1. What Happened?: Declining Core Business and New Ventures
Jinbiotech’s revenue for the first half of 2025 decreased by 44.5% year-on-year to KRW 45.994 billion, and operating profit fell by 57.2% to KRW 1.646 billion. The significant decline in sales in the animal pharmaceuticals segment, its core business, was the primary cause of the profit deterioration. To address this decline, Jinbiotech has diversified its business by entering the general warehousing and transportation sectors.
2. Why Did This Happen?: Increased Market Competition and Investment Burden
Intensified competition in the animal pharmaceuticals market and global economic uncertainty contributed to Jinbiotech’s poor performance. The approximately KRW 5.5 billion investment in the new business represents a significant burden considering the company’s size, and the expected payback period is approximately eight years.
3. What’s the Solution?: Strengthening the Core Business and Stabilizing New Ventures
Jinbiotech needs to focus on restoring competitiveness in its core business and achieving early profitability in its new ventures. To overcome the decline in sales in the animal pharmaceuticals segment, the company needs to actively develop new products, enhance the competitiveness of existing products, and explore overseas markets. Furthermore, it needs to secure external cargo and improve operational efficiency to ensure the stable establishment and profitability of its logistics business.
4. Investor Action Plan: Cautious Approach, Continuous Monitoring
Experts recommend a ‘Hold’ rating for Jinbiotech. While the new business ventures and the potential of the core business are positive, investors need to carefully monitor the company’s efforts to analyze and address the causes of its poor performance and the concrete results of its new business ventures. Continuous attention should also be paid to managing exchange rate and interest rate volatility and maintaining financial soundness.