PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Ontide swung to a quarterly operating and net profit in Q2 2026, but with losses in three of the past four fiscal years, earnings stability still needs further confirmation.
Q2 2026 revenue reached KRW 70.0 billion, with operating profit of KRW 6.56 billion and owner net profit of KRW 4.67 billion, marking a clear quarterly swing to profit.
FY2025 annual revenue fell about 13% year-on-year to KRW 231.5 billion from KRW 265.9 billion, while the operating loss narrowed sharply to KRW 1.86 billion from KRW 4.35 billion.
However, the 2025 owner net loss widened to KRW 10.71 billion from KRW 3.79 billion the prior year, moving in the opposite direction from the operating-loss improvement.
In July 2025, the controlling shareholder changed from Chris F&C to Cosmo Investment, a firm specializing in OEM operations, altering the company's governance structure.
In Q1 2026, losses at the Indonesian and Mexican production subsidiaries combined with weak U.S. sales to widen losses again, underscoring high quarter-to-quarter volatility.
Ontide was founded in 1967 as knit apparel exporter 'Kukdong' and listed on the KOSPI in 1996, before adopting its current name in 2024. Its core business is OEM production and export of knit apparel, with major buyers including FANATICS, CARHARTT, VF, and H&M.
The company manufactures garments through its Indonesian production subsidiary, while Mexico-based KUKDONG TEXTILE provides a vertically integrated production chain from yarn to finished goods.
It established Mexican and U.S. subsidiaries in 1999 to enter the North American market, and the Americas region is known to account for a substantial share of export segment sales.
Beyond apparel, the company also operates bio and health-supplement businesses, though apparel remains overwhelmingly dominant in revenue mix.
In July 2025, former controlling shareholder Chris F&C transferred a 25% stake (16,880,555 shares) to Cosmo Investment for KRW 30 billion at KRW 1,777 per share, handing over management control.
Cosmo Investment is known as an OEM-specialized firm with over 20 years of global production and operations experience, raising expectations for enhanced OEM expertise going forward.
Domestic peers in the apparel OEM/ODM export space include Hansae, Youngone, Hojeon Industries, and Willbes, with which the company competes on global production bases and buyer portfolios.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩57.8B | -₩4.4B | −7.6% |
| 2025Q3 | ₩51.4B | -₩800M | −1.5% |
| 2025Q4 | ₩60.6B | -₩200M | −0.4% |
| 2026Q1 | ₩56.7B | -₩5.5B | −9.7% |
| 2026Q2 | ₩70B | ₩6.6B | 9.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩329.9B | ₩17B | ₩1.4B | 5.2% | 1.3% | 60.5% |
| 2023 | ₩224.4B | -₩3.6B | -₩8.5B | −1.6% | −7.7% | 58.8% |
| 2024 | ₩265.9B | -₩4.3B | -₩3.8B | −1.6% | −3.3% | 50.7% |
| 2025 | ₩231.5B | -₩1.9B | -₩10.7B | −0.8% | −10.2% | 56.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual results show FY2022 revenue of KRW 329.9 billion with an operating profit of KRW 17.0 billion (5.2% operating margin), but FY2023 revenue plunged to KRW 224.4 billion, flipping to an operating loss of KRW 3.58 billion and a net loss of KRW 8.51 billion.
FY2024 revenue rebounded to KRW 265.9 billion, yet the operating loss persisted at KRW 4.35 billion. In FY2025, revenue fell again to KRW 231.5 billion (down roughly 13% year-on-year), but the operating loss narrowed sharply to KRW 1.86 billion, confirming improvement at the operating level.
However, the owner net loss widened to KRW 10.71 billion from KRW 3.79 billion the prior year, suggesting non-operating factors weighed on the bottom line.
On a quarterly basis, the operating loss shrank from KRW 4.42 billion in Q2 2025 to KRW 0.78 billion in Q3 and KRW 0.23 billion in Q4, before widening again to KRW 5.52 billion in Q1 2026. This was attributed to losses across the Indonesian and Mexican production subsidiaries combined with weak sales at the U.S. unit.
The company then posted a clear quarterly turnaround in Q2 2026, with revenue of KRW 70.0 billion, operating profit of KRW 6.56 billion, and owner net profit of KRW 4.67 billion, though the specific drivers behind this improvement have not yet been detailed in disclosures.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative owner net income totaled approximately negative KRW 5.79 billion, reflecting a highly volatile earnings structure that frequently flips sign quarter to quarter.
The knit apparel OEM export business Ontide operates in is heavily influenced by global brand order cycles and U.S./European consumer spending trends. In recent years, slowing global demand and reduced orders from major clients have been cited as key drivers of revenue declines.
Competition persists among low-cost Asian production bases such as Indonesia, Vietnam, and Bangladesh, while cost competitiveness at nearshoring bases including Mexico also remains a key variable.
Domestic peers such as Hansae and Youngone similarly run OEM/ODM operations for North American and European brands, competing on diversification of global production bases.
The company has sought cost competitiveness through vertical integration between its Indonesian production subsidiary and Mexico's KUKDONG TEXTILE, but this also exposes it to structural risk when losses occur simultaneously across overseas subsidiaries, as seen in Q1 2026.
From a cycle standpoint, whether brand clients' inventory adjustments have progressed enough for order volumes to recover will likely be a key variable for future results.
No specific numerical guidance from the company has been confirmed in available disclosures.
However, since the new controlling shareholder Cosmo Investment is known as an OEM-specialized firm following the July 2025 management change, future operational efficiency improvements or business restructuring in the OEM segment could be a key focus area.
Given that losses at the Indonesian and Mexican production subsidiaries in Q1 2026 were followed by a swing to profit in Q2, whether this improvement reflects a one-off factor or structural cost efficiency gains needs to be assessed through subsequent quarterly results.
No disclosures regarding new capacity expansion or major new product lineups have been confirmed to date, leaving the continuity of contracts with existing buyers (FANATICS, CARHARTT, VF, H&M) as a key variable for the revenue base.
Specific expansion plans for the bio and health-supplement businesses have also not been confirmed in publicly available materials. Overall, the key watch points ahead are whether the quarterly earnings trend stabilizes and whether tangible strategic changes emerge following the governance transition.
Ontide has posted losses in three of the past four fiscal years, meaning it has yet to establish a stable earnings base, and this earnings volatility can be a factor influencing how the market values the stock.
The shares tend to trade below the company's book value per share, without a large premium to net assets being reflected. The company has not paid cash dividends through its most recent fiscal year, leaving shareholder returns via dividends relatively weaker compared to dividend-paying peers in the sector.
While a turnaround to profit was confirmed in Q2 2026, losses had recurred over several preceding quarters, making the durability of this improvement over coming quarters a point that could influence future market assessment.
Given the recurring pattern of a profitable year in 2022 followed by subsequent loss-making periods, valuation judgments are likely to hinge heavily on confirmation of the future earnings trajectory.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Q2 2026 posted revenue of KRW 70.0 billion, operating profit of KRW 6.56 billion, and owner net profit of KRW 4.67 billion, swinging from a large loss in the prior quarter to profit. Viewed alongside the loss-narrowing trend from Q2 through Q4 2025, this could be read as a sign of cost-structure improvement. However, a single quarter's results are insufficient to confirm a durable trend.
Management control transferred from Chris F&C to Cosmo Investment in July 2025, with Cosmo Investment known as an OEM-specialized firm with over 20 years of global production and operations experience. The market has shown expectations that this transition would enhance OEM segment expertise.
However, the actual operating track record under the new controlling shareholder has not yet been sufficiently verified.
The company maintains OEM contracts with multiple global brands including FANATICS, CARHARTT, VF, and H&M, which somewhat mitigates reliance on any single buyer. The vertically integrated structure between Indonesian production and Mexico's KUKDONG TEXTILE can serve as a strength for cost management.
However, the pace at which this base translates into actual profitability improvement varies significantly by quarter.
FY2025 revenue fell about 13% year-on-year to KRW 231.5 billion, and compared with KRW 329.9 billion in 2022, the revenue base has contracted significantly over four years. Slowing global demand and reduced orders from major clients have been cited as the primary drivers of the decline. If the revenue base fails to expand again, the sustainability of future profit improvement could be limited.
While the FY2025 operating loss narrowed substantially versus the prior year, the owner net loss widened to KRW 10.71 billion, up more than 182% from KRW 3.79 billion a year earlier.
This suggests non-operating factors placed considerable pressure on the bottom line, though the specific detailed cause is not identifiable within the confirmed data covered by this report. A structure where operating and net income metrics move in opposite directions raises interpretive uncertainty around results.
In Q1 2026, losses occurred broadly across the Indonesian and Mexican production subsidiaries while U.S. unit sales were also weak, widening the operating loss to KRW 5.52 billion.
Although Q2 saw a swing to profit, the possibility of losses recurring simultaneously across multiple overseas production bases cannot be ruled out. The frequent sign changes in quarterly earnings underscore the difficulty of forecasting results.
Given the global OEM export structure, fluctuations in the KRW/USD exchange rate and in raw material and labor costs can directly affect earnings. Operating production bases across multiple countries including Indonesia and Mexico exposes the company to wage and energy cost changes in each jurisdiction.
Since non-operating factors are presumed to be behind the widened FY2025 net loss, monitoring of FX and financial income/loss volatility is warranted.
A substantial portion of revenue depends on orders from a small number of global brands including FANATICS, CARHARTT, VF, and H&M. A reduction in orders or a change in contract terms by any of these buyers could directly affect revenue and profitability. Changes in brand inventory policy or sourcing strategy also remain a potential risk.
Since the controlling shareholder changed to Cosmo Investment in July 2025, the substantive direction of any strategic change has not yet been sufficiently confirmed.
Given past disclosures of convertible bond conversion price adjustments, potential equity dilution from future conversion rights exercise remains a latent risk.
Should business restructuring or capital policy changes emerge under the new governance structure, their impact on shareholder value warrants continued monitoring.
Check the Q3 2026 earnings release to see whether the Q2 turnaround to profit continues and whether the Indonesian and Mexican production subsidiaries' earnings stabilize.
Monitor disclosures on convertible bond conversion rights exercise and any resulting changes in share count to assess potential equity dilution.
Watch for additional disclosures related to business restructuring or strategic changes under the Cosmo Investment-led governance structure.
Assess how any tariff or trade policy changes affecting apparel exports to the United States might impact orders from major buyers such as FANATICS and Carhartt.
Ontide posted a profit in 2022 followed by consecutive losses in 2023 and 2024, and in 2025 the operating loss narrowed even as the owner net loss widened, producing a mixed picture.
Quarterly results showed a loss-narrowing trend from Q3 through Q4 2025, before losses widened again in Q1 2026, followed by a marked swing to profit across revenue, operating income, and net income in Q2.
In July 2025, the controlling shareholder changed from Chris F&C to OEM-specialized firm Cosmo Investment, marking a concurrent governance shift.
On the business side, the company relies on multiple global buyers such as FANATICS, CARHARTT, VF, and H&M along with a vertically integrated production system centered on Indonesia and Mexico, but this structure also carries the risk of simultaneous losses across overseas production subsidiaries.
Key points to watch going forward are whether the Q2 turnaround to profit continues into subsequent quarters and whether tangible strategic changes emerge under the new governance structure. This report does not present an investment opinion or target price and is provided for informational purposes only.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.