T&L 340570 Analysis 2026 — Hydrocolloid Patch Earnings & Valuation

T&L (340570) Company Analysis 2026 — Hydrocolloid Patch Earnings Recovery and Valuation

T&L is a KOSDAQ-listed medical device company whose core product is hydrocolloid wound dressings supplied via OEM to the U.S. market. Having moved beyond the tariff and inventory headwinds of 2025, the company entered a recovery phase in 1Q26, delivering an operating margin of 40.5% and a gross margin of 50.1%.

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1. Company Overview and Core Business

T&L (340570) is a KOSDAQ-listed medical device manufacturer with a market capitalization of KRW 502.3B (≈$334.2M) as of 2026-05-15. Its core products include hydrocolloid-based wound care dressings (including acne patches), polyurethane foam, micro-needles, and orthopedic fixation agents, supplied on an OEM basis to U.S. consumer goods major Church & Dwight. Full-year 2024 revenue was KRW 174.9B (≈$116.4M). The largest shareholder is Choi Yun-so and 9 others (42.7%), with a foreign ownership ratio of 10.9%.

📌 FY2024 revenue of KRW 174.9B (≈$116.4M); U.S. export-driven business centered on OEM supply to Church & Dwight

2. Competitive Analysis of Core Products

In 1Q26, wound care dressing revenue was KRW 41.2B (≈$27.4M), representing 91.4% of total revenue of KRW 45.1B (≈$30.0M). Gross margin for the same quarter reached 50.1%, an all-time high since inception, driven primarily by cost reductions from fabric manufacturing process optimization. U.S. export performance showed a recovery trend, with March shipments of $8.31M (YoY +47.7%) and April shipments of $10.19M (YoY +37.7%). Tariffs are shared equally between the distributor and the company on a 50/50 basis, and additional distribution channel collaboration with 3M is currently under negotiation.*1

Category	Details
Position	Leading OEM supplier of hydrocolloid wound care dressings in the U.S. market
Competitive Strengths	50.1% gross margin achieved through fabric process optimization; long-term partnership with Church & Dwight
Competitive Weaknesses	Concentration in a single key customer; 50% direct co-sharing of U.S. tariff burden

3. Valuation Analysis

Based on the current price of KRW 63,400 (≈$42.2) as of 2026-05-20, the Trailing PER is 13.5x and the Forward PER based on Naver Finance consensus is 10.0x. Applying Kiwoom Securities Research's 2026E EPS of KRW 8,486 (≈$5.6), the Forward PER is 7.3x*2, which is below the lower bound of the 52-week band. The PBR stands at 2.53x, approximately 2.0x relative to the 2026E BPS of KRW 31,796 (≈$21.2)*2. EV/EBITDA stands at 4.4x*2 on a 2026E basis, with a net debt ratio of -56.2%*2, indicating a net cash position. A resolution to raise DPS from KRW 750 (≈$0.5) to KRW 1,500 (≈$1.0) was approved at the general shareholders' meeting, bringing the 2026E dividend yield to approximately 2.4%*2.

📌 Kiwoom Securities' 2026E PER of 7.3x*2 is at the lower bound of the 52-week band, reflecting the resolution of the 2025 base-effect headwind and a recovery in profit margins.

Metric	Current	Sector Average	Interpretation
Trailing PER	13.5x	N/A	Based on 2025 net income, Naver Finance
Forward PER (Consensus)	10.0x	N/A	Reflects Naver Finance 2026E EPS
Forward PER (Kiwoom Securities)	7.3x*2	N/A	Applies 2026E EPS of KRW 8,486 (≈$5.6); at 52-week band lower bound
PBR	2.53x	N/A	~2.0x vs. 2026E BPS of KRW 31,796 (≈$21.2)*2
EV/EBITDA	4.4x*2	N/A	Reflects net cash position (-56.2%)
Dividend Yield	2.4%*2	N/A	Based on DPS of KRW 1,500 (≈$1.0)

4. Risks and Monitoring Points

Should U.S. tariff policy change, there is a possibility of renegotiating the current 50% cost-sharing arrangement. If key customers such as Church & Dwight alter their inventory policies again, quarterly revenue volatility could increase. Structural risk from a declining KRW/USD exchange rate — which reduces the KRW-equivalent value of dollar-denominated export revenues — also warrants monitoring.

• ⚠️ U.S. tariff policy change — risk of renegotiating distributor cost-sharing ratios
• ⚠️ Key customer inventory policy revision — risk of short-term order volume fluctuations
• ⚠️ KRW/USD depreciation — reduction in KRW-equivalent value of export revenues
• ⚠️ Failure to close 3M channel negotiations — delay in medium-to-long-term revenue growth path

• 📌 Whether quarterly gross margin maintains 50% (50.1% as of 1Q26)
• 📌 Monthly U.S. export value trend (April: $10,188,125, YoY +37.7%)
• 📌 Whether quarterly dividend payments are fulfilled (annual DPS target: KRW 1,500 (≈$1.0))

5. Recent DART Filings

As of the report date (2026-05-22), no significant DART regulatory filings have been identified for T&L (340570).

T&L recorded an operating margin of 40.5% and a gross margin of 50.1% in 1Q26, emerging from the tariff and inventory headwinds of 2025. Key monitoring indicators include the sustainability of the quarterly gross margin, monthly U.S. export value, and dividend policy execution.

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📎 References & Estimation Basis

1. ^*1 The distribution channel collaboration with 3M is referenced only at the level of management commentary in the Kiwoom Securities Research Center report dated 2026-05-18; contract execution and specific terms have not been confirmed.
2. ^*2 2026E PER 7.3x, EV/EBITDA 4.4x, BPS 31,796 KRW (≈$21.2), net debt ratio -56.2%, dividend yield 2.4% — Kiwoom Securities Research Center estimates, report dated 2026-05-18
3. ^*3 USD equivalents (≈$) are approximate, calculated at 1 USD = 1,503 KRW (as of 2026-05-22, source: Yahoo Finance).

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