PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Hyungji I&C swung to a joint operating and net profit in the second quarter of 2026 for the first time in five quarters, but its designation as a KOSDAQ managed-stock issuer in August 2026 has made continued listing eligibility the key variable to watch.
In Q2 2026, operating profit of roughly KRW 100 million and net profit of about KRW 30 million ended five consecutive quarters of losses.
The company was designated a KOSDAQ managed stock on August 4, 2026 after its market capitalization stayed below KRW 20 billion for over 30 days.
The company completed a 90% capital reduction in April 2026 and finished a rights-offering payment in June 2026, reshaping its capital structure.
The company is pursuing a three-region overseas strategy spanning China, Japan, and Europe, including a Douyin storefront, Japanese home-shopping entry, and an Italian textile partnership.
Sales at the company's online mall Hyjin.com rose 52% over the most recent year, with a 2026 e-commerce revenue target of KRW 6 billion.
Hyungji I&C is a Hyungji Fashion Group affiliate engaged in the manufacturing and retail of apparel, operating the shirt brand YEZAC, menswear brand BON, and womenswear brands Carries Note and BON:E.
Distribution runs through department-store channels and the company's own online mall, Hyjin.com, and the firm recently reorganized its online team into a CEO-direct Velocity Commerce (VC) division to expand e-commerce.
YEZAC has been a core cash-cow brand, having sold a cumulative 8.49 million units since joining Hyungji Fashion Group in 2013 through June of this year. Carries Note has emerged as a growth driver within the brand portfolio as its online sales expand rapidly.
The competitive landscape features numerous small and mid-sized domestic fashion companies facing share pressure from online platforms and fast-fashion brands, and Hyungji I&C is not insulated from this dynamic.
To offset stagnation in the domestic market, the company is pursuing a parallel overseas strategy spanning China, Japan, and Europe. Hyungji I&C forms part of a three-company listed structure alongside group affiliates Hyungji Global (Castelbajac, among others) and Hyungji Elite (school uniforms).
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩14.2B | -₩1B | −7.1% |
| 2025Q3 | ₩10.3B | -₩2B | −19.7% |
| 2025Q4 | ₩14.4B | -₩2.3B | −15.9% |
| 2026Q1 | ₩12.1B | -₩1.3B | −10.6% |
| 2026Q2 | ₩14.5B | ₩51,696,967 | 0.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩70.5B | ₩2.4B | -₩700M | 3.4% | −2.3% | 106.6% |
| 2023 | ₩65.3B | ₩700M | ₩1.9B | 1.0% | 6.2% | 99.9% |
| 2024 | ₩56.7B | -₩5B | -₩3.9B | −8.8% | −13.7% | 129.9% |
| 2025 | ₩50.8B | -₩7B | -₩8.9B | −13.9% | −25.9% | 80.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-30
Revenue declined for four consecutive years, from KRW 70.5 billion in 2022 to KRW 65.3 billion in 2023, KRW 56.7 billion in 2024, and KRW 50.8 billion in 2025.
Operating profit was modestly positive at KRW 2.4 billion in 2022 and KRW 0.65 billion in 2023, before swinging to losses of KRW 5.0 billion in 2024 and KRW 7.0 billion in 2025, while net loss attributable to owners widened from KRW 3.9 billion in 2024 to KRW 8.9 billion in 2025.
According to FnGuide data, consolidated revenue for fiscal 2025 fell 10.5% year on year, the operating loss widened 40.4%, and the net loss widened 130.3%, figures that align precisely with the company's disclosed numbers.
On a quarterly basis, the operating loss reached KRW 2.0 billion in Q3 2025 and KRW 2.3 billion in Q4 2025, with net losses of KRW 1.7 billion and KRW 3.0 billion respectively, showing a pronounced year-end deterioration.
In Q1 2026, despite a narrower operating loss of KRW 1.3 billion, the net loss widened to KRW 3.5 billion, suggesting one-off items possibly tied to the capital reduction and rights offering.
Q2 2026, however, brought revenue of KRW 14.5 billion alongside operating profit of roughly KRW 100 million and net profit of about KRW 30 million, marking the first joint profit in five quarters.
Operating cash flow remained negative from 2023 through 2025 (KRW -2.8 billion, KRW -6.0 billion, and KRW -3.4 billion, respectively), aside from a positive KRW 1.1 billion in 2022, indicating that cash generation has not yet fully recovered.
The debt ratio rose from 106.6% in 2022 to 129.9% in 2024 before falling to 80.4% in 2025 on the back of capital raising.
South Korea's domestic apparel industry tends to be sensitive to economic cycles, though rising income levels and entrenched brand preferences have softened that sensitivity, while at the same time competition for market share has intensified among companies with strong capital and brand power.
Rising online penetration and the spread of fast-fashion and overseas direct-purchase channels have structurally pressured smaller domestic brands. Hyungji I&C exemplifies this dynamic, having seen its revenue base shrink steadily, and it trails larger competitors in brand power and financial resources.
Similar pressure is visible at the group level: one media report noted that the Hyungji Fashion Group consists of 22 unlisted affiliates along with three listed companies — Hyungji I&C, Hyungji Global, and Hyungji Elite, all facing comparable financial strain.
Against this backdrop, Hyungji I&C is pursuing both domestic channel strengthening (Hyjin.com) and overseas expansion (China, Japan, Europe) as potential breakthroughs.
While its scale disadvantage versus larger rivals is clear, its emphasis on 'Asian-fit' design know-how as a differentiator in overseas markets is a notable element of its strategy.
The company plans to activate its overseas channels in sequence starting in the second half of 2026.
In China, it has designated Shanghai as its hub and signed memorandums of understanding with the Korea-China Enterprise Support Association and the state-backed Shanghai Xihongqiao Enterprise Service Co., and it plans to open an official brand account on the short-form video platform Douyin in the second half of the year and pursue mobile commerce in collaboration with key opinion leaders.
In Japan, it intends to lead with its womenswear brand Carries Note, tailoring products to Japanese consumer body types and supplying initial shipments from November through the home-shopping platform SHOP CHANNEL.
In Europe, it has forged a strategic partnership with Italian premium textile company Carvico to broaden cooperation on functional materials. Domestically, the company has set a 2026 e-commerce division revenue target of KRW 6 billion and is expanding direct sales through its VC division.
However, the company's most pressing task remains exiting managed-stock status; failure to satisfy the market-capitalization requirement could trigger delisting, making compliance with this requirement as important a variable as operational improvement over the coming months.
Hyungji I&C has posted net losses in most recent years, making conventional price-to-earnings comparisons of limited use.
On a price-to-book basis, the stock trades at a steep discount to net asset value, a pattern that likely reflects the combined effects of managed-stock designation, repeated capital actions (the capital reduction and rights offering) that altered the share count, and ongoing earnings uncertainty.
The company has not paid dividends in recent years, limiting the relevance of any yield-based comparison.
Profitability direction has been unstable — a modest profit in 2023 reverted to losses in 2024-2025 before turning positive again in Q2 2026 — and this volatility constrains how any valuation multiple should be read.
Investors may find it more useful to track whether managed-stock status is lifted and whether the recent quarterly profit trend persists, rather than focusing on absolute multiple levels.
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 2026-09-30
Q2 2026 revenue of KRW 14.5 billion came with an operating profit of roughly KRW 100 million and a net profit of about KRW 30 million, ending five consecutive quarters of losses.
Given that operating and net losses had been widening through the prior quarter, this marks a potential inflection point, and whether the trend continues into subsequent quarters is the key point to watch.
The company is simultaneously pursuing a Shanghai hub in China, entry into a Japanese home-shopping channel, and a partnership with an Italian materials company to reduce domestic dependence.
It points to brand-level data such as YEZAC's cumulative sales of 8.49 million units and Carries Note's 182% online sales growth as evidence supporting overseas expansion, though revenue contribution from these initiatives remains at an early stage.
Sales at the company's owned mall, Hyjin.com, grew 52% over the most recent year while visitor traffic rose 58%.
Based on this, the company established a dedicated VC division to expand direct sales and has set a 2026 e-commerce revenue target of KRW 6 billion, a shift that can be read as reducing reliance on external distribution channels.
After the market capitalization stayed below KRW 20 billion for more than 30 days, the company was designated a managed stock on August 4, 2026.
The biggest risk is that if the market-cap requirement is not met for 45 consecutive days within 90 days of designation, or if no other exemption condition is met, the stock could become subject to delisting. All three listed Hyungji Group affiliates face similar issues, underscoring a structural pattern.
Revenue declined for four straight years, from KRW 70.5 billion in 2022 to KRW 50.8 billion in 2025, and operating results posted losses in both 2024 and 2025. Quarterly volatility has been significant, with the net loss widening to KRW 3.5 billion in Q1 2026.
Whether the Q2 profit turnaround represents a sustained improvement or a short-term rebound remains unconfirmed.
In the first half of 2026, a 90% capital reduction was followed by a rights offering, significantly altering the share count and capital structure. According to related reporting, NICE Investors Service was followed by Korea Ratings in lowering the credit rating outlook to 'negative'.
Frequent capital actions combined with a deteriorating credit outlook could weigh on the terms of any future fundraising.
Whether the market-capitalization requirement for exiting managed-stock status is met is the top risk.
As things currently stand, if the market capitalization remains below KRW 20 billion for 10 consecutive days, it could constitute grounds for delisting, meaning market valuation is directly tied to continued listing status. Failure to meet this requirement would have a direct adverse impact on shareholder value.
The debt ratio rose to 129.9% in 2024 before falling to 80.4% in 2025 on capital raising, but operating cash flow has remained negative for multiple consecutive years. Any need for further rights offerings or borrowing could lead to dilution for existing shareholders or higher funding costs.
As domestic apparel consumption shifts toward online and fast-fashion channels, many small and mid-sized brands face share pressure. If overseas expansion underdelivers, the company could fail to offset declining domestic revenue.
Because all three listed group affiliates face similar financial pressure, the possibility of risk spillover at the group level cannot be ruled out.
This marks roughly the 90-day deadline following the August 4, 2026 managed-stock designation; whether the market capitalization has stayed above KRW 20 billion for 45 consecutive days within this window will determine whether delisting grounds apply.
The Q3 2026 quarterly report is due under the statutory filing deadline; it will be the next regular earnings disclosure to confirm whether the Q2 profit turnaround has continued.
Initial shipments of Carries Note through the Japanese home-shopping platform SHOP CHANNEL are scheduled, making this a point to confirm actual sales launch and early market response.
An official brand account on the Chinese short-form platform Douyin and collaboration with key opinion leaders are planned, warranting confirmation of whether the Chinese mobile commerce channel is actually activated.
Hyungji I&C has shown a signal of change with a joint operating and net profit turnaround in Q2 2026, even amid structural difficulties including four straight years of revenue decline and consecutive losses in 2024-2025.
At the same time, its designation as a managed stock due to insufficient market capitalization has made continued listing status as important a variable as earnings improvement.
The company has restructured its capital base through a capital reduction and a rights offering, and it is pursuing a rebound by simultaneously expanding overseas into China, Japan, and Europe while growing its online channel centered on the owned mall Hyjin.com.
However, the overseas business remains at an early stage with no visible revenue contribution yet, and operating cash flow has remained negative for multiple consecutive years.
The coming months will require watching whether the managed-stock exit requirement is met, whether the Q3 profit trend continues, and how the overseas channels actually perform. This report is prepared for informational purposes and does not include a buy or sell recommendation.
Report written 2026-10-01 · Data as of 2026-09-30
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