Daehwa Pharmaceutical’s Dividend: What Happened?
Daehwa Pharmaceutical has announced a cash dividend of 50 KRW per common share. The record date is June 30, 2025, and the payment date is August 26, 2025. The dividend yield based on the current stock price is approximately 0.3%.
Background and Implications of the Dividend Decision
Daehwa Pharmaceutical’s Q1 2025 earnings showed sales growth and a return to profitability in operating income, but a net loss. The dividend decision in this context can be interpreted as a positive signal, demonstrating the company’s commitment to strengthening its shareholder return policy. Considering the positive momentum, such as Ripolaksel’s approval for sale in China and the completion of Phase 3 clinical trials for breast cancer, this could be positive from a long-term investment perspective.
What Should Investors Do?
In the short term, the small dividend amount is expected to have a limited impact on the stock price. Investors should focus on key growth drivers such as Ripolaksel’s US FDA approval and European market entry, and the turnaround of the cosmetics/medical device division, rather than the dividend itself. In the medium to long term, the possibility of dividend increases due to improved earnings and cash flow, and the success of Ripolaksel in the global market will determine the stock’s direction. While the pipeline shows promise, a cautious approach is advised considering short-term performance and market uncertainties.
Future Growth Potential and Risks
- Growth Potential: Successful global market entry of Ripolaksel, turnaround of the cosmetics/medical device division.
- Risks: Fluctuations in exchange rates and interest rates, rising raw material prices, intensifying competition in the pharmaceutical industry.