1. Daewoong’s Q2 2025 Performance: An Earnings Surprise

Daewoong Pharmaceutical announced its Q2 2025 earnings on August 14, 2025, reporting revenue of ₩528.4 billion, operating profit of ₩85.3 billion, and net income of ₩61.3 billion. These figures significantly exceeded market expectations, marking a substantial earnings surprise. The operating profit, in particular, reflects a remarkable 41% year-over-year increase, highlighting the company’s accelerating profitability.

2. Drivers of Growth: Innovative Drugs and Core Business Strength

This exceptional performance is attributed to the continued growth of innovative drugs like Nabota, Fexuprazan, and Envlo, along with increased R&D investments and accelerated expansion into global markets, strengthening Daewoong’s core business competitiveness.

3. Investor Action Plan: A BUY Recommendation

Considering the outstanding earnings, accelerating profitability, and high growth potential of key products, we recommend a BUY rating for Daewoong Pharmaceutical. The Q2 results are expected to be a significant catalyst, raising expectations for the company’s full-year performance.

4. Risk Factors and Outlook

  • Exchange Rate Fluctuations: Continued weakening of the Korean Won could increase import costs.
  • Interest Rate Hikes: Sustained high interest rates may lead to increased borrowing costs.
  • Intensified Competition: The pharmaceutical and biotech industry faces ongoing competitive pressures.

However, Daewoong Pharmaceutical is expected to pursue sustainable growth through strengthening its drug development pipeline, expanding into global markets, and enhancing production efficiency. Investors should carefully monitor these risk factors.