KOSPIApparel & Living009270

Shinwon

₩1,109▲ 0.54%2026-10-02 close

Market Cap

₩126.4B

Turnover

₩200M

Volume

200,000 shares

Shares out.

110M

PER

20.1×

PBR

0.5×

EPS

₩58

Dividend Yield

4.30%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close

Report overview

Export Rebound Amid Earnings Volatility

ShinWon posted record first-half revenue in 2026 on the back of Central American nearshoring and export strength, but annual and quarterly net income to owners has continued to swing between profit and loss.

1
2025 annual revenue rose 16.3% year over year to KRW 1,092.3 billion, but operating margin slipped to 1.7% and net income attributable to owners turned negative.
2
Consolidated revenue in 2026 Q2 reached KRW 309.9 billion, a quarterly record, with operating profit rising sharply from a year earlier.
3
Despite the operating profit improvement, net income attributable to owners in 2026 Q2 was still negative at roughly KRW -0.9 billion, pointing to continued below-the-line drag.
4
The export OEM/ODM segment accounts for the bulk of revenue, and the company is expanding Central American production bases such as Guatemala under a nearshoring strategy.
5
Over the trailing four quarters (2025 Q3 through 2026 Q2), net income attributable to owners turned positive, suggesting some improvement in the earnings trend.

Business structure

Founded in 1973, ShinWon Corporation operates two main business lines: an export OEM/ODM segment and a domestic fashion segment.

The export segment produces knitwear and sweaters on an OEM/ODM basis at overseas manufacturing bases in Guatemala, Vietnam, Indonesia and Nicaragua, supplying a roster of fixed buyers including GAP, Walmart and Target.

According to recent disclosures, the export segment accounts for roughly 80% of total revenue and is the primary driver of company performance.

The domestic fashion segment sells its own brands, including women's wear labels BESTI BELLI and SI and men's wear labels SIEG and FAHRENHEIT, through department stores, franchise outlets and online channels.

ShinWon also holds exclusive domestic distribution and sales rights for the Italian luxury brand Canali and GCDS, adding a premium-line revenue contribution. Its consolidated subsidiary, ShinWon GLS, runs logistics and real-estate leasing operations that provide a stable supplementary income stream.

In terms of competitive positioning, ShinWon is smaller in scale than large OEM peers such as Hansae, Youngone and Sae-A Trading, and like them relies heavily on large buyers. Its own-brand revenue share is comparatively modest, leaving the domestic fashion segment exposed to swings in consumer spending.

Earnings trend

Quarterly revenue · Operating profit

₩280.2B₩1B25Q2₩281.1B₩1.5B25Q3₩271.4B₩10.1B25Q4₩280.8B₩6.3B26Q1₩309.9B₩7.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩995.4B₩33.4B2022₩834.5B₩23.4B2023₩939.5B₩25.3B2024₩1.1T₩18.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩280.2B	₩1B	0.4%
2025Q3	₩281.1B	₩1.5B	0.5%
2025Q4	₩271.4B	₩10.1B	3.7%
2026Q1	₩280.8B	₩6.3B	2.2%
2026Q2	₩309.9B	₩7.6B	2.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩995.4B	₩33.4B	₩18.1B	3.4%	7.8%	126.2%
2023	₩834.5B	₩23.4B	₩5.9B	2.8%	2.7%	154.9%
2024	₩939.5B	₩25.3B	₩6.3B	2.7%	2.7%	177.3%
2025	₩1.1T	₩18.8B	-₩2.6B	1.7%	−1.1%	181.8%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Consolidated revenue in 2025 rose 16.3% year over year to KRW 1,092.3 billion from KRW 939.5 billion in 2024, yet operating profit actually declined to KRW 18.8 billion from KRW 25.3 billion, pulling the operating margin down from 2.7% to 1.7%.

Net income attributable to owners swung from a profit of KRW 6.3 billion in 2024 to a loss of KRW 2.6 billion in 2025.

Looking across four years, revenue fell from KRW 995.4 billion in 2022 to KRW 834.5 billion in 2023 before recovering in 2024-2025, while the operating margin steadily narrowed from 3.4% in 2022 to 2.8% in 2023, 2.7% in 2024 and 1.7% in 2025.

On a quarterly basis, revenue of KRW 280.2 billion in 2025 Q2 came with a net loss to owners of KRW 4.9 billion, followed by a KRW 0.8 billion loss in Q3 on revenue of KRW 281.1 billion, before the company swung to a KRW 4.5 billion profit in Q4 on revenue of KRW 271.4 billion.

The profit streak continued into 2026 Q1 with revenue of KRW 280.8 billion and net income to owners of KRW 1.7 billion, but in 2026 Q2, even as revenue hit a quarterly record of KRW 309.9 billion and operating profit expanded to KRW 7.6 billion, net income to owners fell back into a loss of roughly KRW 0.9 billion.

This recurring pattern, where operating profit improvement does not translate directly into owner-attributable net profit, suggests that non-operating factors continue to weigh on bottom-line results.

Media reports indicated that in 2026 Q2 the export segment's operating profit jumped 217% year over year while the domestic fashion segment's operating profit rose 150%, showing improvement across both business lines.

Still, on a trailing four-quarter basis (2025 Q3 through 2026 Q2), cumulative net income to owners came in positive at roughly KRW 4.4 billion, indicating that despite quarter-to-quarter volatility, the recent trend has been one of improvement.

Industry analysis

The global apparel OEM industry saw heightened tension in 2025 following announcements of steep US tariff plans, but by 2026 tariff concerns had eased considerably and US apparel retailer inventory levels had fallen, shifting the environment to a more favorable one.

One brokerage research report characterized the 2026 second-half apparel OEM environment as one where easing tariff worries, low US inventory and stable consumption trends were converging simultaneously.

Large peers Youngone Corporation and Hansae Corporation each derive a high share of revenue from the United States, and recent results showed their profitability diverging in opposite directions depending on product mix and supply-chain response.

Domestic apparel OEM companies including ShinWon have commonly pursued a nearshoring strategy, expanding production bases into Central America such as Guatemala in addition to Southeast Asia, a move interpreted as diversifying tariff and logistics risk.

Within the sector, ShinWon is classified as a smaller player relative to large peers such as Hansae and Youngone, and tends to rank lower in analyst preference orderings.

One brokerage also noted that expected 2026 price-to-earnings multiples for the apparel OEM sector overall were trading at a lower multiple than the average for the distribution sector.

Analysts have also pointed out that a stronger won-dollar exchange rate acts as a revenue- and profit-boosting factor for domestic OEM firms as dollar-denominated sales are translated into won.

Outlook

ShinWon has stated it plans to continue expanding production capacity, strengthening cooperation with existing buyers and securing new clients in the second half of 2026.

In the export segment, the company continues a nearshoring strategy that adds Central American production infrastructure alongside its Asian manufacturing bases; in Guatemala specifically, the number of manufacturing plants has grown from just one at initial entry to six as of the end of last year.

In the domestic fashion segment, the company plans to continue restructuring inefficient distribution networks and reorganizing stores and sales channels by brand characteristics, with menswear brands focusing on premium outlets and online marketing while womenswear brands pursue large-scale promotions at roadside stores and major shopping malls.

The company has also indicated a plan to dualize channels for its premium casual line, expanding it into department stores and premium outlets.

Industry-wide, there is a view that normalization of US apparel retail inventory could lead to expanded orders that align with peak seasonal demand in the second half, though concerns about a global consumption slowdown and the possibility of renewed shifts in tariff policy remain variables.

Management has articulated a direction of upgrading its business fundamentals and pursuing stable profitability improvement, but no specific annual guidance figures were found in public disclosures.

Future results are likely to hinge on export segment utilization rates and buyer order flow, the outcome of domestic fashion distribution restructuring, and whether non-operating factors stabilize.

Valuation

PER

20.1×

PBR

0.5×

ROE

2.0%

EPS

₩58

BPS

₩2,572

Dividend per share

₩50

ShinWon's share price, based on our own calculation, trades below its net asset value per share, a relationship that has persisted through several recent years marked by earnings weakness.

Following 2025, when revenue grew even as the operating margin declined and net income to owners turned negative, the market appears to be pricing in a low degree of confidence in near-term earnings estimates.

Given that net income attributable to owners returned to profitability on a trailing four-quarter basis, there is also room to interpret this as an early stage of earnings recovery.

On the dividend side, the company has not gone fully without dividends and has maintained a modest but consistent level of cash distribution.

At the sector level, some brokerages have assessed that apparel OEM valuations trade at lower multiples than the distribution sector average, though that assessment applies to the sector broadly rather than to ShinWon specifically.

Ultimately, given the recurring earnings volatility, interpreting valuation metrics requires looking at multi-year trends rather than any single quarter or single year's figures.

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 2026-08-23

Bull factors

Nearshoring-Driven Export Recovery

The Guatemala production base is being expanded from 1 to 6 factories, indicating that a nearshoring strategy for Central and South America is underway, and operating profit in the export division for Q2 2026 was reported to have increased 217% year-on-year.

This is interpreted as the combined result of restructuring the production network, expanding production lines, and increased orders from major buyers. Securing production bases closer to consumer markets is evaluated as a strategy to enhance delivery responsiveness and logistics efficiency.

Improving Domestic Fashion Profitability

Operating profit in the domestic fashion division for Q2 2026 was reported to have increased 150% year-on-year, explained as the effect of reorganizing low-efficiency distribution networks and restructuring channels by brand.

Men's and women's apparel brands appear to have simultaneously improved both top-line and profitability through premium outlets, online channels, and large roadshop promotions. Holding distribution rights for an Italian luxury brand is also cited as a factor contributing to profits in the premium line.

Favorable Industry Turn

As U.S. tariff concerns have eased and apparel inventory levels have fallen since 2026, the apparel OEM industry environment is being evaluated as favorable.

If peak-season demand and inventory restocking demand overlap in the second half, this could positively affect the overall order environment for domestic OEM companies.

The rising trend in the KRW/USD exchange rate is also cited as a factor that could boost revenue for domestic OEM companies that convert dollar-denominated sales into Korean won.

Bear factors

Multi-Year Decline in Operating Margin

The operating profit margin showed a trend of declining for four consecutive years, falling from 3.4% in 2022 to 2.8% in 2023, 2.7% in 2024, and 1.7% in 2025. Even in 2024-2025, when sales increased, the absolute size of operating profit actually decreased.

If cost burdens or structural business factors persist, sales growth alone may not be sufficient to guarantee an improvement in profitability.

Recurring Net Income Volatility

Net profit attributable to controlling shareholders recorded a loss for full-year 2025, and despite a significant increase in operating profit in Q2 2026, net profit attributable to controlling shareholders turned to a loss again.

A pattern in which improvements in operating profit do not immediately translate into net profit surpluses has been repeating in recent quarters. This suggests that non-operating factors are acting as a factor lowering the predictability of earnings.

Scale Disadvantage and Intensifying Competition

Shinwon is a small-to-mid-sized player with a smaller sales scale compared to large OEM companies such as Hansae and Youngone, and tends to be placed relatively lower in industry preference rankings.

It may be at a disadvantage compared to large companies in terms of bargaining power with major buyers and economies of scale. If a slowdown in global consumption or a reduction in orders from buyers occurs, it is likely to be relatively more affected.

Risk factors

Trade and Tariff Risk

The United States announced plans for steep tariffs on major production countries including Vietnam, Bangladesh and Indonesia in 2025, and such trade policy could shift again going forward.

Domestic OEM companies including ShinWon have responded with nearshoring, but a renewed tightening of tariff policy could reintensify cost pressure. The more production is concentrated in specific countries, the greater the exposure to policy shifts becomes.

Currency Volatility Risk

Because the export segment translates dollar-denominated sales into won, revenue and profit are sensitive to won-dollar exchange rate movements.

Recent currency appreciation of the dollar against the won has been cited as a favorable factor for results, but the same logic means a reversal in the exchange rate could weigh on performance.

The local-currency cost structure of overseas manufacturing subsidiaries can also amplify the profit and loss impact of currency swings.

Governance and Scale Risk

ShinWon has reportedly had a history involving management's detention and parole related to past embezzlement allegations, warranting continued attention to whether governance-related legacy issues have been fully resolved.

The company also carries small-cap characteristics, including a small market capitalization, that can lead to elevated share price volatility.

The possibility that the stock's price could be influenced by thematic supply-demand factors unrelated to fundamentals, such as inter-Korean economic cooperation narratives, cannot be ruled out.

What to watch next

Mid-November 2026
Watch for the 2026 Q3 preliminary earnings disclosure and whether operating profit improvement continues across the export and domestic fashion segments.
During Q4 2026
Check whether utilization rates at Central American production bases such as Guatemala rise further and whether new buyer acquisitions materialize.
Late 2026 to early 2027
Continue monitoring whether changes in US tariff policy toward Vietnam, Bangladesh and other sourcing countries affect the company's cost structure.
February-March 2027
The 2026 full-year confirmed results and dividend decision disclosure will be a point to check whether net income volatility has eased.

Overall view

ShinWon posted record quarterly revenue in the first half of 2026 on combined growth in its export and domestic fashion segments, yet on an annual basis in 2025 the operating margin declined and net income attributable to owners turned negative even as revenue grew.

Through 2026, quarterly results have alternated between profit and loss, and in Q2, even as operating profit rose sharply, net income to owners fell back into a loss, underscoring the continued influence of non-operating factors.

Still, on a trailing four-quarter basis net income to owners has turned positive, which can be read as an early sign of improving earnings momentum.

On the business side, the company continues to advance its Central American nearshoring strategy and distribution network restructuring, and the broader industry backdrop has been described as favorable amid easing tariff concerns and normalizing US inventory levels.

Countervailing factors that still warrant attention include the possibility of renewed shifts in trade policy, currency volatility, the company's smaller scale relative to large OEM peers, and its past governance history.

Investors will want to continue watching whether the gap between operating profit and net income narrows in coming quarters and whether the nearshoring strategy's benefits prove durable.

Sources

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

Show 18 more articles and sources

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.