PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩2,100 per share · Prices as of the 2026-10-02 close
Youngone Corporation's performance apparel OEM business keeps posting record quarterly revenue on rising orders from key clients such as Arc'teryx, while the pace of loss reduction at its SCOTT bicycle unit and the execution of shareholder-return pledges remain the open variables.
Second-quarter 2026 consolidated revenue of KRW 1,231.7 billion and operating profit of KRW 175.6 billion marked a record quarterly top line, up roughly 19% and 21% year on year respectively.
OEM accounts for about 69% of total revenue, and brokerages estimated second-quarter OEM sales rose 22-23% in won terms and 14-15% even in dollar terms.
The SCOTT bicycle brand still posted a KRW 25.7 billion operating loss in the second quarter of 2026, though inventories fell 18% year on year, which analysts described as easing the burden.
The company raised its 2026-2027 consolidated payout ratio target from 25% to 30% and announced a KRW 50 billion share buyback, but the filing did not include a cancellation plan for the repurchased shares.
US Section 301 measures effective 24 July 2026 apply an extra 10% duty on Bangladeshi goods and 12.5% on Vietnamese goods, leaving country-level cost and sourcing structures as a variable.
Youngone Corporation was spun off from Youngone Holdings in 2009 and manufactures apparel and footwear on an OEM basis through overseas subsidiaries in Bangladesh and Vietnam for export. It has invested in textile facilities in Vietnam and Bangladesh to produce its own fabric for performance knitwear.
It makes and exports products for some 40 global brands including The North Face, lululemon and Patagonia from plants in Bangladesh, Vietnam and El Salvador. The OEM business accounts for about 69% of total revenue (Daishin Securities, August 2026).
Arc'teryx, once a single-digit share of sales, has risen to roughly 10-15% and has become a pillar of earnings stability. Outdoor and sports brands such as Arc'teryx, The North Face, Patagonia, lululemon and On are cited as major clients.
The second axis is the brand and distribution segment: the company acquired Outdoor Research of the US in 2014 and a majority stake in Swiss premium bicycle brand SCOTT in 2015, running bicycle and sports brand distribution and logistics. Its SCOTT stake rose to 96.71% after buying out the founder's shares.
Competitively, it is viewed as maintaining relatively stable order flow versus commodity apparel OEM peers thanks to diversified production bases in Bangladesh and Vietnam and performance-apparel manufacturing capability.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩1T | ₩145.7B | 14.0% |
| 2025Q3 | ₩1.2T | ₩181.2B | 15.0% |
| 2025Q4 | ₩1T | ₩105.2B | 10.4% |
| 2026Q1 | ₩895.8B | ₩120.4B | 13.4% |
| 2026Q2 | ₩1.2T | ₩175.6B | 14.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩3.9T | ₩823B | ₩674.5B | 21.0% | 24.0% | 44.9% |
| 2023 | ₩3.6T | ₩637.1B | ₩516B | 17.7% | 15.9% | 47.6% |
| 2024 | ₩3.5T | ₩315.6B | ₩427.1B | 9.0% | 11.6% | 38.4% |
| 2025 | ₩4.1T | ₩514.4B | ₩492.3B | 12.7% | 12.0% | 39.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On the confirmed financials, operating profit fell for two straight years: from KRW 823.0 billion on revenue of KRW 3,911.0 billion in 2022 (21.0% margin) to KRW 637.1 billion on KRW 3,604.4 billion in 2023 (17.7%) and KRW 315.6 billion on KRW 3,517.8 billion in 2024 (9.0%).
In 2025 revenue reached KRW 4,063.6 billion with operating profit of KRW 514.4 billion, lifting the margin back to 12.7%, while net profit attributable to owners was KRW 492.3 billion.
The downcycle reflected a split: the manufacturing OEM division saw revenue grow on an order recovery from the second half of 2024, while SCOTT struggled with slowing global bicycle demand and excess inventory.
Quarterly seasonality was pronounced - revenue and operating profit of KRW 1,038.2 billion/145.7 billion in 2Q25, KRW 1,204.7 billion/181.2 billion in 3Q25 and KRW 1,009.3 billion/105.2 billion in 4Q25 - before KRW 895.8 billion/120.4 billion in 1Q26 and a rebound to KRW 1,231.7 billion/175.6 billion in 2Q26.
The 2Q26 operating margin of 14.3% edged above 14.0% a year earlier, and net profit attributable to owners of KRW 156.6 billion far exceeded the KRW 119.3 billion of 2Q25. In 1Q26, owners' net profit of KRW 150.3 billion exceeded operating profit, indicating non-operating items boosted the bottom line.
By segment, two brokerages estimated second-quarter OEM sales rose 22-23% in won and 14-15% in dollars, with OEM operating profit up 18%. By contrast, SCOTT recorded a KRW 25.7 billion operating loss in the quarter while its inventories fell 18% year on year.
Operating cash flow moved the other way from earnings, easing from KRW 623.7 billion in 2024 to KRW 374.9 billion in 2025, while the debt-to-equity ratio stood at 39.3% at end-2025 versus 47.6% at end-2023.
The global performance apparel OEM cycle has become highly brand-specific. While the broad apparel OEM environment has slowed, volumes in the high value-added outdoor segment have been expanding.
KB Securities noted in a June 2026 report that Amer Sports, owner of Arc'teryx, raised its annual revenue growth guidance for the technical apparel segment from 18-20% to 22-24%.
Trade conditions have been reset: the USTR's forced-labor Section 301 actions took effect on 24 July 2026, applying an additional 10% duty to origins including Bangladesh, Cambodia and India and 12.5% to China, Vietnam and Brazil.
Bangladesh, Cambodia, Indonesia and Malaysia, however, receive a roughly three-year special tariff-rate-quota scheme for certain volumes made with US cotton and materials.
The bicycle cycle remains near a trough: in a quarterly report the company said the recovery in the global bicycle market, including Europe, has been slower than expected, that SCOTT's operating environment will stay difficult for some time and that the pace of recovery in 2026 will be limited.
On positioning, analysts argue that running multiple production bases provides a buffer against tariff, freight and wage swings, and that because global brands weigh supply-chain stability and delivery capability when selecting vendors, this production infrastructure is an advantage in winning new orders.
Brokerage commentary also frames profit growth as driven by higher volumes and utilization rather than price increases.
Brokerage estimates for 2026 assume OEM-led top-line growth. In an 18 August 2026 report, Daishin Securities maintained a target price of KRW 140,000 and a Buy rating, projecting 2026 consolidated revenue of KRW 4,548.0 billion and operating profit of KRW 628.0 billion, up 12% and 22% from 2025.
KB Securities, in a 4 June 2026 report, maintained a KRW 120,000 target price and Buy rating with full-year revenue of KRW 4,520.0 billion and operating profit of KRW 665.0 billion.
DB Securities in late July 2026 forecast revenue of KRW 4,409.0 billion and operating profit of KRW 683.0 billion, with OEM operating profit of KRW 698.0 billion and the brand and distribution operating loss narrowing to KRW 15.0 billion.
In the brand segment, a USD 100 million investment is planned for SCOTT's product innovation, digital marketing, channel expansion and diversification into apparel and footwear.
On the manufacturing side, the group is expanding global capacity, converting to smart factories and investing in automation, and plans to raise solar generation capacity from 58MWp at end-2025 to 71MWp in 2026 and 100MWp by 2030.
Capital allocation centers on maintaining a consolidated payout ratio of around 30% through 2027 plus an additional KRW 50 billion of share buybacks, while parent Youngone Holdings said it plans to cancel a further 5.5% of its outstanding shares in the second half.
That said, the company's own view that the bicycle market recovery is being delayed means the timing of a return to profit in the brand segment remains to be confirmed.
The shares trade at a discount to book value, and multiples on earnings metrics also sit below the average of domestic consumer and fashion listings.
The earnings direction itself has turned - two straight years of profit decline through 2024, a margin recovery in 2025 and growth in the first half of 2026 - so multiples based on the weak stretch differ widely from those based on current earnings.
NH Investment & Securities judged that SCOTT inventory normalization and the upgraded dividend policy would gradually improve factors that had acted as valuation discounts.
On the other side, Quad Asset Management called the corporate value-up plan a positive change that nonetheless falls short of its demands and is unlikely to help capital efficiency much, and critics noted the buyback plan contained no cancellation policy, limiting the shareholder-return effect.
The multiple level therefore hinges largely on three variables: how quickly SCOTT's profit and loss normalizes, how repurchased shares are handled, and the durability of OEM profits. On dividends, it is confirmed that total cash dividends for fiscal 2025 rose 49.3% to KRW 89.4 billion.
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 2026-09-04
Arc'teryx's share of sales has climbed to 10-15%, which analysts describe as a pillar of earnings stability. In the second quarter, sales to VFC and Patagonia also grew at double-digit rates alongside Arc'teryx. The client pool is widening further to include emerging sports brand On. Analysts note that in OEM, higher output dilutes fixed costs and materially improves the operating margin.
SCOTT's second-quarter operating loss was KRW 25.7 billion, but inventories fell 18% year on year and about 30% in local currency excluding the strong Swiss franc. Two brokerages said excess inventory clearance is well advanced and the loss is likely to narrow in the second half.
Following a win at ICC arbitration and the buyout of the second-largest shareholder, the SCOTT stake reached 96.71%. With the joint-management structure dissolved, there is more room to adjust product lineups and channel strategy unilaterally.
The company raised its 2027 payout ratio target from 25% to 30%, lifted interim dividends and announced a KRW 50 billion buyback. Its filing said some targets were raised in light of the revised Commercial Act's shareholder-protection duty and its medium-term investment plans.
On confirmed financials, the debt-to-equity ratio was 39.3% at end-2025 versus 47.6% at end-2023, with total equity of KRW 4,105.5 billion. That capacity bears directly on funding SCOTT's normalization while expanding returns.
The company itself said SCOTT's operating environment will remain difficult for a while as the global bicycle market recovery, including Europe, is delayed, with only limited recovery in 2026.
Cash injected into SCOTT over the past five years amounts to about KRW 643.8 billion, with roughly KRW 340.0 billion of debt guarantees still outstanding. The loan limit was raised to CHF 170 million and the existing loan maturity extended to December 2026.
If the brand segment's return to profit is delayed, it can keep weighing on consolidated earnings and cash allocation.
Section 301 measures effective 24 July 2026 apply an extra 10% duty on Bangladeshi origin and 12.5% on Vietnamese origin. Commentary continues to flag global consumption weakness and tariff costs as live variables.
If the sales cycle of a brand that has grown into a large share of revenue turns, volume swings would feed straight into utilization and margins. The market has repeatedly pointed to relatively high single-brand dependence.
On confirmed financials, operating cash flow fell from KRW 623.7 billion in 2024 to KRW 374.9 billion in 2025, diverging from the operating profit recovery. OEM inventories reached a record KRW 817.6 billion at end-1Q26, which can be read as a leading indicator of orders but also as a working-capital burden.
DB Securities said a favorable exchange rate, alongside dollar sales growth in OEM, contributed to margin improvement. Should currencies move the other way, won-converted revenue and margin gains would compress.
Most revenue is export-based in dollars and other foreign currencies, so won moves feed directly into sales and margins.
Section 301 forced-labor duties were finalized at 10% or 12.5% by origin, effective 24 July 2026, and the measures automatically expire after four years unless renewed, though the USTR can amend or terminate them if circumstances change.
Because rates differ by production country, client sourcing allocations - and thus regional volume shifts - need continued monitoring.
On 30 June 2026, Quad Asset Management, holding a 1.7% stake, sent an open letter demanding total shareholder returns be raised to 70%. That letter also sought cleanup of related-party transactions and reform of executive compensation, yet the value-up plan addressed only dividends and buybacks.
Treasury shares not cancelled could return to the market later, which is also cited as a concern. If the gap between demands and company responses persists, the debate could resurface through shareholder-meeting agenda items.
Production is concentrated in a few countries such as Bangladesh and Vietnam, so shifts in local labor, political and logistics conditions can affect lead times and costs.
The group is expanding solar power, eco-friendly materials, smart-factory and automation investment centered on Bangladesh's KEPZ, which raises payback timelines and depreciation. In the brand segment, the planned USD 100 million investment in SCOTT may take time to show up in results.
The success of expanding non-bicycle lines such as e-bikes, apparel and helmets while rationalizing SKUs is another variable.
Third-quarter filing. Key items are whether OEM dollar-based sales growth holds the double-digit pace seen in the second quarter and how far SCOTT's operating loss narrows from KRW 25.7 billion.
SCOTT loan maturity. The CHF 170 million facility was extended to December 2026, so any further extension or increase - and its terms - will indicate the intensity of funding needs in the brand segment.
Progress on the KRW 50 billion buyback and any disclosure on cancelling the repurchased shares. With no cancellation policy stated, the treatment will determine share-count effects and the substance of shareholder returns.
Full-year 2026 results and the board's year-end dividend decision. Actuals can be compared with market estimates such as Daishin Securities' August 2026 operating profit forecast of KRW 628.0 billion, alongside execution of the 30% payout target.
Changes in the US Section 301 duties and the special tariff-rate-quota scheme applied to Bangladesh and Cambodia, plus updated annual guidance from key clients such as Amer Sports, will help gauge the direction of 2027 order volumes.
Youngone Corporation's earnings profile boils down to two axes moving in different directions: performance apparel OEM and the SCOTT bicycle brand.
On confirmed financials, profitability that had slipped from a 21.0% operating margin in 2022 to 9.0% in 2024 recovered to 12.7% in 2025, and the second quarter of 2026 delivered record quarterly revenue of KRW 1,231.7 billion with operating profit of KRW 175.6 billion.
Second-quarter OEM sales rose 14-15% even in dollar terms and OEM operating profit was up 18%, while SCOTT remained loss-making but cut inventories by 18%. The counterweights are equally concrete.
Operating cash flow fell from KRW 623.7 billion in 2024 to KRW 374.9 billion in 2025, the company expects only a limited pace of bicycle market recovery in 2026, and a new set of origin-based additional duties has taken effect.
On capital allocation, a higher payout target and a KRW 50 billion buyback were announced, yet no plan to cancel the repurchased shares was included.
The items to verify from here are therefore threefold: the durability of OEM volumes and utilization, the pace of normalization in SCOTT's profit and loss, and how the shareholder-return policy is actually executed. This report is for information purposes and contains no buy or sell recommendation or target price.
Report written 2026-09-05 · Data as of 2026-09-04
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