KOSPIHolding Companies007700

F&F Holdings

₩13,380▲ 0.22%2026-10-02 close

Market Cap

₩521.8B

Turnover

₩37,913,730

Volume

2,840 shares

Shares out.

39.1M

PER

3.4×

PBR

0.2×

EPS

₩4,214

Dividend Yield

3.17%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩450 per share · Prices as of the 2026-10-02 close

Report overview

MLB Wobbles, TaylorMade Holds the Key

F&F Holdings is a holding company whose results track its listed subsidiary F&F's domestic and China performance led by MLB and Discovery, and after a China growth slowdown shook second-quarter 2026 earnings, the disposition of its TaylorMade stake has emerged as the next swing factor.

1
Owner net income surged to KRW 65.2 billion in 1Q26 but fell sharply to KRW 17.0 billion in 2Q26, showing wide quarter-to-quarter swings.
2
Annual revenue oscillated in the KRW 1.8-2.0 trillion range from 2022-2025, while the operating margin slipped from 26.8% in 2022 to 21.9% in 2024 before edging up to 22.5% in 2025.
3
Analysts noted that subsidiary F&F's China unit sales growth slowed to roughly 4% in 2Q26, missing market expectations.
4
Whether TaylorMade is sold to a third party or F&F exercises its right of first refusal to consolidate the brand is cited as the key second-half variable.
5
Non-controlling interests make up a large share of total equity under the holding structure, creating a wide gap between total net income and owner net income.

Business structure

F&F Holdings is a pure holding company that owns roughly 62.8% of KOSPI-listed fashion firm F&F (383220), so the subsidiary's operating results flow directly into the consolidated financials.

Core subsidiary F&F operates MLB, MLB Kids, Discovery Expedition, Duvetica, Sergio Tacchini and Supra, while the group also includes F&CO, which runs the beauty brand VDL/Vanilla Co.

As of 1Q26, the domestic unit accounted for about 52.98% of sales and the China unit about 42.26%, with Hong Kong, Vietnam and Sergio Tacchini together making up only around 5%, meaning the domestic and China markets effectively determine group performance.

MLB began in 1997 as a licensed brand built on Major League Baseball rights in Korea and has expanded into caps, apparel, footwear and bags, becoming a lifestyle brand in China.

Discovery Expedition, for which F&F secured exclusive Asian licensing rights in 2024, is the second brand through which the group is trying to replicate MLB's success in new markets.

Separately, F&F invested KRW 558 billion as a strategic investor when private equity firm Centroid Investment Partners acquired global golf brand TaylorMade in 2021, securing a right of first refusal and consent rights over major decisions.

Competitively, the group faces local Chinese sportswear players and other licensed foreign brands in China, and brand-versus-brand competition within the domestic outdoor and sport-casual categories.

Because the holding company itself has minimal standalone operations, its results are driven almost entirely by subsidiary F&F's brand strength and Chinese consumer conditions.

Earnings trend

Quarterly revenue · Operating profit

₩378.7B₩74.5B25Q2₩474.2B₩119.8B25Q3₩575.2B₩124.3B25Q4₩560.9B₩145.7B26Q1₩399.8B₩77.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩1.8T₩486.2B2022₩2T₩514.4B2023₩1.9T₩416.4B2024₩1.9T₩434.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩378.7B	₩74.5B	19.7%
2025Q3	₩474.2B	₩119.8B	25.3%
2025Q4	₩575.2B	₩124.3B	21.6%
2026Q1	₩560.9B	₩145.7B	26.0%
2026Q2	₩399.8B	₩77.2B	19.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩1.8T	₩486.2B	₩132.2B	26.8%	6.4%	24.4%
2023	₩2T	₩514.4B	₩122.3B	25.9%	5.7%	20.2%
2024	₩1.9T	₩416.4B	₩107B	21.9%	4.8%	19.7%
2025	₩1.9T	₩434.2B	₩125.7B	22.5%	5.4%	19.2%

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

Earnings analysis

Annual revenue moved from KRW 1.8168 trillion in 2022 to KRW 1.9863 trillion in 2023, then dipped to KRW 1.8983 trillion in 2024 before recovering to KRW 1.9338 trillion in 2025.

Operating profit peaked at KRW 486.2 billion in 2022 and KRW 514.4 billion in 2023, fell to KRW 416.4 billion in 2024, and edged back up to KRW 434.2 billion in 2025, with the operating margin following a similar path from 26.8% and 25.9% down to 21.9% in 2024 before rebounding to 22.5% in 2025.

Owner net income declined for three straight years, from KRW 132.2 billion in 2022 to KRW 122.3 billion in 2023 and KRW 107.0 billion in 2024, before recovering to KRW 125.7 billion in 2025.

The quarterly pattern is even more pronounced: from 2Q25 revenue of KRW 378.7 billion, operating profit of KRW 74.5 billion and owner net income of KRW 16.4 billion, results improved for three consecutive quarters to 3Q25 (KRW 474.2 billion / KRW 119.8 billion / KRW 36.7 billion) and 4Q25 (KRW 575.2 billion / KRW 124.3 billion / KRW 45.7 billion).

In 1Q26, revenue jumped to KRW 560.9 billion, operating profit to KRW 145.7 billion and owner net income to KRW 65.2 billion, but 2Q26 saw a sharp reversal to KRW 399.8 billion, KRW 77.2 billion and KRW 17.0 billion, respectively.

Per subsidiary F&F's (383220) preliminary disclosure, domestic MLB and kids-line sales grew 18% and 23% respectively in 2Q26, but China unit sales growth of only about 4% was cited as the main driver of the overall slowdown, with advertising spending up roughly 32% year over year also weighing on profitability.

The gap between total net income and owner net income reflects sizable non-controlling interests in subsidiaries such as F&F (383220): at end-2025, non-controlling interests stood at KRW 1.3307 trillion out of KRW 3.6429 trillion in total equity, structurally limiting the portion attributable to the holding company.

Industry analysis

Domestic fashion consumption appears to be benefiting partly from a recovery in inbound tourism and improved domestic sentiment, which is reflected in MLB and MLB Kids' domestic sales growth.

China remains the pivotal variable for group results; apparel retail sales in China rose 9.3% year over year in 1Q26, confirming a consumption recovery, but analysts note a possible decoupling between local consumption and reported sales growth due to headquarters-level inventory management.

MLB's China store count is expanding only modestly each year, with the strategy shifting toward same-store sales growth and per-store efficiency as the primary growth driver rather than aggressive store openings.

Discovery Expedition is still expanding stores in China but its earnings contribution remains at an early, limited stage, and store-count guidance has been revised down in some cases.

On the competitive front, some observers note that the rise of local Chinese sportswear brands and a nationalistic consumption trend could affect the growth pace of certain licensed foreign brands.

Meanwhile, TaylorMade, in which the group holds a strategic investment, is regarded as maintaining a stable position in the global golf equipment market, and the resolution of this asset's ownership is emerging as a variable that could affect the group's portfolio diversification.

Outlook

Subsidiary F&F raised its annual revenue growth guidance from 4-5% to 7% after a strong first quarter, and had disclosed a corporate value-up plan targeting a 2024-2027 revenue CAGR of 10%, an average shareholder return ratio above 25%, and a minimum dividend of KRW 2,000 per share.

However, the second-quarter slowdown in China-unit growth has refocused market attention on whether these targets remain achievable in the second half.

Analysts note that second-half momentum will hinge on Discovery's larger revenue contribution during the fourth-quarter outdoor peak season and on when China inventory adjustments are completed. Separately, negotiations over TaylorMade's sale or acquisition are ongoing.

Seller Centroid Investment Partners is reportedly seeking new bidders with a goal of closing a deal within the year, while F&F has extended letters of commitment for roughly KRW 4 trillion in acquisition financing and bridge loans arranged with Samsung Securities, Mirae Asset Securities and Korea Investment & Securities, positioning itself to exercise its right of first refusal if needed.

In a June 2026 report, Eugene Investment & Securities estimated that if TaylorMade were sold at a valuation of KRW 4.2 trillion, F&F could realize an after-tax gain of roughly KRW 700 billion, while noting that a direct consolidation by F&F could instead cause short-term earnings dilution from one-off costs.

Hanwha Investment & Securities, in an August 2026 report, trimmed its target price for subsidiary F&F from KRW 105,000 to KRW 100,000, saying growth expectations for the China unit should be lowered.

The final direction and timing of the TaylorMade deal remain undecided, and the outcome could materially affect the group's cash flow and business portfolio composition.

Valuation

PER

3.4×

PBR

0.2×

ROE

7.1%

EPS

₩4,214

BPS

₩60,885

Dividend per share

₩450

F&F Holdings appears to trade at a substantial discount to net asset value, consistent with the general tendency of Korean holding companies to trade below the value of their underlying operating subsidiaries.

Dividend yield is calculated from the confirmed cash dividend, and while an absolute comparison against sector peers is difficult to assert definitively, the holding-company discount has been a recurring theme raised in the market.

In terms of earnings trend, owner net income shifted from a multi-year decline into a recovery phase starting in 2025, though the sharp quarter-to-quarter swing seen around 2Q26 warrants caution when interpreting valuation levels.

The fact that brokerages have described subsidiary F&F (383220) as trading at low multiples relative to its net asset value is a relevant reference point for assessing the holding company's asset value through its equity stake.

However, because the resolution of the TaylorMade stake remains undecided, investors may differ on how much of this potential asset value is already reflected in the current market price.

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

Bull factors

Cash inflow or asset expansion from TaylorMade deal resolution

If TaylorMade is sold, F&F could realize an after-tax gain of roughly KRW 700 billion per Eugene Investment & Securities' estimate, which could fund expanded shareholder returns or new brand investments.

Alternatively, if F&F exercises its right of first refusal to acquire the brand directly, the global golf company would be consolidated, expanding the business portfolio. F&F has extended roughly KRW 4 trillion in financing commitments with three major securities firms to prepare for either scenario.

MLB benefiting from domestic inbound tourism and improving China store efficiency

Domestic MLB and MLB Kids sales are reported to have grown 18% and 23% respectively in 2Q26, reflecting rising inbound tourism and a domestic consumption recovery. In China, the strategy has shifted from aggressive store openings toward same-store sales growth, with per-store efficiency reportedly improving. In 1Q26, China sales grew 17.2% year over year and drove overall results.

Growth potential from Discovery and other second brands' China expansion

Discovery Expedition began expanding into China in earnest after F&F secured exclusive Asian licensing rights in 2024, forming a mid- to long-term strategic pillar for applying MLB's success formula to other brands.

The fourth quarter, as the outdoor peak season, is when Discovery's revenue share increases, making it a key variable for second-half results. If brand portfolio diversification succeeds, it could ease reliance on MLB alone for China sales.

Bear factors

China unit growth slowdown and headquarters inventory adjustment

China unit sales growth is reported to have slowed to about 4% in 2Q26, missing market expectations. Analysts also flagged that continued headquarters-level inventory management could create a gap between local consumption recovery and reported sales growth. A 32% year-over-year increase in advertising spending was also cited as a drag on profitability.

Wide quarterly volatility in owner net income

Owner net income swung from KRW 65.2 billion in 1Q26 to just KRW 17.0 billion in 2Q26, illustrating substantial quarter-to-quarter variability. Such volatility makes underlying trends harder to read and complicates drawing directional conclusions from any single quarter.

The large non-controlling interest inherent in the ownership structure can also amplify swings in the income attributable to owners.

Uncertainty and financing burden around the TaylorMade deal

Because a previously selected preferred bidder lost its status in early 2026 after failing to submit financing commitment letters, the risk of further delay or deal collapse cannot be ruled out.

If F&F opts for a direct acquisition, reliance on trillion-won-scale financing and structured instruments such as total return swaps or price return swaps could increase, and analysts note that one-off costs could dilute short-term earnings initially.

Legal risk also persists given past disputes between seller Centroid and F&F over consent rights during the negotiation process.

Risk factors

China revenue concentration risk

As of 1Q26, the China unit accounted for over 42% of sales, meaning group results are concentrated in just the domestic and China markets. Exposure to external variables such as Chinese consumer conditions, yuan exchange rates, intensifying local brand competition, and nationalistic consumption trends is elevated.

Changes in inventory management or shipment timing in a single quarter alone can significantly amplify earnings volatility.

M&A execution and financing risk

The TaylorMade-related deal requires financing in the trillions of won, and as seen with a previous preferred bidder's failed financing, the transaction itself could be delayed or fall through again.

If F&F exercises its right of first refusal to acquire directly, financial burdens from structured financing and post-acquisition integration costs such as PPA amortization could dilute earnings in the short term.

A prolonged period of uncertainty over the deal's final structure and timing could also dilute market attention.

Governance and non-controlling interest structure risk

At end-2025, non-controlling interests of KRW 1.3307 trillion represented a substantial share of total equity, meaning a significant portion of subsidiary earnings growth accrues outside the holding company's attributable share.

This implies that improvements in subsidiary performance may not fully translate into the holding company's net income. The complex web of affiliates and investment structures within the group may also keep market attention on governance transparency.

What to watch next

Late October to early November 2026
F&F Holdings and subsidiary F&F's third-quarter earnings release — a point to check whether China unit growth rebounds and how much Discovery contributes to sales.
During the fourth quarter of 2026
Whether the TaylorMade sale closes or F&F exercises its right of first refusal — the negotiation, targeted for closing within the year, should be monitored for its final direction.
Fourth quarter 2026 (outdoor peak season)
Whether Discovery's domestic and overseas sales share expands — a gauge for the direction of second-half profitability.
December 2026
Whether the revised China store-count target for Discovery is met — a basis for judging the pace at which the second brand takes root in China.
Early 2027
Disclosure of FY2026 dividends and progress on the corporate value-up plan — a point to verify actual achievement against revenue growth and shareholder return targets.

Overall view

F&F Holdings is a holding company whose performance tracks subsidiary F&F's MLB and Discovery brand strength along with domestic and Chinese consumer conditions, and after fluctuating from 2022 to 2025, its earnings entered a recovery phase in 2025.

However, as seen when owner net income jumped to KRW 65.2 billion in 1Q26 before plunging to KRW 17.0 billion in 2Q26, quarter-to-quarter volatility is substantial, driven by a combination of China unit growth deceleration and rising advertising costs.

Whether TaylorMade is sold or acquired is a pivotal variable that could bring hundreds of billions of won in one-off gains or losses and reshape the business portfolio, and no final decision has yet been reached.

The structural feature of large non-controlling interests, which means subsidiary earnings improvements do not fully flow through to holding-company net income, also warrants consideration.

Bullish factors include domestic inbound tourism benefits, improving China store efficiency, and potential realization of TaylorMade's asset value, while bearish factors include the China growth slowdown, quarterly volatility, and M&A financing risk.

Ahead of any investment decision, it appears worthwhile to monitor both third-quarter results and the progress of the TaylorMade deal together.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.