it plans to strengthen partnerships with large corporate veterinary hospital groups central to the US market and build a local US production system to enhance price competitiveness and credibility.
An animal antibody therapeutics business, built on the company's raw-material development expertise, is also being pursued as a new growth driver, targeting chronic diseases and oncology, with licensing-out reportedly under consideration over the medium to long term.
The life sciences division is expected to continue improving profitability through cost reduction and operational efficiency.
If this expansion in the animal diagnostics business continues, the company's operating fundamentals have room to improve, but net income could still swing sharply based on equity-method gains or losses from SD Biosensor, making it necessary to evaluate the two metrics separately.
BioNote's recent full-year net loss puts it in a range where a conventional price-to-earnings comparison is difficult to apply, and its shares trade at a level below net asset value per share, reflecting a discount to book value.
This discount is linked to the structural feature whereby owners' net income is driven more by equity-method gains or losses from its affiliate, SD Biosensor, than by operating performance, making simple earnings-multiple comparisons less straightforward.
On the other hand, operating cash flow has remained positive even in years with a net loss, pointing to a gap between the company's cash-generating ability from operations and an accounting net income that is swayed by equity-method factors.
The company has maintained its cash dividend even in loss-making years, suggesting continuity in its shareholder-return approach. Against this backdrop, investors may find it useful to separately track the trend in operating margin from the swings driven by equity-method gains or losses.
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
Driven by rising pet ownership, pet aging, and the 'pet humanization' trend, the global animal diagnostics market has been forecast to grow to roughly KRW 10 trillion by 2026.
BioNote holds the world's top market share in point-of-care immunodiagnostics, with cumulative global sales of Vcheck F approaching 25,000 units. Its operating margin has also improved from a loss in 2023 to 14.1% in 2025.
BioNote is diversifying its diagnostics portfolio through entry into the Auto CLIA market and development of an AI-based diagnostics platform.
Leveraging its raw-material development expertise, it has also entered the animal antibody therapeutics business, targeting chronic diseases and oncology, with licensing-out possibilities reportedly under review over the medium to long term.
This can be read as an attempt to broaden revenue sources beyond its traditional immunodiagnostics-centered business.
Despite posting a net loss in 2025, BioNote maintained its cash dividend, continuing an active shareholder-return policy.
As of the end of 2025, its debt ratio stood at just 3.0% and shareholders' equity exceeded KRW 1.5 trillion, indicating a high degree of financial stability, and operating cash flow remained positive even in the loss-making year.
This suggests that actual cash-generating ability and financial soundness have been maintained even as net income is buffeted by equity-method factors.
BioNote's net income is heavily influenced by equity-method gains or losses from SD Biosensor; in 2025, despite a positive operating profit, the company posted a large net loss driven largely by equity-method losses from affiliates.
The concentration of losses in the fourth quarter also makes quarter-to-quarter results difficult to predict. This structure makes it hard to gauge the company's overall profit or loss from operating performance alone.
SD Biosensor continued to post losses in 2025, with a consolidated operating loss of KRW 81.0 billion and a net loss of KRW 521.4 billion. Since BioNote holds roughly a 36% stake in SD Biosensor under the equity method, continued weakness at SD Biosensor could weigh further on BioNote's net income. Whether SD Biosensor can turn around remains an important variable for the recovery of BioNote's net income.
BioNote's 2022 results of KRW 479.7 billion in revenue and KRW 295.4 billion in operating profit represented a temporary peak driven by surging COVID-19 diagnostic kit demand, and revenue has shrunk significantly since the shift to the endemic phase.
At KRW 118.3 billion, 2025 revenue was only about a quarter of the pandemic peak, meaning the recovery centered on animal diagnostics and life sciences is unlikely to reproduce the former revenue scale in the near term. The recovery is underway, but its pace and magnitude remain gradual.
Because BioNote's net income is linked to SD Biosensor's results through equity-method accounting, any further losses at SD Biosensor could directly affect BioNote's own financial statements. This is a structural risk in which net income can be impaired regardless of BioNote's own operating performance. Net income volatility is likely to recur each time the affiliate reports its results.
Chairman Cho Young-sik is the largest shareholder of BioNote, and in recent years he has gifted large blocks of shares to his eldest daughter, Vice President Cho Hye-im, as part of a succession plan.
The process of funding gift taxes could involve dividend policy decisions or share pledges, and the possibility that this succession process could conflict with minority shareholder interests cannot be ruled out.
The web of equity investments and transactions among related-party entities is complex, warranting scrutiny of governance transparency.
With exports accounting for more than 70% of sales, BioNote is exposed to currency fluctuations and changes in import regulations and tariff policies across markets.
New products require local regulatory approvals, such as from the US Department of Agriculture (USDA), before they can be sold overseas, and delays in approval could affect launch schedules. Growing reliance on large North American distributors could also pressure bargaining power and margin structure.
BioNote's third-quarter 2026 quarterly report should be checked to see whether growth in animal diagnostics revenue and operating profit continues, and how equity-method gains or losses from affiliates are reflected.
When SD Biosensor releases its third-quarter 2026 results, the scale of its earnings and its resulting impact on BioNote's equity-method income should be reviewed together.
This is the period to check the actual commercialization progress of new products such as the Auto CLIA devices (Vcheck i10, i20) and their contribution to revenue.
It will be worth checking for concrete disclosures or announcements regarding progress in the animal antibody therapeutics pipeline and any licensing-out deals.
The announcement and size of the fiscal-year 2026 dividend will indicate whether the shareholder-return policy continues regardless of whether a net loss occurs.
BioNote's operating margin has been improving on the back of structural growth in its animal diagnostics division, with revenue and operating profit maintaining double-digit growth in the first half of 2026 as well.
However, net income attributable to owners is heavily influenced by equity-method gains or losses from SD Biosensor, and in 2025 the company posted a large net loss despite a positive operating profit, highlighting a clear divergence between operating performance and net income.
This structure could recur depending on SD Biosensor's future results, so investors may find it useful to separately track operating-side improvements from net income volatility driven by equity-method accounting.
The company has maintained its cash dividend and a low debt ratio even in a loss-making year, preserving financial stability and its shareholder-return stance.
At the same time, portfolio diversification is underway through new businesses such as Auto CLIA and animal antibody therapeutics, and concrete progress in these areas will be a key point to watch for medium- to long-term changes in the business structure.
Ultimately, understanding this stock requires separating two distinct threads: the operating fundamentals centered on animal diagnostics, and the net income volatility linked to SD Biosensor.
Report written 2026-09-05 · Data as of 2026-09-04
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