KOSPIApparel & Living069640

Hansaemk

₩1,420▼ 2.54%2026-10-02 close

Market Cap

₩30.4B

Turnover

₩40,956,248

Volume

30,000 shares

Shares out.

21.7M

PER

—

PBR

—

EPS

-₩916

Dividend Yield

0.00%

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

Report overview

Signs of Earnings Recovery Amid Listing-Maintenance Risk

Hansae MK returned to operating profit on a continuing-operations basis in the first quarter of 2026 through brand portfolio streamlining, but deepening capital impairment and tightened penny-stock delisting rules keep financial soundness concerns firmly in place.

1
2025 annual revenue came to KRW 248.9 billion with an operating loss of KRW 12.1 billion, narrower than the prior year's KRW 21.6 billion loss, yet the net loss widened to KRW 37.9 billion.
2
Operating profit on a continuing-operations basis turned positive at KRW 0.37 billion in the first quarter of 2026, but the company slipped back into an operating loss of KRW 0.73 billion in the second quarter, leaving the durability of the turnaround unconfirmed.
3
Total equity shrank to KRW 18.8 billion at end-2025 while the debt ratio surged to 1,403.7% from 483.7% a year earlier, underscoring a marked deterioration in the balance sheet.
4
The company carried out a 2-for-1 reverse stock split in April 2026 in response to tightened KOSPI penny-stock and market-cap delisting rules, and members of the founding family separately purchased shares on the open market.
5
Sports-focused kids brands such Nike Kids, operated through the PLAYKIZ-PRO multi-brand format, posted strong growth, offering partial evidence that the brand portfolio streamlining strategy is bearing fruit.

Business structure

Hansae MK is a branded fashion company built around two pillars, adult casualwear and kids apparel, with NBA, an authentically licensed brand from the National Basketball Association, and its kids extension NBA KIDS serving as the core lineup.

The adult casual segment includes the premium vintage casual brand BUCKAROO, while the kids segment includes the Scandinavian-inspired babywear brand moimoln.

In kids sportswear, the company operates PLAYKIZ-PRO, the only multi-brand kids sports store of its kind in Korea, curating global brands including Nike Kids, Jordan Kids, Converse Kids, Levi's Kids, and Lacoste Kids. The company also holds an exclusive Asian license for PGA Tour and LPGA golfwear.

According to one data aggregator snapshot dated July 22, 2026, revenue composition was estimated at roughly 48.75% for kids apparel products, 31.24% for adult apparel products, a combined 18.65% for Chinese subsidiaries (Mankun and Gaesu), and 2.10% for the Japan subsidiary, though this figure should be treated as a reference snapshot rather than an audited segment disclosure.

Primary distribution channels include department store shop-in-shops, standalone brand stores, and the company's own online mall Style24.

The competitive landscape overlaps with large casual and licensed-brand players such as E-Land World, LF, and Shinsung Tongsang, and the company has itself been characterized as having one of the lowest operating margins among peers.

More recently, the company has pursued selective focus by discontinuing production of the Curly Suedit brand and liquidating BUCKAROO's US subsidiary after seventeen years.

Earnings trend

Quarterly revenue · Operating profit

₩60.8B-₩7.2B25Q2₩50.9B-₩4.8B25Q3₩75.6B₩8B25Q4₩66B₩400M26Q1₩61.3B-₩700M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩271.5B-₩21.1B2022₩316.8B-₩4.2B2023₩256.3B-₩21.6B2024₩248.9B-₩12.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩60.8B	-₩7.2B	−11.9%
2025Q3	₩50.9B	-₩4.8B	−9.5%
2025Q4	₩75.6B	₩8B	10.6%
2026Q1	₩66B	₩400M	0.6%
2026Q2	₩61.3B	-₩700M	−1.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩271.5B	-₩21.1B	-₩37.8B	−7.8%	−97.7%	482.0%
2023	₩316.8B	-₩4.2B	-₩6.4B	−1.3%	−7.3%	205.8%
2024	₩256.3B	-₩21.6B	-₩39.3B	−8.4%	−85.4%	483.7%
2025	₩248.9B	-₩12.1B	-₩37.9B	−4.9%	−202.0%	1403.7%

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

On an annual basis, revenue peaked at KRW 316.8 billion in 2023 after rising from KRW 271.5 billion in 2022, then declined for two consecutive years to KRW 256.3 billion in 2024 and KRW 248.9 billion in 2025.

Operating losses swung considerably, narrowing from KRW 21.1 billion in 2022 to KRW 4.2 billion in 2023, widening again to KRW 21.6 billion in 2024, and narrowing to KRW 12.1 billion in 2025.

Net losses attributable to owners were consistently larger than operating losses across all four years (KRW 37.8 billion in 2022, KRW 6.4 billion in 2023, KRW 39.3 billion in 2024, and KRW 37.9 billion in 2025), suggesting substantial non-operating charges, likely including asset impairments and inventory valuation losses, each year.

Quarterly, revenue was KRW 50.9 billion with an operating loss of KRW 4.8 billion in the third quarter of 2025, then jumped to KRW 75.6 billion in the fourth quarter with an operating profit of KRW 8.0 billion, yet the net loss widened to KRW 8.2 billion, pointing to significant non-operating drag.

In the first quarter of 2026, revenue reached KRW 66.0 billion with an operating profit of KRW 0.37 billion, and the net loss narrowed sharply to KRW 1.4 billion, but the second quarter saw revenue of KRW 61.3 billion and a return to an operating loss of KRW 0.73 billion, with the net loss widening again to KRW 3.1 billion.

Combined owner net loss over the trailing four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 19.3 billion, indicating the company has not escaped a structurally large loss position even after annualizing recent trends.

Operating cash flow has also deteriorated, with outflows widening from KRW 5.2 billion in 2022 to KRW 21.1 billion in 2024 and KRW 28.0 billion in 2025, signaling weakening cash generation.

Total equity rose to KRW 87.8 billion in 2023 before collapsing to KRW 46.0 billion in 2024 and KRW 18.8 billion in 2025, while the debt ratio spiked from 205.8% in 2023 to 1,403.7% in 2025, showing that balance sheet deterioration has outpaced the underlying earnings weakness.

Industry analysis

The domestic casual and kids apparel market faces a structural contraction in demand due to Korea's low birth rate, even as consumer spending shifts toward premium segments such as sports and performance kidswear.

The strong growth of sports-licensed brands operated by Hansae MK, including Nike Kids and Jordan Kids, appears to reflect this shift in consumption patterns. In contrast, the adult casualwear market remains stagnant amid competition from online and resale platforms and brand proliferation.

Large rival fashion companies such as E-Land World, LF, and Shinsung Tongsang are also strengthening their kids and licensed-brand portfolios, intensifying positioning competition.

Market data cited by Thinkpool shows Hansae MK's operating margin ranking among the lowest relative to peers, reflecting the absence of brand-level economies of scale and a heavy fixed-cost burden.

In terms of the industry cycle, the company is in a restructuring phase, trimming non-core brands and lowering fixed costs through AI-based content production even as broader consumer spending softens, which could mean the company enters any industry-wide recovery later than peers.

Outlook

The company has stated it will continue a core-brand-centered strategy and profitability-focused business restructuring, planning to further expand AI-based content production and digital operating systems across its marketing functions to sustain cost efficiencies.

It has already disclosed that shifting lookbook, social media, and campaign visual production to AI across brands such as BUCKAROO, NBA/NBA KIDS, and moimoln generated annual cost savings ranging from tens of millions to roughly KRW 100 million per brand.

The number of standalone PLAYKIZ-PRO stores, which include Nike Kids, expanded from 18 to 31 year-on-year as of the first quarter of 2026, and whether this channel's growth continues will be a key point to watch in coming quarters.

The NBA flagship store in Seongsu, which opened in April 2025, marked its first anniversary with brand-experience events, reinforcing its role as an experiential retail hub.

However, the company has maintained that it is difficult to comment on specific plans or timelines regarding delisting requirements, meaning a concrete roadmap for balance sheet repair has not yet been presented to the market.

Workforce restructuring in 2026, including reduced new hiring and increased voluntary resignations, is ongoing and could further feed into fixed-cost savings in the second half of the year.

Valuation

PER

—

PBR

—

ROE

-106.3%

EPS

-₩916

BPS

—

Dividend per share

₩0

The company's shares have gone through a prolonged decline since listing, and the stock is now in an unusual phase where tightened KOSPI penny-stock and market-capitalization delisting requirements directly intrude on valuation discussions.

The price-to-book ratio trades at a certain premium to net assets, which should be read in the context of a sharply reduced equity base that has compressed book value per share, rather than as a straightforward re-rating signal.

Dividends have remained suspended since the company swung to losses in 2019, so dividend-related metrics carry limited meaning for the current period.

On the earnings side, the company has not escaped a net-loss structure on an annual basis, though the narrower 2025 operating loss versus the prior year and the confirmed shift to operating profit on a continuing-operations basis in the first quarter of 2026 are notable directional developments.

That said, the return to an operating loss in the second quarter suggests it is premature to conclude that earnings recovery has become stable, and the market appears to be reacting more to listing-maintenance compliance than to conventional valuation metrics at this stage.

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

Evidence of Core-Brand Efficiency Gains

The number of standalone PLAYKIZ-PRO stores centered on Nike Kids grew from 18 to 31 within a year alongside strong sales growth, offering early evidence that the company's focus-and-select strategy is taking hold.

Restructuring has proceeded in parallel, including discontinuing the non-core Curly Suedit brand and liquidating BUCKAROO's US subsidiary, reallocating resources toward core channels. The shift to AI-based content production has also cut tens of millions of won in annual marketing costs per brand.

Continuing-Operations Profit in Q1 2026

First-quarter 2026 revenue grew 9.9% year-on-year and operating profit on a continuing-operations basis turned positive, providing numerical confirmation of restructuring efforts undertaken since the second half of 2025.

The net loss also narrowed considerably versus the prior quarter, indicating a clear directional improvement. The annual operating loss trend has also continued to narrow, from KRW 21.6 billion in 2024 to KRW 12.1 billion in 2025.

Direct Founding-Family Involvement

As delisting concerns intensified, the founding family, including the founder and the CEO's mother, disclosed plans for roughly KRW 600 million in combined open-market share purchases, signaling commitment to improving management.

The company also proactively addressed penny-stock requirements through a 2-for-1 reverse stock split. The vertically integrated structure combining sibling-led management responsibility with Hansae Textile's production infrastructure is viewed as a strategic group-level asset.

Bear factors

Deepening Capital Erosion and Surging Debt Ratio

Total equity shrank to KRW 18.8 billion at end-2025, pushing the capital impairment ratio into double digits, while the debt ratio surged to 1,403.7% from 483.7% a year earlier, nearly tripling.

Equity has collapsed to roughly one-fifth of its 2023 level of KRW 87.8 billion within two years, indicating an unusually rapid pace of balance sheet deterioration. While the company has not reached full capital impairment, continued losses could raise the risk of being designated an administrative issue.

Questions Over the Durability of the Turnaround

While the company turned profitable on a continuing-operations basis in the first quarter of 2026, it swung back to an operating loss of KRW 0.73 billion in the very next quarter, showing that earnings recovery has not been sustained consistently.

Even in the fourth quarter of 2025, when operating profit was positive, the net loss widened, illustrating a recurring gap between operating and net results. This high degree of quarterly volatility constrains confidence in the underlying stability of the business.

Persistent Listing-Maintenance Regulatory Risk

Under KOSPI penny-stock rules, a stock trading below KRW 1,000 for 30 consecutive trading days is designated an administrative issue, and if it fails to recover to KRW 1,000 or above for 45 trading days within the following 90 trading days, it faces final delisting.

The market-capitalization threshold is also being phased in more strictly, rising to KRW 30 billion by July 2026 and KRW 50 billion by January 2027. Even after the reverse stock split, renewed price weakness could repeatedly bring this regulatory risk back into focus.

Risk factors

Listing-Maintenance and Regulatory Risk

Under the Financial Services Commission's delisting reform plan, penny-stock and market-cap thresholds are being tightened in stages, meaning repeated risk of administrative-issue designation or trading halts if the share price or market cap hovers near regulatory thresholds.

Even after the 2-for-1 reverse stock split, this regulatory risk remains latent unless fundamental earnings improvement follows. This is distinct from ordinary operating risk in that it affects the very tradability of the shares.

Balance Sheet and Cash Flow Risk

Operating cash flow has posted net outflows for four consecutive years, with the scale of outflows widening each year. Amid a rapidly shrinking equity base, additional losses could not be ruled out from eventually leading to full capital impairment.

If external financing or a rights offering becomes necessary to shore up capital, existing shareholder value could face dilution risk.

Industry and Competitive Risk

Korea's low birth rate is structurally shrinking the demand base for kids apparel, while the adult casualwear market also faces stagnant growth amid intensifying competition from online and resale platforms.

Many of the company's brands, including NBA and Nike Kids, are based on licensing agreements, so changes in contract terms or failure to renew licenses could affect business stability.

The company's operating margin, which lags peers, has been cited as a structural weakness stemming from slower progress toward economies of scale.

What to watch next

Mid-November 2026
This marks the third-quarter 2026 earnings disclosure; given the swing from a Q1 profit to a Q2 loss, whether continuing-operations results return to profit in Q3 will be a key point to watch.
During the fourth quarter of 2026
Since the fourth quarter of 2025 was the year's largest revenue quarter, it is worth checking whether winter-season and back-to-school momentum for the NBA and NBA KIDS product lines is repeated.
January 2027
This is when the KOSPI market-capitalization delisting threshold rises to KRW 50 billion, making whether the company's market cap meets that bar by then a critical variable for continued listing.
Around March 2027
This is when the audit report and annual business report for fiscal year 2026 are due, and it will be important to check changes in the capital impairment ratio, whether full capital impairment has occurred, and the audit opinion.

Overall view

Hansae MK achieved an operating profit on a continuing-operations basis in the first quarter of 2026 through brand portfolio streamlining and AI-driven cost cuts, but it swung back to an operating loss in the very next quarter, meaning the consistency of the earnings recovery has not yet been demonstrated.

On an annual basis, the 2025 operating loss narrowed from the prior year, yet the net loss actually widened, and a sharp decline in total equity combined with a spike in the debt ratio shows that balance sheet deterioration is outpacing earnings improvement.

Layered on top of this is the institutional variable of tightened KOSPI penny-stock and market-capitalization delisting requirements, putting the stock in a phase where it reacts more sensitively to listing-maintenance compliance than to conventional valuation logic.

The strong growth of sports-focused kids brands such as Nike Kids and open-market purchases by the founding family stand out as positive signals, but deepening capital impairment and quarter-to-quarter earnings volatility remain unresolved weaknesses.

Variables to be confirmed sequentially going forward include third-quarter results, year-end seasonal sales, whether the market-capitalization requirement is met, and the capital impairment status disclosed in the audit report.

This report is prepared for informational purposes only and does not include a buy or sell recommendation or a target price.

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.