1. Q2 Performance: Production Recovery and Improved Profitability

Kyungbo Pharmaceutical’s Q2 revenue reached ₩65.3 billion, showing an increase compared to Q1, with operating profit significantly improving to ₩2.4 billion. This suggests a substantial recovery from the production disruptions experienced in the previous quarter. However, the net loss of ₩1.7 billion necessitates further analysis.

2. Key Issues: Production Disruptions and Future Growth Drivers

The production disruptions highlighted in the Q1 report appear to have been largely resolved, as evidenced by the improved operating profit in Q2. However, the possibility of similar issues arising in the future cannot be ruled out, requiring continued monitoring. Meanwhile, the ₩85.5 billion investment in a new ADC CDMO facility holds promise as a long-term growth driver, although it will take time to generate substantial revenue.

3. Investment Considerations: Risks and Opportunities

Positive aspects include the production recovery and the growth potential of the ADC CDMO business. However, the continued net loss, volatility in raw material prices, and ongoing legal issues related to past violations of pharmaceutical and fair trade laws pose risks that investors should consider.

4. Action Plan for Investors

Before making investment decisions, it is crucial to review the finalized quarterly report, additional financial data, and market analysis. Pay close attention to the progress of the ADC CDMO business and the resolution of legal risks.