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
Amid a favorable backdrop of rebounding births and a growing kidswear market, Agabang & Company posted record annual revenue in 2025, yet its operating margin has declined for three straight years, and quarterly earnings volatility has become more pronounced through 2026.
2025 consolidated revenue reached a record KRW 189.08 billion, but operating profit fell to KRW 13.99 billion from KRW 15.21 billion, with operating margin declining from 8.3% to 7.4%
2026 second-quarter operating profit rose to KRW 7.19 billion and owner net profit to KRW 12.13 billion, the strongest quarter within the recent four-quarter window
Korea's kidswear market grew 9.1% year-on-year to KRW 2.0323 trillion, contrasting with declines in women's wear (-4.4%) and men's wear (-2.6%)
First-quarter 2026 births rose 14.8% year-on-year, the highest since Q1 2019, with the total fertility rate also rebounding
The largest shareholder is Lancy Korea, an affiliate of China's Lancy Group, holding roughly 26.5% as of end-2024, meaning Chinese capital retains structural influence over governance
Agabang & Company launched in 1979 as Korea's first specialized infant apparel and goods company and has led the market for decades as a KOSDAQ-listed firm.
Beyond its flagship Agabang brand, the company operates DEARBABY, ELLE, and ETTOI lines tailored to infants and toddlers, and has expanded into skincare and maternity wear. Revenue is concentrated in infant apparel and goods, distributed mainly through domestic stores and its own online mall.
The largest shareholder is Lancy Korea, the Korean subsidiary of China's Lancy Group, holding roughly 26.5% as of end-2024, meaning Chinese capital continues to shape the company's governance structure.
Domestically, competition has intensified as global brands expand kids lines, yet Agabang has sustained revenue growth by differentiating both value-priced and premium products.
Overseas, rising labor costs and infrastructure shortages in China weigh on profitability, though the company continues building presence in Shanghai and Beijing hubs, betting on growth potential tied to China's relaxed multi-child policies.
On the competitive front, the market boundary is expanding as adult fashion platforms and designer brands roll out kids lines, intensifying competition across department stores and online channels alike.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩44.5B | ₩4.9B | 11.0% |
| 2025Q3 | ₩43.6B | ₩2B | 4.6% |
| 2025Q4 | ₩56.6B | ₩5.7B | 10.1% |
| 2026Q1 | ₩48.5B | ₩2.1B | 4.4% |
| 2026Q2 | ₩50.4B | ₩7.2B | 14.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩174.3B | ₩14.5B | ₩10.4B | 8.3% | 6.4% | 28.3% |
| 2023 | ₩186.4B | ₩16.6B | ₩13.4B | 8.9% | 7.9% | 30.1% |
| 2024 | ₩182.7B | ₩15.2B | ₩11.2B | 8.3% | 6.7% | 33.5% |
| 2025 | ₩189.1B | ₩14B | ₩11.6B | 7.4% | 6.5% | 32.0% |
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
Consolidated revenue in 2025 reached KRW 189.08 billion, up 3.5% from KRW 182.74 billion in 2024, marking a record high.
However, operating profit fell to KRW 13.99 billion from KRW 15.21 billion, with operating margin declining from 8.3% to 7.4%, extending a three-year margin decline from 8.9% in 2023 to 8.3% in 2024 and 7.4% in 2025.
Meanwhile, owner net profit edged up to KRW 11.55 billion from KRW 11.16 billion, showing an improvement despite the operating profit decline.
On a quarterly basis, third-quarter 2025 operating profit was just KRW 2.02 billion, reflecting a clear off-season pattern, while fourth-quarter 2025 revenue of KRW 56.62 billion and operating profit of KRW 5.72 billion confirmed a seasonal peak effect.
First-quarter 2026 weakened again to revenue of KRW 48.47 billion and operating profit of KRW 2.14 billion, though net profit of KRW 2.56 billion exceeded operating profit, suggesting non-operating factors supported results.
Second-quarter 2026 showed a clear recovery with revenue of KRW 50.40 billion and operating profit of KRW 7.19 billion, while owner net profit reached KRW 12.13 billion, the largest quarterly profit within the recent four-quarter window.
On cash generation, operating cash flow remained positive every year from 2022 through 2025, and the debt ratio has stayed stable in the 28-34% range.
Korea's kidswear market continues to grow despite the low birth rate backdrop.
According to a survey by the Korea Federation of Textile Industries, the domestic kidswear market reached approximately KRW 2.0323 trillion from March 2025 to February 2026, up 9.1% year-on-year, in contrast to declines in women's wear (-4.4%) and men's wear (-2.6%) over the same period.
This growth is attributed to the 'ten pocket' and 'gold kids' phenomenon, where spending concentrates on a single child; indeed, infant and toddler sales at Korea's three major department stores rose more than 20% year-on-year in the first half of this year. Adding to this is a rebound in births.
According to Statistics Korea's national data agency, first-quarter 2026 births totaled 75,013, up 14.8% year-on-year and the highest since Q1 2019, while April births rose 18% year-on-year, the highest in seven years since April 2019.
The National Assembly Budget Office projects the total fertility rate to rise to around 0.9 in 2026 after bottoming at 0.72 in 2023.
On the competitive front, fashion platforms such as 29CM and W Concept have launched dedicated kids sections, and adult designer brands are increasingly rolling out kids lines, intensifying competition particularly in the premium segment.
Agabang & Company, as a traditional leader backed by offline distribution and brand recognition, is responding to this expanding market with a dual strategy spanning both value and premium products.
The company has not disclosed specific quantitative guidance, but the confirmed industry indicators generally point in a favorable direction.
Births have continued rising for an extended period since July 2024, and the kidswear market itself is showing growth distinct from other apparel categories, driven by the spread of ten-pocket consumption.
Domestically, the company appears to be continuing a strategy of strengthening both value-priced and premium products in response to value-based consumption trends, alongside continued expansion of online channels.
In its overseas business, rising labor costs and infrastructure constraints in China remain a burden, but the company continues to build presence in key commercial districts such as Shanghai and Beijing, which could link to policy-driven growth expectations in China's infant and toddler market.
On the earnings front, a clear seasonal pattern has emerged, alternating between off-season quarters such as third-quarter 2025 and first-quarter 2026 and peak-season quarters such as fourth-quarter 2025 and second-quarter 2026, making it worth watching whether this pattern continues in upcoming quarters.
In the second half of 2026, a key point to watch will be year-end peak-season sales alongside how quickly the birth rate rebound translates into actual purchasing.
The current trading multiple appears closer to the lower end than the upper end of the company's historical trading range, and shares also trade at a discount to net asset value.
This can be interpreted partly as a reflection of the 2025 operating margin decline and quarterly earnings volatility, though quarters with sharply improved profit, such as the second quarter of 2026, have also appeared, suggesting a mixed market assessment.
The company currently pays no cash dividend, suggesting its priority leans toward maintaining financial stability rather than shareholder returns through dividends.
Shareholders' equity has grown steadily from KRW 162.4 billion in 2022 to KRW 178.6 billion in 2025, and the debt ratio has remained stable around 30%, showing no clear concerns on the financial soundness front.
However, if the pace of operating profit recovery and quarterly volatility persist, this could continue to influence the multiple the market assigns.
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
First-quarter 2026 births rose 14.8% year-on-year and April births rose 18%, showing a rebound from a multi-year decline. Combined with the ten-pocket and gold-kids consumption trend concentrating spending on a single child, the kidswear market continues to grow unlike women's and men's apparel.
This structural trend could favor the revenue base of a traditional infant goods specialist like Agabang & Company.
Second-quarter 2026 operating profit reached KRW 7.19 billion and owner net profit KRW 12.13 billion, the largest figures within the recent four-quarter window. This marks a clear improvement from the weak first quarter, reaffirming the seasonal peak pattern seen in annual results.
Operating cash flow remained positive every year from 2022 to 2025, and the debt ratio has stayed stable in the 28-34% range. Shareholders' equity has also grown steadily from KRW 162.4 billion in 2022 to KRW 178.6 billion in 2025, maintaining financial soundness.
Operating margin declined for three straight years, from 8.9% in 2023 to 8.3% in 2024 to 7.4% in 2025. Despite revenue growth, rising cost and expense burdens have delayed profitability improvement. Whether this margin decline trend continues remains a key point to watch.
Operating profit was as low as KRW 2.02 billion in third-quarter 2025 and KRW 2.14 billion in first-quarter 2026, clear off-season quarters, while fourth-quarter 2025 and second-quarter 2026 posted strong peaks of KRW 5.72 billion and KRW 7.19 billion respectively. This wide variance makes quarterly earnings forecasting more difficult.
Rising labor costs and infrastructure shortages in China continue to make it difficult to secure profitability in overseas operations.
At the same time, competition in the premium segment is intensifying domestically as adult fashion platforms and designer brands enter the kids line, raising the possibility that revenue expansion does not directly translate into profit improvement.
The largest shareholder is Lancy Korea, an affiliate of China's Lancy Group, holding roughly 26.5% as of end-2024. This governance structure means continued exposure to Chinese capital influence, and potential vulnerability to shifts in Korea-China relations or policy risk.
Given past instances where restrictions on Chinese operations during geopolitical tensions weighed on results, similar geopolitical variables recurring could affect the overseas business.
While births and the total fertility rate have recently rebounded, absolute levels remain well below the population replacement line. The National Assembly Budget Office's 2026 total fertility rate projection stands at around 0.9, indicating the long-term demographic vulnerability has not been resolved.
The pace of industry recovery could vary depending on the continuity and intensity of government childbirth policies.
In both the first and second quarters of 2026, net profit substantially exceeded operating profit, suggesting non-operating factors influenced results.
If this pattern repeats, it may become harder to gauge the company's earnings trend from core operations alone, requiring investors to check the cause of the gap between operating profit and net profit each quarter.
Check whether the birth rate increase continues via the national data agency's September population trend release
Third-quarter 2026 preliminary earnings disclosure is expected. Key focus is whether the seasonally weaker Q3 pattern of the prior year repeats, or whether the second-quarter improvement continues
Monitor year-end peak-season revenue and margin trends, and whether a similar peak-season effect to last year's Q4 (revenue of KRW 56.62 billion, operating profit of KRW 5.72 billion) recurs
Check via follow-up fashion consumption surveys from the Korea Federation of Textile Industries whether the 9.1% kidswear market growth and ten-pocket spending trend remain sustained
Continue monitoring for any disclosures related to changes in Lancy Korea's stake or expansion of China business tied to China's Lancy Group
Agabang & Company posted record 2025 revenue amid a favorable backdrop of rebounding births and a standalone growth story in the kidswear market, yet operating margin has declined for three consecutive years, a contrasting trend.
In 2026, quarterly volatility widened, with a weak first quarter followed by a clear improvement in the second quarter. Cash generation and financial structure have remained stable, but the recurring pattern of net profit substantially exceeding operating profit warrants a closer look at earnings quality.
Structural variables persist, including the governance characteristic of a China-based Lancy Group affiliate as the largest shareholder, and a long-term demographic structure that remains fragile despite the recent rebound.
Key factors for future assessment will be how long the kidswear market growth and ten-pocket consumption trend persist, and what pattern quarterly seasonality follows in the upcoming third and fourth quarters.
Report written 2026-09-05 · Data as of 2026-09-04
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