PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩90 per share · Prices as of the 2026-10-02 close
Zinus turned its full-year 2025 operating profit positive on one-off items such as an anti-dumping litigation refund, but has since posted four consecutive quarterly operating losses from Q3 2025 through Q2 2026 as US tariff-driven price hikes weighed on demand.
Full-year 2025 operating profit turned positive at KRW 25.48 billion (2.8% margin), but net income attributable to owners remained negative at KRW -18.5 billion.
Operating losses continued for four straight quarters from Q3 2025 (KRW -7.6 billion) to Q2 2026 (KRW -26.7 billion), with the widest loss recorded in Q1 2026 (KRW -30.1 billion).
Following tariff-related price hikes, orders from key channels softened and Indonesian plant utilization fell to 65.7%.
The company has targeted raising Cambodia plant utilization to 80-90% by the end of H1 2026 and reflecting new ODM revenue starting in H2 2026.
Heungkuk Securities lowered its target price to KRW 11,000 in an August 2026 report while maintaining its buy rating.
Zinus is a bedding and furniture manufacturer centered on vacuum-compressed memory foam mattresses, extending into non-mattress items such as bed frames and sofas. Its primary sales channels are Amazon and Walmart in the United States, alongside its own online store and ODM/OEM supply.
The company was acquired by Hyundai Department Store Group in 2022, in a deal reported at roughly KRW 879 billion. Production is diversified across Indonesia and China plus a newly operating Cambodia plant, while the long underutilized Georgia, US plant has halted production.
In the Korean domestic market, Zinus moved to a fully direct-operation structure starting January 2025 to improve logistics efficiency. Its product competitiveness stems from R&D incorporating more than 2.81 million pieces of consumer feedback and vertically integrated quality and cost control across its value chain.
The company has recently expanded its lineup beyond mattresses into sofas and other categories, and is also pursuing Middle East expansion that began with UAE sales in June 2025.
Its competitive landscape mixes US-based brands and low-cost Chinese mattress makers, with tariff and logistics response capability serving as a key differentiator.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩229.5B | ₩29.1B | 12.7% |
| 2025Q3 | ₩241.7B | -₩7.6B | −3.2% |
| 2025Q4 | ₩192B | -₩23.5B | −12.2% |
| 2026Q1 | ₩139.6B | -₩30.1B | −21.6% |
| 2026Q2 | ₩147.5B | -₩26.7B | −18.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.2T | ₩65.6B | ₩29.4B | 5.7% | 4.7% | 78.0% |
| 2023 | ₩952.3B | ₩18.3B | ₩5.3B | 1.9% | 0.8% | 66.4% |
| 2024 | ₩920.4B | -₩5.4B | -₩6.8B | −0.6% | −1.0% | 77.2% |
| 2025 | ₩913.2B | ₩25.5B | -₩18.5B | 2.8% | −2.8% | 65.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Full-year 2025 revenue came in at KRW 913.18 billion, down slightly from KRW 920.40 billion a year earlier, while operating profit swung to KRW 25.48 billion (2.8% margin) from an operating loss of KRW -5.45 billion in 2024.
Net income attributable to owners, however, remained negative at KRW -18.51 billion, as the anti-dumping litigation refund benefit booked in the first half was offset by a sharp demand pullback in the second half.
Indeed, Q2 2025 operating profit was strong at KRW 29.11 billion (net income KRW 7.57 billion), but operating losses then persisted for four consecutive quarters: Q3 2025 (KRW -7.63 billion), Q4 2025 (KRW -23.50 billion), Q1 2026 (KRW -30.09 billion), and Q2 2026 (KRW -26.70 billion).
In Q4, one-off SG&A items tied to severance from the Georgia plant shutdown and warehouse efficiency work were recognized, while in Q1 and Q2 2026 revenue fell to KRW 139.56 billion and KRW 147.54 billion, respectively, as major customers turned more conservative in ordering after tariff-related price increases.
Net income also stayed negative over the same period at KRW -22.82 billion and KRW -22.06 billion.
Looking back, 2023 and 2022 revenue stood at KRW 952.28 billion and KRW 1.1596 trillion with operating margins of 1.9% and 5.7%, respectively, showing that both revenue scale and margins have contracted for four straight years since peaking around the time of the 2022 acquisition.
The debt ratio improved to 65.3% at end-2025 from 77.2% at end-2024, and operating cash flow remained a net inflow of KRW 216.71 billion in 2025.
The US mattress market is in a phase where changes in tariff policy and softer consumer spending are combining to intensify price competition. A large share of Zinus's mattress volume—82.1%—originates from Indonesia, leaving the company highly exposed to shifts in tariff policy.
US authorities reportedly settled Indonesian import tariffs at 19%, lower than the initially flagged 32%. Even so, Heungkuk Securities assessed in an August 2026 report that Zinus faces intensifying price competition against rivals in the US market.
Given that mattress replacement cycles are commonly cited as five to eight years, some analysis points to an approaching replacement wave from purchases made around 2020.
Competitors include US-based local brands and low-cost Chinese online mattress sellers, with trade measures such as anti-dumping tariffs shaping the competitive landscape. The company has also launched small-box products as a parallel response to reduce anti-dumping tariff exposure.
The company has set a target of raising Cambodia plant utilization to 80-90% by the end of H1 2026, up from 48.6% in Q4 2025, following its stated ramp-up schedule. Contracts with a new ODM customer are slated to have terms finalized during H1 2026, with revenue contribution planned to begin in H2 2026.
Heungkuk Securities reported in its August 2026 note that restructuring of production sites and sales subsidiaries expanded since 2015 is planned to be completed no later than H1 2027. Cost savings from the Georgia, US plant shutdown are expected to be reflected progressively in results starting in 2026.
Management has stated that the non-mattress segment is expanding sales through US offline retail channels, with revenue realization expected in the second half.
The Korean domestic business continues to expand sales leveraging Hyundai Department Store Group's distribution network following full direct-operation since January 2025. In the Middle East, the company has laid out a mid- to long-term plan to expand from its UAE launch in June 2025 to 29 countries over time.
Zinus shares trade at a substantial discount to net asset value, with the price remaining below book value per share.
With operating losses persisting for four straight quarters, earnings-based valuation metrics are difficult to compute, and future earnings estimates may be revised depending on second-half restructuring progress and order recovery.
The dividend policy has been maintained at the same per-share level as the prior year despite the net loss, continuing the shareholder-return stance. Heungkuk Securities lowered its target price to KRW 11,000 in an August 2026 report while keeping a buy rating, citing potential second-half earnings improvement.
Given that this stock's trading multiples have swung widely between profitable and loss-making periods historically, future valuation assessments are likely to hinge on actual outcomes for Cambodia plant utilization and tariff-related pricing measures.
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 2026-08-21
Zinus is working to reduce its reliance on Indonesia by ramping up its new Cambodia plant, while also launching small-box products to lower anti-dumping tariff exposure. The US government's settlement of Indonesian tariffs at 19%, lower than initially flagged, is also a relatively favorable condition.
With production spread across multiple countries, the company has some buffer against country-specific trade risk.
Cost savings from the Georgia, US plant shutdown are set to be reflected progressively in results from 2026. New ODM revenue is planned to contribute starting in H2 2026, offering potential for expanding the revenue base.
If Cambodia plant utilization rises from 48.6% in Q4 2025 toward the 80-90% target, fixed-cost burden could ease.
The company decided to maintain the same per-share dividend level as the prior year despite the net loss. It also took shareholder-value measures such as retiring all treasury shares held. Management has signaled it will not retreat from its shareholder-return stance despite the difficult operating environment.
Operating losses ran from KRW -7.63 billion to KRW -23.50 billion, KRW -30.09 billion, and KRW -26.70 billion from Q3 2025 through Q2 2026. Even after the deepest loss in Q1 2026, a clear turn to improvement had not yet materialized. The demand pullback following tariff-related price hikes appears to be lasting longer than initially expected.
Revenue declined for four straight years, from KRW 1.1596 trillion in 2022 to KRW 952.28 billion in 2023, KRW 920.40 billion in 2024, and KRW 913.18 billion in 2025. After peaking around the time of the 2022 acquisition, both scale and operating margin (5.7% to 1.9% to -0.6% to 2.8%) have fluctuated together. H1 2026 revenue also remained well below the year-earlier level.
Heungkuk Securities assessed in its August 2026 report that Zinus faces intensifying price competition from rivals in the US market. Indonesian plant utilization fell to 65.7% in Q4 2025, increasing the burden of covering fixed costs. It also remains unconfirmed whether consumer resistance to tariff-related price increases has fully subsided.
With 82.1% of mattress volume sourced from Indonesia, the company has high exposure to changes in tariff policy toward a single country. Although the US tariff rate was settled at 19%, further changes cannot be ruled out depending on future trade negotiation outcomes. The demand impact of tariff-related price increases has not yet fully subsided.
Zinus's revenue is heavily dependent on a small number of large retail channels such as Amazon and Walmart. Changes in ordering policy from major customers directly affect results. If securing new ODM customers does not proceed as planned, diversification of the revenue base could be delayed.
If Cambodia plant utilization takes longer than planned to reach the 80-90% target, easing of the fixed-cost burden could be delayed. Restructuring of production sites and sales subsidiaries is targeted for completion by H1 2027, leaving uncertainty around the execution timeline.
The finalization of new ODM contract terms and the actual timing of revenue contribution also remain unconfirmed.
Check whether the four-quarter streak of operating losses shows signs of easing and whether Cambodia plant utilization is approaching its target level.
Monitor whether detailed terms with the new ODM customer are finalized and when actual revenue contribution begins.
Verify whether the production and sales subsidiary restructuring completion target cited by Heungkuk Securities in its August 2026 report is actually achieved.
Continue to watch for any further changes in US tariff policy toward Indonesian-made products and whether consumer resistance to tariff-related price hikes eases.
Zinus turned its full-year 2025 operating profit positive on one-off items such as an anti-dumping litigation refund, but has yet to show a clear sign of core-business recovery, having posted four consecutive quarterly operating losses from Q3 2025 through Q2 2026.
Revenue has contracted for four straight years since peaking around the time of the 2022 acquisition, compounded by declining Indonesian plant utilization and intensifying US price competition.
On the other hand, restructuring levers—Cambodia plant ramp-up, new ODM contracts, and cost savings from the Georgia plant shutdown—are slated to be reflected in results from H2 2026 onward.
On the tariff front, the settlement of US tariffs on Indonesian-made goods at 19%, lower than initially proposed, is a relatively favorable condition. The company has signaled its intent to rebuild trust by maintaining its dividend and treasury share retirement policies despite the net loss.
Key points to watch going forward are the actual pace of improvement in Cambodia plant utilization, the timing of new ODM revenue contribution, and whether the restructuring completion schedule is met.
Report written 2026-09-05 · Data as of 2026-09-04
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