1. What Happened? Q2 2025 Earnings Breakdown

Keeps Biopharma reported Q2 2025 revenue of ₩43.3 billion, exceeding market expectations by 7%. This growth was driven by the successful integration of Korea Global Pharmaceutical Co., Ltd., leading to significant expansion in the pharmaceutical and bio business. However, operating profit turned negative at ₩-0.9 billion, attributed to increased SG&A expenses and a struggling OLED business. Net income reached ₩0.7 billion, but the impact of one-off gains cannot be ruled out.

2. Why These Results? Business Environment Analysis

  • Pharmaceutical & Bio: While the merger and promising drug pipeline are positive, increased R&D investment requires ongoing monitoring.
  • Recycling: Significant market potential exists, but challenges remain in securing raw materials and commercializing LFP battery technology.
  • OLED: Despite the industry’s shift towards OLED displays, Keeps Biopharma’s OLED segment continues to struggle, necessitating intensified competition and next-generation technology development.

3. What’s Next? Future Outlook and Investment Strategy

Keeps Biopharma’s future hinges on sustained growth in its pharmaceutical and bio business and the potential turnaround of its OLED segment. Investors should closely monitor the company’s strategies for profitability improvement, progress in new drug development, and strategic shifts in the OLED business. Managing the high debt ratio is also crucial.

4. What Should Investors Do? Action Plan

Investors should be mindful of potential short-term stock price volatility and focus on the long-term growth and profitability of the pharmaceutical and bio business. Regularly reviewing the company’s IR materials, public disclosures, and consulting expert opinions are essential for making informed investment decisions.