New Risk • Apr 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 38% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.8x net interest cover). High level of non-cash earnings (38% accrual ratio). Minor Risk Market cap is less than US$100m (₩136.8b market cap, or US$90.7m). Announcement • Mar 17
DongKoo Bio & Pharma Co., Ltd., Annual General Meeting, Mar 31, 2026 DongKoo Bio & Pharma Co., Ltd., Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 9, jeyakgongdan 1-gil, hyangnam-eup, manse-gu, gyeonggi-do, hwaseong South Korea New Risk • Jan 02
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩144.1b (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.8x net interest cover). Earnings have declined by 11% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (₩144.1b market cap, or US$99.7m). Upcoming Dividend • Dec 22
Upcoming dividend of ₩120 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 03 April 2026. Trailing yield: 2.0%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (0.8%). Declared Dividend • Nov 08
Dividend of ₩120 announced Dividend of ₩120 is the same as last year. Ex-date: 29th December 2025 Payment date: 3rd April 2026 Dividend yield will be 2.4%, which is higher than the industry average of 1.1%. Sustainability & Growth The dividend has increased by an average of 4.7% per year over the past 4 years and payments have been stable during that time. Announcement • Nov 07
DongKoo Bio & Pharma Co., Ltd. announces Annual dividend, payable on April 03, 2026 DongKoo Bio & Pharma Co., Ltd. announced Annual dividend of KRW 120.0000 per share payable on April 03, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Nov 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩140.9b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 6.2% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.5% net profit margin). Market cap is less than US$100m (₩140.9b market cap, or US$98.6m). New Risk • Jul 28
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩138.2b (US$99.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (12% operating cash flow to total debt). Earnings have declined by 5.0% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩138.2b market cap, or US$99.8m). Announcement • Jun 11
D&D Pharmatech Inc. (KOSDAQ:A347850) agreed to acquire an additional 25% stake in Valted Seq, Inc. from DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:A006620), Loftyrock Investment Co. Ltd, OV Principal Investments, LLC, Hanabo Co., Ltd., THE CAPITAL EL PTE. LTD., Octave Tech Investment V26 LLC, Lee Jae Wook and Park Ji-soo for $10.8 million. D&D Pharmatech Inc. (KOSDAQ:A347850) agreed to acquire an additional 25% stake in Valted Seq, Inc. from DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:A006620), Loftyrock Investment Co. Ltd, OV Principal Investments, LLC, Hanabo Co., Ltd., THE CAPITAL EL PTE. LTD., Octave Tech Investment V26 LLC, Lee Jae Wook and Park Ji-soo for $10.8 million on June 11, 2025. A cash consideration of $10.8 million valued at $10.8 per share will be paid by D&D Pharmatech Inc. As part of consideration, $10.8 million is paid towards common equity of Valted Seq, Inc. Upon completion, D&D Pharmatech Inc. will own 93.75% stake in Valted Seq, Inc.
For the period ending December 31, 2024, Valted Seq, Inc. reported total revenue of $71.75 million.
The transaction has been approved by acquirer board. The expected completion of the transaction is June 20, 2025. New Risk • May 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 161% The company is paying a dividend despite having no free cash flows. Dividend yield: 2.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 161% Paying a dividend despite having no free cash flows. Minor Risks High level of debt (47% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.8% net profit margin). Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: ₩75.00 (vs ₩428 in FY 2023) Full year 2024 results: EPS: ₩75.00 (down from ₩428 in FY 2023). Revenue: ₩249.3b (up 16% from FY 2023). Net income: ₩2.04b (down 83% from FY 2023). Profit margin: 0.8% (down from 5.5% in FY 2023). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. New Risk • Nov 12
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩139.8b (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩139.8b market cap, or US$99.7m). Announcement • Aug 16
DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:A006620) announces an Equity Buyback for KRW 1,500 million worth of its shares. DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:A006620) announces a share repurchase program. Under the program, the company will repurchase up to KRW 1,500 million worth of its shares. The purpose of the program is stock price stability and shareholder value enhancement. The program will run until February 13, 2025. As of August 13, 2024, the company had 1,163,144 and 0 treasury stock holdings within the available dividend range acquisition and other acquisitions, respectively. New Risk • Aug 16
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). High level of non-cash earnings (25% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩5,920, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 15x in the Pharmaceuticals industry in South Korea. Total loss to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩8,500, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 14x in the Pharmaceuticals industry in South Korea. Total loss to shareholders of 4.1% over the past three years. Valuation Update With 7 Day Price Move • May 17
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩7,810, the stock trades at a trailing P/E ratio of 18.1x. Average trailing P/E is 18x in the Pharmaceuticals industry in South Korea. Total loss to shareholders of 13% over the past three years. Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩428 (vs ₩238 in FY 2022) Full year 2023 results: EPS: ₩428 (up from ₩238 in FY 2022). Revenue: ₩215.7b (up 11% from FY 2022). Net income: ₩11.8b (up 79% from FY 2022). Profit margin: 5.5% (up from 3.4% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩120 per share at 2.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is a comfortable 45% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.1%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩45.00 (vs ₩112 in 3Q 2022) Third quarter 2023 results: EPS: ₩45.00 (down from ₩112 in 3Q 2022). Revenue: ₩52.9b (up 4.4% from 3Q 2022). Net income: ₩1.25b (down 60% from 3Q 2022). Profit margin: 2.4% (down from 6.1% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 11% per year. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩5,600, the stock trades at a trailing P/E ratio of 17.8x. Average trailing P/E is 16x in the Pharmaceuticals industry in South Korea. Total loss to shareholders of 23% over the past three years. Announcement • Nov 03
DongKoo Bio & Pharma Co., Ltd. (KOSDAQ:A006620) announces an Equity Buyback for KRW 2,000 million worth of its shares. DongKoo Bio&Pharma Co., Ltd. (KOSDAQ:A006620) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of its shares. The purpose of the program is stock price stability and shareholder value enhancement. The program will run until May 2, 2024. As of November 1, 2023, the company had 841,443 and 0 treasury stock holdings within the available dividend range acquisition and other acquisitions, respectively. New Risk • Oct 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩132.9b (US$98.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (₩132.9b market cap, or US$98.4m). Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩238 (vs ₩330 in FY 2021) Full year 2022 results: EPS: ₩238 (down from ₩330 in FY 2021). Revenue: ₩195.0b (up 26% from FY 2021). Net income: ₩6.61b (down 29% from FY 2021). Profit margin: 3.4% (down from 6.0% in FY 2021). Upcoming Dividend • Dec 21
Upcoming dividend of ₩110 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. Payout ratio is a comfortable 33% but the company is paying out more than the cash it is generating. Trailing yield: 1.5%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.0%). Upcoming Dividend • Dec 22
Inaugural dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 22 April 2022. The company is not currently making a profit and is not cash flow positive. This is the first dividend for DongKoo Bio&Pharma since going public. The average dividend yield among industry peers is 0.8%. Is New 90 Day High Low • Feb 17
New 90-day high: ₩37,100 The company is up 63% from its price of ₩22,800 on 19 November 2020. The South Korean market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Pharmaceuticals industry, which is up 2.0% over the same period. Is New 90 Day High Low • Dec 23
New 90-day high: ₩27,300 The company is up 16% from its price of ₩23,550 on 24 September 2020. The South Korean market is also up 16% over the last 90 days, indicating the company’s price trend is similar to the market over that time. Its price trend is also similar to the Pharmaceuticals industry, which is up 16% over the same period. Is New 90 Day High Low • Oct 23
New 90-day low: ₩22,700 The company is down 13% from its price of ₩26,000 on 24 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 4.0% over the same period. 
