One of the more overlooked industries in South Korea is its pharmaceutical sector. But the Korean drug industry’s size and future prospects mean this probably shouldn’t be the case.

The South Korean pharma market is one of Asia’s largest and fastest growing. It should exceed US$24 billion in total value by 2020.

Global economic uncertainty hasn’t affected this sector much either due to an aging population and the simple fact that the world needs healthcare.

Korea will have an increasingly higher population density and greater need for long-term care. As a result, the government stepped in to ensure healthy growth of its pharma industry.

Authorities are now working on creating a transparent and efficient system to quickly approve drugs. This should help boost South Korea’s pharma sector in general.

With all that said, InvestAsian is proud to present Samjin Pharmaceutical (KRX:005500). The business is at the forefront of the Korean pharmaceutical sector.


Samjin: One of Korea’s Oldest Drug Companies

Established in the early 1970’s, Samjin stock has been through many hard times. But they’ve only made the company stronger.

Samjin provides all they can to help extend the healthy life of its population. The company aims to “strive for a better future on the basis of human dignity.”

A great deal of their research and development is aimed at making advances in the field of medical equipment. The firm is involved in the research, development, manufacturing, and selling of drugs and medical devices to hospitals and stores.

Samjin does business both overseas and domestically and has countless patented drugs.


Strong Fundamentals, Impressive Track Record

A company would not be able to survive through thick and thin without having very strong fundamentals.

Samjin will have no problems paying back debt with a current ratio of over 2. The firm’s sales, EPS, and dividend payout have all increased for the past five years.

They’re also one of few businesses in the market expecting a rise in both their net profit and net profit margins. Projecting a margin of 13% from its previous 10%, Samjin stock should have an even better time in today’s economy.

Samjin’s performance shows in the returns they make for investors. Topping all the competition, the company boasts an impressive ROI of 15%, ROE of 17%, and an ROA of 10% – not bad for the pharmaceutical sector.

They have a fair P/E ratio of 13.44 and a moderate dividend yield of 2.4%.

Selling at a steep discount to last year, we rate Samjin stock a recommended buy for most people wanting to invest in developed Asian markets.

Want to invest in Korea? You might be interested in our analysis of Leeno Industrial, one of South Korea’s most overlooked manufacturing firms.

Skip the Next Western Recession

Learn the best places to invest – and where to avoid – by downloading our free Investment Cheat Sheet.

About Reid Kirchenbauer

Reid Kirchenbauer is the Founder of InvestAsian. He's an accomplished stock trader and property investor in Thailand, Cambodia, and many other places. He's been featured in publications such as Forbes, Nomad Capitalist, Property Report, and Seeking Alpha. Download his free investment guide by clicking here.

You Might Also Like

Share This