KOSPIApparel & Living093240

Hyungji Elite

₩296 0.00%2026-10-02 close

Market Cap

₩18.2B

Turnover

₩0

Volume

0 shares

Shares out.

61.4M

PER

—

PBR

—

EPS

—

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q1–2025Q4) · Prices as of the 2026-10-02 close

Report overview

Earnings Rebound Amid Balance-Sheet Strain

Hyungji Elite has expanded through sports merchandising and overseas school-uniform business, but its most recent fiscal year (2025) posted a net loss due to a one-off item, while group-level debt remains a persistent challenge.

1
FY2025 annual revenue rose to KRW166.6 billion year-on-year, but net income attributable to owners swung to a loss of KRW1.29 billion.
2
A sharp Q3 2025 operating loss of KRW7.04 billion and net loss of KRW8.12 billion were the main drag on full-year results.
3
The company is broadening its portfolio from school uniforms into sports merchandising, workwear, and overseas markets including China and Japan.
4
A KRW21.3 billion rights offering decided in November 2025 led to new shares listing in February 2026, significantly increasing share count.
5
The wider Fashion Group Hyungji conglomerate carries a high debt ratio, and property-sale-based balance-sheet repair efforts are underway.

Business structure

Hyungji Elite, a Fashion Group Hyungji affiliate, centers its business on the 'Elite' school-uniform brand alongside corporate/group uniforms and sports merchandising. Its uniform segment has expanded beyond gym wear and casual wear into T-shirts, bags, belts, and indoor shoes while revamping its brand identity.

The sports merchandising business has widened from professional baseball, football, and e-sports into professional basketball, including a sponsorship with Busan KCC Egis. Its workwear line was relaunched as 'Willbe Lab,' serving both B2B and B2C channels.

Overseas, the company entered China's premium school-uniform market and became the first Korean uniform maker to enter Japan, supplying uniforms to Kyoto International School and Osaka Kongo School.

In China it operates a joint venture, 'Shanghai Elite,' with local group-uniform firm Bono to build out its B2B supply network. More recently it has moved into wearable robotics through subsidiary Hyungji Robotics.

Competitively, the strategy centers on increasing the weight of non-uniform businesses as the domestic uniform market faces structural stagnation from a declining school-age population.

Earnings trend

Quarterly revenue · Operating profit

₩36.3B₩4.9B24Q4₩44.6B₩7.5B25Q1₩43.5B-₩200M25Q2₩21.1B-₩7B25Q3₩57.5B₩6.4B25Q4

RevenueOperating profit

Annual revenue · Operating profit

₩137.3B₩3.9B2022₩94.5B₩2.5B2023₩132.7B₩7B2024₩166.7B₩6.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2024Q4	₩36.3B	₩4.9B	13.6%
2025Q1	₩44.6B	₩7.5B	16.7%
2025Q2	₩43.5B	-₩200M	−0.4%
2025Q3	₩21.1B	-₩7B	−33.4%
2025Q4	₩57.5B	₩6.4B	11.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩137.3B	₩3.9B	₩8.1B	2.9%	11.9%	61.2%
2023	₩94.5B	₩2.5B	₩2B	2.6%	2.9%	78.9%
2024	₩132.7B	₩7B	₩6.4B	5.3%	8.4%	89.8%
2025	₩166.7B	₩6.6B	-₩1.3B	4.0%	−1.4%	107.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-21

Earnings analysis

FY2025 annual revenue of KRW166.6 billion was the highest of the past three fiscal years compared with KRW132.7 billion in FY2024, KRW94.5 billion in FY2023, and KRW137.3 billion in FY2022.

However, operating profit was KRW6.6 billion (a 4.0% operating margin), slightly below FY2024's KRW7.0 billion (5.3%), and net income attributable to owners swung to a loss of KRW1.29 billion from a KRW6.37 billion profit in FY2024.

On a quarterly basis, Q4 2024 (KRW36.3 billion revenue, KRW4.9 billion operating profit) and Q1 2025 (KRW44.6 billion revenue, KRW7.5 billion operating profit, KRW6.2 billion net profit) were solid.

But Q3 2025 revenue fell sharply to KRW21.1 billion with an operating loss of KRW7.0 billion and a net loss of KRW8.1 billion, heavily damaging the full-year result.

Q4 2025 revenue recovered to KRW57.5 billion with operating profit of KRW6.4 billion, yet net profit was only KRW0.5 billion as the Q3 loss impact carried over.

This quarter-to-quarter volatility is the core driver of the annual net loss, suggesting a non-recurring item in a specific quarter rather than pure seasonality.

Media reports indicate that for the subsequent fiscal year (outside our dataset's scope, based on a preliminary disclosure dated August 24, 2026 and an audit report dated September 18, 2026, pending shareholder approval), net income turned positive at KRW7.4 billion because a prior-year non-recurring valuation-related loss did not recur.

Operating cash flow also deteriorated to negative KRW22.9 billion in FY2025 from positive KRW3.1 billion in FY2024, another point worth noting.

Industry analysis

The domestic school-uniform market faces the structural constraint of a declining school-age population.

According to Statistics Korea, the population aged 10-19 fell from 5.71 million in 2015 to 4.54 million this year, and is projected to decline further to around 2.99 million by 2035, per Statistics Korea data cited in industry coverage.

Against this backdrop, uniform makers including Hyungji Elite are shifting their growth axis toward non-uniform areas such as sports merchandising, workwear, and overseas expansion.

The sports merchandising market is seen as having relatively strong growth potential, buoyed by expanding pro-sports fandom and rising demand for goods and pop-up stores.

Still, the broader apparel sector is affected by soft consumer sentiment, and at the group level, Fashion Group Hyungji's overall debt ratio reportedly reached about 718% at the end of last year, more than ten times the roughly 68% industry average for apparel, highlighting group-wide financial strain.

More recently, amid a government review of uniform pricing, Hyungji Elite has become one of the major uniform makers subject to a Fair Trade Commission investigation, a potential regulatory risk.

Relative to peers, its overseas (China, Japan) uniform-supply track record and rapid sports-merchandising expansion are cited as points of differentiation.

Outlook

The company has stated a policy of expanding domestic and overseas market reach centered on growth momentum in its sports merchandising business.

Per a recent disclosure (based on an audit report dated September 18, 2026, pending shareholder approval and outside our confirmed financial dataset's scope), consolidated assets reportedly rose 8.8% to KRW201.6 billion, liabilities fell 12.2% to KRW84.3 billion, and equity rose 31.3% from KRW89.3 billion to KRW117.3 billion, lowering the debt ratio from about 107.5% to 71.9%.

Behind this balance-sheet improvement are a KRW21.3 billion rights offering decided in November 2025 and a push to sell owned real estate, including the roughly 64,000-square-meter Hyungji Global Fashion Complex in Songdo, Incheon and the roughly 58,896-square-meter Busan Art Mall-ing.

On the new-business front, subsidiary Hyungji Robotics has signed a technology cooperation and domestic exclusive commercialization agreement with China's Shanghai Zhongshuai Robotics, though this is still assessed as an early-stage effort.

The uniform segment continues expanding overseas supply in China and Japan, while the sports merchandising business is widening its reach through new club contracts and pop-up events at home and abroad.

Still, the outcome of the Fair Trade Commission's uniform-pricing probe and market scrutiny of the group's funding structure remain items to watch.

Valuation

PER

—

PBR

—

ROE

-1.4%

EPS

—

BPS

—

Dividend per share

—

With net income over the trailing four quarters showing a loss due to the most recent fiscal year's net loss, conventional earnings-based valuation metrics are difficult to interpret in this window.

It should also be considered that a large rights offering in November 2025 substantially increased the share count, with new shares listed in February 2026, reflecting a dilution effect on per-share metrics.

Because the basis for calculating price relative to net asset value has shifted following the capital raise, simple comparison with past bands should be viewed in the context of this equity change rather than in isolation. No dividend payment has been identified based on the most recent fiscal year.

There was also a recent case in which the de facto controlling shareholder and CEO reported a small on-market share purchase, but this is simply a fact about an individual executive's holding change and is difficult to interpret as a signal of the broader market's direction.

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 2026-09-21

Bull factors

Rapid Expansion of Sports Merchandising

The sports merchandising business is expanding its coverage from professional baseball, soccer, and e-sports to professional basketball, increasing its contribution to revenue.

According to reports, sales from the sports merchandising business reached KRW 33.9 billion, up 180% from KRW 12.1 billion in the same period last year, with the growth attributed to the expansion of new contracted teams, the popularity of partner teams, and the expansion of offline fan touchpoints through pop-up stores.

This aligns with the company's strategy to diversify its cash cow away from a school uniform-centered business structure. However, whether this growth momentum will continue into the next quarter needs to be confirmed through future disclosures.

Overseas School-Uniform Market Expansion

Following its establishment in the Chinese premium school uniform market, Elite Hyungji has expanded its overseas business scope by becoming the first domestic school uniform company to supply uniforms to Kyoto International School and Osaka Kongkang School in Japan.

In China, the company has secured a B2B supply chain through 'Shanghai Elite,' a joint venture with local company Bono. This is interpreted as an attempt to compensate for the stagnant domestic market caused by declining school-age population through overseas markets.

Balance-Sheet Repair via Asset Sales and Capital Raise

The company raised capital through a rights offering to shareholders in November 2025, and stated that it plans to prioritize using some of the secured funds to repay high-interest debt.

The company explained that a portion of the augmented capital will first be used to repay high-interest loans with limited extension options.

Reports based on recent audit reports (prior to shareholder meeting approval) indicate improvements in the capital and debt structure, suggesting that the effects of the financial structure improvement efforts are beginning to be partially confirmed.

Bear factors

Structural Growth Limits from Declining School-Age Population

Elite Hyungji's core business, Elite (school uniforms), faces the risk of a declining school-age population, with the population aged 10-19, which stood at 5.71 million in 2015 according to Statistics Korea, having decreased to 4.54 million this year.

If this trend continues, the domestic school uniform market itself could shrink over the long term. Whether the expansion of non-uniform businesses can offset this is a key point to watch.

High Debt Ratio at the Group Level

Fashion Group Hyungji, to which Elite Hyungji belongs, is estimated to have a debt-to-equity ratio of around 700%, and its interest coverage ratio is reported to have remained below 1x for an extended period.

This means that operating profits alone cannot cover financial expenses, leading to market concerns about the fund transaction structure among affiliated companies. Even if Elite Hyungji's standalone performance is solid, group-level risks could affect its stock price.

Repeated Capital Raises and Dilution Burden

The rights offering decided in November 2025 involved a scheduled new share issuance price of KRW 928, with a total of 23 million shares representing approximately 60% of total outstanding shares.

On the day the large-scale capital increase was announced, the stock price fell sharply, which is interpreted as the market's response to concerns about dilution of existing shareholders' stakes. If additional capital raising occurs repeatedly in the future, similar dilution burdens could recur.

Risk factors

Financial Risk

Hyungji Global, Elite Hyungji, and Hyungji I&C have repeatedly utilized convertible bonds (CB), bonds with warrants (BW), and corporate bonds to raise funds, and in the same vein, Fashion Group Hyungji issued exchangeable bonds (EB) using Hyungji Global common shares as the exchange target.

There is room to interpret the bond transaction structure among affiliated companies as providing short-term cash inflow effects to specific affiliates, which requires ongoing verification from an investor trust perspective.

The fact that operating cash flow turned negative in 2025 is also a point to watch in terms of liquidity management.

Regulatory Risk

As the school opening season approaches, concerns about the appropriateness of school uniform pricing have come to the forefront, and Elite Hyungji, as one of the major uniform manufacturers, has become subject to investigation by the Fair Trade Commission.

Depending on the investigation results, changes to pricing policies or business practices may be required. Since the progress and conclusion timeline of the investigation have not yet been confirmed, continuous monitoring is necessary.

New-Business Execution Risk

Hyungji Robotics, Elite Hyungji's subsidiary for its new robotics business, recently signed a technology cooperation and domestic exclusive commercialization agreement with China's Shanghai Zhongshuai Robot Co., Ltd., but as mentioned in reports, this business is still evaluated to be in its early stages.

The concept of applying clothing pattern and body shape analysis technology to robot wearable parts may require additional time and investment before commercialization.

Since the funding for new business investments relies on asset sales and capital raising, the pace of execution may be dependent on financial conditions.

What to watch next

Late September 2026
As a June fiscal-year-end company, its annual general meeting should confirm final approval of FY25 (July 2025-June 2026) financial statements. The key point to watch is whether the audit-report figures of KRW177.8 billion revenue, KRW8.4 billion operating profit, and KRW7.4 billion net profit are formally finalized.
Q4 2026
Watch for completion of the sale of owned real estate such as the Songdo Hyungji Global Fashion Complex and Busan Art Mall-ing, including the sale price and the split between debt repayment and new-business investment.
Mid-November 2026
Q1 FY26 (July-September 2026) earnings disclosures will indicate whether growth in sports merchandising and overseas school-uniform sales continues.
Second half of 2026
Monitor the progress and any outcome announcement of the Fair Trade Commission's uniform-pricing investigation, which could prompt pricing-policy changes.
From Q4 2026 onward
Follow-up disclosures should be checked to see whether Hyungji Robotics' technology cooperation and domestic exclusive commercialization agreement with a Chinese robotics firm progresses to actual product commercialization.

Overall view

Hyungji Elite has grown its business from a stable school-uniform core into sports merchandising, workwear, and overseas markets, with FY2025 annual revenue reaching its highest level in three years.

However, a sharp Q3 2025 loss damaged full-year net income, turning net income attributable to owners negative, while operating cash flow also swung negative.

The large November 2025 rights offering left a dual legacy of balance-sheet repair and dilution, a factor that must be considered when interpreting per-share metrics following the February 2026 new-share listing.

The high debt ratio and repeated capital-raising structure at the wider Fashion Group Hyungji level continue to be cited as a group-level financial risk.

Based on recent disclosures pending shareholder approval, some signs of balance-sheet improvement through asset sales and capital raises have emerged, but this information sits outside our confirmed dataset and warrants watching through the final approval process.

Risks from the declining school-age population, the uniform-pricing investigation, and early-stage new ventures such as robotics should be weighed alongside these positives.

Sources

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

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Report written 2026-09-21 · Data as of 2026-09-18

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.