PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
Revenue from premium brands such as Arc'teryx and Lululemon is expanding quickly, but tariffs, currency swings and seasonality have widened quarter-to-quarter earnings volatility.
2025 consolidated revenue rose about 12.3% year over year to roughly KRW 520.9 billion, while operating profit declined due to tariff and currency effects.
Arc'teryx shipment volume grew about 758% year over year in 2025, driving an upgrade in the brand mix.
The first quarter of 2026 posted an operating loss due to Indonesia's Lebaran holiday bonus (THR), though FX gains kept net income positive.
A new Indonesian production site called Holim is being secured, with construction targeted to begin in 2027.
Shareholder return measures including treasury share buybacks and cancellations have continued.
Hojeon Ltd. was established in 1985 and specializes in OEM manufacturing of high-performance sports and outdoor apparel. Its main production bases are in Indonesia (Hoga, Yongjin) and Vietnam, with more than 85% of output produced in Indonesia.
As of 2024, its major clients were The North Face, Under Armour and Lululemon, which together accounted for more than 70% of sales, while premium clients such as Arc'teryx, Vuori and Mackage have been expanding.
According to the company's own materials, it supplies outerwear and sportswear on an OEM basis to global apparel companies such as Under Armour, Athleta, Chico's and VF, and also produces team uniforms for U.S. professional leagues including MLB, NBA, NFL and NHL.
Its product lineup is concentrated in technically demanding categories such as Gore-Tex, down and military garments, which analysts note carry high barriers to entry.
On smart manufacturing, the company has collaborated with Seoul National University since 2017 to develop a smart factory specialized for apparel and has secured more than 68 domestic and international patents combined, and it has also worked with materials firm Newrizon to complete development of a PFAS-free nanofiber material as a potential new growth driver.
For long-term capacity expansion, brokerage coverage has described that the company operates Yongjin and Hoga as its core Indonesian production bases and is preparing a new site called Holim near Hoga, having already completed roughly 60% of the required land purchase with construction targeted for 2027, aiming for long-term revenue of more than $500 million, over twice that of Yongjin and Hoga combined.
Competitively, it shares some of the same global clients—such as The North Face, Arc'teryx and Patagonia—with other large Korean apparel OEM players including Youngone and Hansae.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩114.8B | ₩200M | 0.2% |
| 2025Q3 | ₩163.5B | ₩14.4B | 8.8% |
| 2025Q4 | ₩137.8B | ₩6B | 4.4% |
| 2026Q1 | ₩89.2B | -₩1.4B | −1.6% |
| 2026Q2 | ₩111B | ₩4.4B | 3.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩480B | ₩40.6B | ₩27B | 8.5% | 20.1% | 133.3% |
| 2023 | ₩441.5B | ₩35.1B | ₩17.2B | 8.0% | 11.5% | 108.3% |
| 2024 | ₩464B | ₩29.5B | ₩23.5B | 6.4% | 13.3% | 123.1% |
| 2025 | ₩520.9B | ₩25B | ₩12.5B | 4.8% | 6.8% | 125.5% |
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
2025 consolidated revenue was KRW 520.88 billion, up about 12.3% from KRW 463.97 billion in 2024, but operating profit fell to KRW 25.02 billion from KRW 29.52 billion, with operating margin declining from 6.4% to 4.8%.
Net income attributable to owners also fell, from KRW 23.51 billion in 2024 to KRW 12.48 billion in 2025. Operating margin declined for four straight years, from 8.5% in 2022 to 8.0% in 2023, 6.4% in 2024 and 4.8% in 2025.
According to company disclosures, 2025 results reflected that Arc'teryx shipment volume grew roughly 758% year over year, Swedish military uniform sales rose about 338%, and Kathmandu and Moose Knuckles sales increased approximately 92% and 243% respectively, reflecting the success of the buyer diversification strategy, but tariff-sharing costs tied to U.S. tariff policy partly reduced operating profit, and wider foreign-exchange losses from currency volatility weighed on net income.
By quarter, revenue was KRW 114.8 billion with operating profit of KRW 0.24 billion and a net loss attributable to owners of KRW 7.21 billion in the second quarter of 2025, before improving sharply to revenue of KRW 163.5 billion, operating profit of KRW 14.37 billion and net income of KRW 11.96 billion in the third quarter, then revenue of KRW 137.78 billion, operating profit of KRW 6.01 billion and net income of KRW 6.54 billion in the fourth quarter.
In the first quarter of 2026, revenue was KRW 89.2 billion with an operating loss of KRW 1.43 billion; the company attributed the year-over-year revenue decline mainly to fewer operating days during Indonesia's Lebaran holiday, and said the operating loss stemmed from higher labor costs tied to the holiday bonus known as THR, while foreign-exchange gains kept net income positive at KRW 0.78 billion.
The second quarter of 2026 saw revenue of KRW 110.98 billion, operating profit of KRW 4.35 billion and net income attributable to owners of KRW 0.49 billion, showing recovery in revenue and operating profit but only limited improvement in net income.
Over the trailing four quarters (Q3 2025 through Q2 2026), net income attributable to owners totaled KRW 19.76 billion, marking a move away from the loss recorded in the second quarter of 2025.
The global apparel OEM industry has been undergoing a reshuffling of production bases since changes in U.S. tariff policy.
Brokerage research has assessed that since the U.S. imposed global tariffs in 2025, China has effectively been priced out of the apparel OEM market by tariffs that remain in place, while Latin America carries lower tariffs but is unlikely to replace major Asian production hubs in the short term given constraints in skilled labor supply, raw material sourcing and production capacity.
Within this landscape, Hojeon, with its production concentrated in Indonesia and Vietnam, has been cited as a relative beneficiary.
On the demand side, the sportswear market is projected to grow from $180 billion in 2021 to $250 billion by 2026, a 6.8% pace, while high-performance apparel is expected to reach $1.733 trillion by 2028, growing 9.6% annually.
Peer Youngone Corporation, for comparison, had a second-quarter 2026 consolidated revenue consensus of KRW 1.1754 trillion, up 13.2% year over year, with an operating profit consensus of KRW 185.4 billion, up 27.2%, and premium outdoor brand Arc'teryx was seen posting strong growth in the second quarter, with its share of Youngone's OEM segment revenue rising above 10%.
This suggests Hojeon shares both the tailwind and the competitive overlap of the same brand cycle with larger peers. Still, rising Indonesian wages, holiday-related labor costs such as THR, and the eventual finalization of U.S. tariff policy remain ongoing variables for margins across the industry.
Regarding 2026, the company has said that Arc'teryx sales are expected to more than double year over year, and with new Carhartt sales added, achieving the annual business plan appears feasible.
Earlier, at the time of its 2025 results announcement, the company also stated that Arc'teryx sales this year are expected to more than double, and new sales from global workwear brand Carhartt are set to be fully reflected, with the plan to proactively respond to tariff policy changes while continuing to improve profitability.
On capacity, the 2027 construction target for the new Holim site is reported to remain in place and stands as a key variable for medium-term revenue growth.
Shareholder returns have also continued: in April 2026, the company held a board meeting and disclosed a decision to cancel 310,000 treasury shares, equivalent to about 3.3% of total shares outstanding.
At the same time, a company official stated that Arc'teryx sales are expected to grow more than twofold this year, and sales to new buyer Carhartt are also expected to ramp up, so the company plans to continue a shareholder-friendly management stance alongside its expanding revenue base.
SK Securities forecast in a May 2026 report that normalized operating days in the second quarter, combined with deferred production being added back, are likely to naturally offset the relatively slow season.
Taken together, expanding premium-brand sales and new client additions form the core of top-line growth, while tariff and currency variables, along with the timing of new-plant investment, remain the key determinants of medium-term margin direction.
The stock trades at a considerable discount to book value (net asset value), which can be read as the market maintaining a cautious stance given the earnings volatility driven by tariffs and currency moves in recent years.
On the dividend side, the company has maintained a policy of paying the same dividend per share each year, suggesting a consistent shareholder-return stance.
SK Securities stated in a May 2026 report that, given that industry peers trade at a price-to-earnings ratio of roughly 9 to 11 times, the stock remains at a notably discounted level, and presented a target price of KRW 9,500 with a buy rating.
That said, this reflects one brokerage's view at a specific point in time, and considering the operating loss recorded in the first quarter of 2026 and the limited net-income improvement in the second quarter, market views on the pace and durability of the earnings recovery could diverge.
Ultimately, the valuation appears to hinge on how quickly earnings recover as premium-brand sales expand, weighed against how much of that gain is offset by tariff, currency and labor cost variables.
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
Arc'teryx shipment volume grew roughly 758% year over year in 2025, and the company expects more than a doubling of related sales again in 2026. As new clients such as Carhartt ramp up, there is room for the premium-brand share of revenue to rise further.
A diversified buyer portfolio spanning Swedish military uniforms, Kathmandu and Moose Knuckles has also been cited as reducing reliance on any single customer.
Following changes in U.S. tariff policy, China's competitiveness in apparel OEM has weakened, while Hojeon, with production concentrated in Indonesia and Vietnam, has been described as a relative beneficiary.
Although some buyers are attempting near-shoring to Latin America, analysts note that skilled labor, raw material sourcing and capacity constraints make short-term replacement difficult. This suggests existing Asian production hubs could retain their competitiveness for some time.
Shareholder return measures have continued, including an April 2026 decision to cancel 310,000 treasury shares, equivalent to about 3.3% of total shares outstanding. The company has also maintained a policy of paying the same dividend per share every year.
Such policies can be seen as signaling a commitment to shareholder value even during periods of significant earnings volatility.
Operating margin fell for four consecutive years, from 8.5% in 2022 to 4.8% in 2025. Tariff-sharing costs and labor-cost factors such as Indonesia's THR holiday bonus have continuously eroded margins. Without a corresponding improvement in profitability, the benefits of top-line growth could remain limited.
Net income attributable to owners fell in 2025 versus 2024 due to wider foreign-exchange losses, and the first quarter of 2026 might have posted a net loss without FX gains. Net income improvement in the second quarter of 2026 also lagged the recovery in operating profit. If currency volatility persists, the gap between operating results and net income could recur.
In the first quarter of 2026, fewer operating days and higher holiday bonuses tied to Indonesia's Lebaran holiday led to an operating loss. Conversely, the third quarter of 2025 saw a sharp improvement due to peak-season effects. Such seasonal swings make it harder to assess results on a single-quarter basis.
Changes in and negotiation outcomes of U.S. tariff policy could alter the tariff cost-sharing structure. The margin impact could widen or narrow depending on how tariff burdens are allocated in negotiations with brand clients. The timing and direction of policy changes remain difficult to predict.
Because revenue and costs arise in multiple currencies, exchange-rate movements directly affect net income. In 2025 and early 2026 results, currency-related gains and losses have already been shown to change the direction of reported earnings.
Simultaneous volatility across currencies such as the Korean won-dollar rate and the Indonesian rupiah could continue to complicate net-income forecasting.
Seasonal labor payments such as Indonesia's THR holiday bonus affect specific quarters' results. Over the long run, continued wage-increase pressure in Indonesia could add to cost burdens. Given the large workforce the business relies on, labor-related issues also carry some risk of production disruption.
Check the third-quarter 2026 earnings disclosure — the key is whether expanding Arc'teryx and Carhartt sales, together with peak-season effects, translate into actual profit improvement.
Monitor whether U.S. tariff policy changes and how tariff-sharing costs are ultimately reflected — this will shape the direction of the full-year operating margin.
Watch for confirmation of whether construction begins at the new Holim site in Indonesia and whether a concrete investment timeline is disclosed. Any delay or scaling-back would change the medium-term revenue growth scenario.
This is when the preliminary full-year 2026 results are likely to be disclosed, allowing a check on whether the company's stated goals — doubling Arc'teryx sales and ramping up new Carhartt revenue — were achieved.
Continue to watch for disclosures on additional treasury share buybacks, cancellations, or changes to dividend policy related to shareholder returns.
Hojeon Ltd. continues to grow its top line on the back of expanding sales to premium brands such as Arc'teryx, Lululemon and Carhartt, with 2025 revenue rising 12.3% year over year to roughly KRW 520.9 billion.
However, tariff-sharing costs and currency volatility have combined to push operating margin down for four consecutive years to 4.8%, and the first quarter of 2026 recorded an operating loss due to seasonal factors.
Revenue and operating profit recovered in the second quarter, but the improvement in net income was limited, leaving room for differing views on the pace of a qualitative earnings recovery.
Its Indonesia-centered production base has been cited as a relative advantage under the current U.S. tariff environment, and the 2027 construction target for the new Holim site along with treasury share cancellations form the core of its medium-term narrative.
Conversely, if labor costs, tariffs and currency all move unfavorably at once, quarter-to-quarter earnings swings could persist. Investors will want to keep monitoring whether the ongoing brand-mix improvement translates into an actual, sustained improvement in margins in coming quarters.
Report written 2026-09-05 · Data as of 2026-09-04
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