KOSDAQRetail & Consumer308100

Hyungji Global

₩256▲ 1.19%2026-10-02 close

Market Cap

₩6.6B

Turnover

₩400M

Volume

1.6M

Shares out.

25.8M

PER

—

PBR

0.1×

EPS

-₩347

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

Hyungji Global: Profit Rebound Meets a Listing-Maintenance Test

Hyungji Global swung back to a consolidated profit in the second quarter of 2026, but a managed-stock designation and a convertible-bond default event have made meeting listing-maintenance requirements its top challenge.

1
Hyungji Global posted operating and net profit in both the first and second quarters of 2026, with second-quarter revenue jumping to KRW 23.34 billion from the prior quarter.
2
The company was designated a KOSDAQ managed stock on August 13, 2026, for falling below both the KRW 20 billion market-cap and KRW 1,000 share-price thresholds.
3
The managed-stock designation triggered an event of default on its 11th private convertible bond (about KRW 5.5 billion in principal and interest), though the company reached an agreement with bondholders to reschedule repayment.
4
Controlling shareholder Fashion Group Hyungji raised its stake from 22.18% to 27.59% by subscribing to a July 2026 third-party share issue at a price above the prevailing market rate.
5
Annual revenue has declined for four straight years since 2022 with continuing operating losses, and the 2025 net loss attributable to owners more than doubled year over year, partly due to convertible-bond conversion losses.

Business structure

Hyungji Global is a KOSDAQ-listed company that changed its name from Castelbajac Company, and it is known as a specialist operator of the Castelbajac golf-apparel brand.

Its controlling shareholder is Fashion Group Hyungji, which raised its stake from 22.18% to 27.59% by participating in a third-party share placement in July 2026.

Fashion Group Hyungji is a diversified fashion group spanning women's wear brands such as Crocodile Lady, men's wear brands including Yezac and Bon, and the school-uniform brand Elite, with Hyungji Global handling the group's golf-apparel and retail operations.

In March 2026 the company acquired Hyungji Esquire, a footwear subsidiary with an accumulated deficit of about KRW 25 billion, for KRW 6.9 billion, taking over the 51.12% stake previously held by Fashion Group Hyungji.

That acquisition added a new footwear segment to consolidated results, with the related revenue beginning to show up in earnest from the second quarter of 2026.

Distribution runs through department-store and outlet locations alongside its own online store, and given the seasonality of golf apparel, store-level efficiency by trading area has a direct bearing on results.

The competitive landscape is a multi-brand market in which numerous golf-apparel brands owned by large domestic fashion groups compete alongside imported licensed brands for the same department-store and outlet floor space, with no single brand showing a clearly dominant share.

Second-generation executive Vice Chairman Choi Jun-ho runs both Hyungji Global and Hyungji Elite, and Hyungji Global is one of three listed affiliates of Fashion Group Hyungji, alongside Hyungji Elite and Hyungji I&C.

Earnings trend

Quarterly revenue · Operating profit

₩10.1B-₩1B25Q2₩9.8B-₩1.9B25Q3₩9.2B-₩6.3B25Q4₩8.2B₩600M26Q1₩23.3B₩300M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩61.8B-₩9.4B2022₩48.4B-₩1B2023₩39.8B-₩9.4B2024₩37.7B-₩8.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩10.1B	-₩1B	−9.5%
2025Q3	₩9.8B	-₩1.9B	−19.7%
2025Q4	₩9.2B	-₩6.3B	−68.7%
2026Q1	₩8.2B	₩600M	7.5%
2026Q2	₩23.3B	₩300M	1.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩61.8B	-₩9.4B	-₩9.3B	−15.2%	−15.2%	95.2%
2023	₩48.4B	-₩1B	-₩4.5B	−2.1%	−8.0%	71.3%
2024	₩39.8B	-₩9.4B	-₩16.3B	−23.6%	−40.3%	120.5%
2025	₩37.7B	-₩8.1B	-₩34.3B	−21.5%	−58.3%	65.1%

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

Hyungji Global's consolidated revenue fell for four straight years, from KRW 61.76 billion in 2022 to KRW 48.42 billion in 2023, KRW 39.8 billion in 2024, and KRW 37.68 billion in 2025.

Operating losses persisted throughout the period; the 2025 operating loss of KRW 8.08 billion (an operating margin of -21.5%) was narrower than 2024's KRW 9.39 billion (-23.6%) but still much wider than 2023's KRW 1.01 billion (-2.1%).

The net loss attributable to owners widened to KRW 34.34 billion in 2025 from KRW 16.32 billion a year earlier, driven largely by a KRW 25.88 billion loss recorded in the second quarter of 2025 alone.

That loss is reportedly linked to a roughly KRW 21 billion conversion loss recognized when convertible bonds were converted en masse into shares, which pushed the accumulated deficit up to KRW 46.1 billion.

The trend reversed in 2026: first-quarter revenue of KRW 8.22 billion came with an operating profit of KRW 0.62 billion, and second-quarter revenue nearly tripled quarter over quarter to KRW 23.34 billion, with operating profit of KRW 0.26 billion and net profit attributable to owners of KRW 0.78 billion.

Much of this second-quarter revenue surge and profit swing stems from the newly consolidated results of Hyungji Esquire, acquired in March 2026, and media coverage attributed a substantial portion of the first-half revenue growth of 68.7% and operating-profit growth of 491% to this expanded scope of consolidation.

Operating cash flow deteriorated from an inflow of KRW 7.52 billion in 2023 to outflows of KRW 3.92 billion in 2024 and KRW 7.87 billion in 2025, indicating actual cash generation has yet to recover.

The debt ratio rose to 120.5% in 2024 before easing to 65.1% in 2025, reflecting capital raising and affiliate restructuring.

Industry analysis

Hyungji Global operates as a specialist in the Castelbajac golf-apparel brand, within a domestic golf-apparel market structured around multiple brands owned by large fashion groups competing alongside imported licensed brands for the same department-store and outlet floor space.

Raising per-store efficiency is seen as the key lever, and growth appears to have slowed with intensifying discount competition once the pandemic-era boost to golf participation faded.

Fashion Group Hyungji's affiliates have repeatedly raised funds through acquisitions of distressed subsidiaries and issuance of convertible bonds and bonds with warrants in recent years, a process that involved recurring intercompany lending and equity restructuring that at times undermined minority shareholder confidence.

Starting in July 2026, KOSDAQ listing-maintenance rules were tightened so that 30 consecutive trading days below a KRW 20 billion market cap or a KRW 1,000 share price trigger a managed-stock designation, and under this new standard all three of Fashion Group Hyungji's listed affiliates—Hyungji Global, Hyungji Elite, and Hyungji I&C—were designated managed stocks.

Hyungji Elite has moved to resolve the price requirement through a 5-for-1 share consolidation, while Hyungji Global and Hyungji I&C have yet to restore compliance with listing-maintenance requirements.

An industry source noted that how quickly these companies can lift their share prices and market capitalization through earnings improvement will be the key variable determining whether they retain their listings.

Outlook

The company attributes its second-quarter 2026 return to profit to a restructuring of its business that includes the consolidation effect from Hyungji Esquire, and whether that effect continues into the third quarter and beyond is a key point to watch.

Hyungji Global reached an agreement with bondholders to reschedule repayment of about KRW 5.5 billion in principal and interest on its 11th private convertible bond, which it had failed to pay after an event of default triggered by the managed-stock designation, easing the immediate liquidity pressure for now.

A company representative explained that the default was a procedural matter automatically triggered under tightened delisting rules, separate from the company's underlying financial soundness.

Controlling shareholder Fashion Group Hyungji expanded its stake by subscribing to new shares at a price above the market rate in the July 2026 rights issue, which was described as reflecting the controlling shareholder's confidence in the company's business outlook and asset value.

A group representative said affiliates would continue pursuing management efficiency, competitiveness through new businesses, and overseas market expansion in response to the managed-stock designations.

However, no specific revenue or profit guidance, or timeline for new brands or capacity expansion, has been officially confirmed.

To exit managed-stock status, the company must maintain both the KRW 20 billion market-cap and KRW 1,000 share-price thresholds for at least 45 consecutive trading days within 90 trading days of the designation date, and whether it meets this requirement remains the biggest variable for its continued listing.

Valuation

PER

—

PBR

0.1×

ROE

-15.5%

EPS

-₩347

BPS

₩2,463

Dividend per share

₩0

Hyungji Global tends to trade at a large discount to net asset value, which can be read as reflecting the managed-stock designation and delisting concerns being priced in to a significant degree.

Net income summed over the most recent four quarters remains in loss territory, making profit-based valuation comparisons of limited use. No dividend payments have been confirmed in recent years, so shareholder returns via dividends offer little appeal.

That said, consecutive quarters of operating and net profit in the first and second quarters of 2026 mark a different signal from the loss trend of prior years, and whether this profit swing is a temporary effect of expanded consolidation scope or the start of underlying business improvement will need to be confirmed by upcoming quarterly results.

Because trading volume and price volatility can increase under managed-stock status, this institutional risk should be weighed alongside any assessment of the share price relative to net asset value.

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

Two Consecutive Quarters of Profit

Hyungji Global posted operating profit of KRW 0.62 billion in the first quarter of 2026 and operating profit of KRW 0.26 billion with net profit attributable to owners of KRW 0.78 billion in the second, marking back-to-back profitable quarters.

Second-quarter revenue of KRW 23.34 billion was nearly triple the prior quarter's KRW 8.22 billion. While the consolidation of Hyungji Esquire is cited as the main driver of growth, two consecutive profitable quarters differ from the loss pattern of recent years.

Controlling Shareholder's Above-Market Capital Injection

Fashion Group Hyungji raised its stake from 22.18% to 27.59% by subscribing to new shares at KRW 559 in July 2026, a 10% premium to the reference price. The new shares carry a one-year lock-up, reducing incentive for short-term selling.

Unlike typical discounted third-party placements, subscribing above market price is a fact that reflects the controlling shareholder's willingness to inject capital.

Trading at a Discount to Net Assets

Hyungji Global's shares tend to trade at a level below the company's net asset value. This discount is interpreted as largely reflecting the managed-stock designation and delisting concerns.

Whether this gap narrows if the designation is resolved or earnings improvement continues is something that will require ongoing observation.

Bear factors

Managed-Stock and Delisting Risk

Hyungji Global was designated a managed stock on August 13, 2026, for falling below both the KRW 20 billion market-cap and KRW 1,000 share-price thresholds. If it fails to meet both criteria for at least 45 consecutive trading days within 90 trading days of the designation, it could face a delisting review. Affiliate Hyungji Elite responded with a share consolidation, but Hyungji Global has yet to restore compliance.

Qualitative Limits to the Profit Improvement

Much of the second-quarter 2026 improvement in revenue and profit is attributed to the consolidation effect of Hyungji Esquire, acquired in March 2026.

Media analysis has attributed a substantial portion of the first-half revenue growth of 68.7% and operating-profit growth of 491% to this expanded scope of consolidation. Whether the core golf-apparel business is fundamentally improving, excluding this consolidation effect, has not yet been clearly confirmed.

Weaker Balance Sheet and Cash Generation

Operating cash flow turned from an inflow in 2023 to consecutive outflows in 2024 and 2025, and the 2025 net loss attributable to owners more than doubled from a year earlier, partly due to convertible-bond conversion losses.

The managed-stock designation also triggered an event of default that left the company unable to make timely principal and interest payments on a convertible bond.

The private bond credit rating of parent Fashion Group Hyungji has also been downgraded, raising questions about the group's capacity to support its affiliates.

Risk factors

Listing-Maintenance and Liquidity Risk

Failure to meet both listing-maintenance criteria for 45 consecutive trading days within 90 trading days of the designation could trigger a delisting review.

The managed-stock designation has already caused a delay in repaying a convertible bond due to an event-of-default clause, raising the possibility that similar contractual conditions on other debt could be triggered in a chain reaction.

If delisting materializes, options for raising capital through equity markets, including rights issues, could shrink significantly.

Financial Soundness Risk

Hyungji Global's standalone pre-tax loss in 2025 reportedly reached 49.4% of equity, close to the 50% threshold that triggers managed-stock designation on that basis.

Because a repeat of the same trigger the following year could lead to a delisting review, the trend in this ratio in future settlements warrants close attention. The risk of recurring one-off capital-related losses, such as the accumulated deficit expansion tied to convertible-bond conversions, cannot be ruled out.

Governance and Affiliate-Linkage Risk

If Hyungji Global and Hyungji I&C were delisted, there is a possibility they could sell their combined roughly 9.1% stake in Hyungji Elite to raise liquidity. This could create supply pressure on Hyungji Elite's share price as well.

With second-generation Vice Chairman Choi Jun-ho concurrently running both Hyungji Global and Hyungji Elite, market attention to intercompany fund and equity movements is likely to continue.

What to watch next

November 16, 2026
The statutory filing deadline for the third-quarter report, when it will be possible to check whether the Hyungji Esquire consolidation effect persists in third-quarter revenue and profit and whether the core business is recovering.
December 2026
Roughly 90 trading days will have elapsed since the August 13, 2026 managed-stock designation, and whether the company met both the market-cap and share-price thresholds for 45 consecutive trading days will determine whether the designation is lifted or a delisting review proceeds.
Fourth quarter of 2026
It will be worth confirming whether the rescheduled installment repayment agreed with bondholders on the 11th private convertible bond is actually being honored, and whether similar events of default recur.
Trading days from October to December 2026
Daily market capitalization and closing price should be monitored to see whether they recover above the managed-stock exit thresholds of KRW 20 billion and KRW 1,000, and whether any recovery is sustained for 45 consecutive trading days.

Overall view

Hyungji Global posted operating and net profit in both the first and second quarters of 2026, breaking from the loss pattern that had persisted for several years.

However, much of this improvement is attributed to the consolidation effect of Hyungji Esquire, acquired in March 2026, and the degree of improvement in the core business excluding this expanded consolidation scope has not yet been clearly confirmed.

At the same time, the company was designated a managed stock in August 2026 for falling below market-cap and share-price thresholds, and the resulting event of default led to a real liquidity squeeze when it failed to make timely payments on a convertible bond.

Controlling shareholder Fashion Group Hyungji's decision to subscribe to a rights issue above market price and expand its stake is a fact that signals a responsible-management stance, but the structural issue of all three group affiliates being simultaneously designated as managed stocks remains unresolved.

On the financial side, operating cash flow has recorded outflows for two consecutive years, and the standalone net-loss ratio has at times come close to the managed-stock trigger threshold, meaning continued scrutiny of capital soundness is warranted.

Ultimately, the key points to watch going forward come down to two questions: whether the Hyungji Esquire consolidation effect continues beyond the third quarter, and whether the company can restore compliance with the managed-stock exit criteria for 45 consecutive trading days within the 90-trading-day window.

Sources

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

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Report written 2026-09-30 · Data as of 2026-09-29

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.