1. Caregen Q1 2025 Earnings: What Happened?

Caregen’s Q1 2025 revenue and operating profit decreased slightly year-over-year. Preliminary Q2 results suggest this slowdown will continue. While seasonal factors or temporary effects are possible, close monitoring of future trends is crucial.

  • Q1 2025 Earnings (KRW billions): Revenue 213, Operating Profit 102, Net Profit 84
  • Preliminary Q2 2025 Earnings (KRW billions): Revenue 181, Operating Profit 74, Net Profit 48

2. Positive Factors vs. Potential Risks: Why These Results?

2.1 Positive Factors: Growth Drivers Still Intact

  • New Business Expansion and R&D Investment: Caregen is focusing on securing future growth engines, including technology transfer, pharmaceuticals (‘CG-P5’ for macular degeneration), and animal health products/feed.
  • Robust Overseas Sales: 98% of total revenue is generated overseas, with a sales network spanning 130 countries.
  • Stable Financial Structure: Caregen maintains a stable financial position with a low debt ratio (17.97%) and solid cash flow.

2.2 Potential Risks: Challenges to Overcome

  • Exchange Rate Volatility: High overseas export dependence makes Caregen susceptible to exchange rate fluctuations, particularly the KRW/EUR rate.
  • Low Production Capacity (Some Items): Low production capacity for Growth Factor (4.1%) and Peptide (16.3%) needs improvement.

3. Investment Strategy: What Should Investors Do?

Caregen has long-term growth potential, but investors should be aware of short-term earnings volatility and exchange rate risks. Consider the following factors when making investment decisions:

  • Monitor new business performance and R&D pipeline progress.
  • Assess exchange rate trends and Caregen’s FX risk management strategies.
  • Confirm earnings improvement and sustainable growth potential.

4. Caregen’s Leap Towards the Future

Caregen is strengthening its competitiveness in the global healthcare market based on a solid foundation. Investors need to make informed decisions on whether Caregen can overcome short-term challenges and achieve sustainable growth.