Handsome designs and produces its own premium fashion brands such as Time, Mine, System and SJSJ in-house and sells them through department stores and its own online mall, The Handsome dot com. It has both the sales channels of the Hyundai Department Store Group and the pricing power of its own brands. Consolidated 2025 revenue of about ₩1.4918 trillion and operating profit of ₩52.2 billion had been sluggish, but in the first quarter of 2026 revenue reached ₩410.4 billion and operating profit ₩36.5 billion (+67.7%), a sharp rise in earnings that turned around for the first time in three years. What stands out lately is that while consumption recovers and full-price selling continues, earnings rebound quickly on the back of low debt and a thick equity base; conversely, given the nature of the fashion sector, where fixed-cost burdens grow when apparel spending freezes again, the pace of recovery could slow.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 0.4% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.9% higher than a year earlier.
- ROE is 3.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.5%.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Home Shopping 40.5% (corporate)
Controlling bloc incl. related parties 40.5%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Handsome designs and produces its own premium fashion brands in-house and sells them.
- The core is its own brands.
- It directly makes high-priced brands such as the women's lines Time, Mine and SJSJ and the unisex casual lines System and System Homme, and sells them at department-store outlets and through its own online mall, The Handsome dot com.
- On top of this sits a business importing overseas brands and distributing them in Korea.
- The own brands carry high margins, while imported brands serve to scale up revenue.
- As a Hyundai Department Store Group affiliate, it secures stable placement in group department stores, and because they are its own brands, it has the power to set prices itself, which underpins the business.
- Consolidated 2025 revenue was about ₩1.4918 trillion and operating profit was ₩52.2 billion.
- The current price is ₩22,450 and the market cap is about ₩482.2 billion.
- It sits about 20% below its 52-week high.
- The six-month return is +44.8%, a sharp rise as expectations of an earnings recovery were priced in.
- That said, the past month is -1.1%, a catch-your-breath move.
- The price straddles above the 20-day moving average (₩21,780) and below the 60-day line (₩23,632), so the short-term direction is unclear.
- RSI (a gauge scaling the balance of up-force and down-force from 0 to 100) is around 50, neutral.
- P/B (how many times the company's net assets the price represents) is 0.34x.
- That means the market cap is about one-third of book shareholders' equity (about ₩1.4371 trillion), a clearly undervalued spot on an asset basis.
- The P/E ratio (how many times one year's earnings the price represents) is 10.4x, but this figure is computed on 2025 results, when earnings were at a trough, so it looks more expensive than it is.
- Measured against this year, reflecting the turn in earnings, the P/E falls further.
- ROE (how much is earned on equity in a year) is still low at 3.2%, but it is in a phase of rising as earnings recover.
- The balance sheet is solid.
- The current ratio (short-term paying ability) is 3.27x, and the interest-coverage ratio (how many times operating profit covers interest) is 17x, both with ample room.
- EV/EBITDA (an earnings multiple that also reflects debt and cash) is low at 4.3x, and net debt is about ₩49.2 billion, not large.
- The dividend yield is a steady 3.3%.
- The past three years were sluggish.
- Operating profit fell steadily from ₩168.3 billion in 2022 to ₩100.5 billion in 2023, ₩63.5 billion in 2024 and ₩52.2 billion in 2025, the result of apparel spending contracting under high inflation and rising promotion and cost burdens.
- Revenue stagnated around ₩1.5 trillion.
- But the trend shifted in 2026.
- First-quarter operating profit was ₩36.5 billion, up 67.7% from a year earlier.
- Net profit also rose 49% to ₩27.3 billion.
- With a higher share of full-price selling and stabilized costs, the operating margin jumped to 8.9%.
- It is a phase where a structure appears in which even a small rise in revenue adds substantially to profit (operating leverage).
- Overseas expansion of the own brands is also under way.
- This year is a year of turning back to profit growth after profit had been declining.
- The most important signal is the first-quarter 2026 results.
- In the preliminary results the company disclosed via fair disclosure, operating profit jumped sharply, confirming the earnings recovery.
- On the same day the company disclosed the implementation status of its corporate value-up plan: to achieve ROE of 6% and a cumulative shareholder-return ratio of 35% through 2027, to buy back and cancel shares worth ₩22.0 billion over four years, and to raise the dividend funding pool from 10% of separate operating profit to 15% or more.
- It also held a regular IR event to explain its brand strategy and overseas plans.
- The key is whether earnings and shareholder returns are actually executed as planned.
- Handsome is a company in a phase where earnings have bottomed and are turning up.
- The conditions for strength are clear.
- When consumer sentiment recovers and full-price selling increases, profit accrues quickly thanks to the high-margin own brands.
- Operating profit rising 67.7% in the first quarter, breaking a three-year decline, is the evidence.
- A solid balance sheet gives it staying power too.
- At a P/B of 0.34x it trades far below net assets, backed by a 3.3% dividend and a plan to expand shareholder returns.
- On a forward basis that reflects the earnings recovery, the current valuation is on the low side.
- There are also points to watch.
- Fashion is sensitive to the consumer cycle.
- If apparel spending freezes again, fixed-cost burdens grow and the pace of earnings recovery can slow.
- With the revenue top line stagnant for a fifth year, it also bears noting that the earnings recovery comes from margin improvement rather than growth.
- Loss management in the overseas business and actual execution of the shareholder-return plan are also things to watch.
🔎 Valuation vs peers Undervalued
Compared against listed Korean apparel companies with their own brands whose business character is close (P/E, P/B and ROE are the site's own computed values at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LF | 6.64x | 0.40x | 610.00% |
| Misto Holdings | 12.40x | 1.44x | 1160.00% |
| Hansae | 6.29x | 0.49x | 780.00% |
Within the peer group, the positioning varies by metric. A P/B of 0.34x is below LF (0.40), Hansae (0.49) and Misto Holdings (1.44), the cheapest spot relative to net assets. A 3.3% dividend yield also provides support. By contrast, the confirmed annual P/E of 10.4x looks higher than peers, not because it is expensive but because 2025 earnings were at a trough. First-quarter 2026 operating profit rose 67.7% as earnings turned around, and on a forward basis reflecting this recovery the valuation comes down to a level similar to or even below LF and Hansae. Seen together with a solid balance sheet, recovering earnings and a stated plan to increase shareholder returns, we judge the current valuation to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩22,450 and the market capitalization is ₩482.2 billion. The price sits above its 20-day moving average (₩21,780) and below its 60-day moving average (₩23,632). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is -1.1%, the three-month change is +0.4%, and the position relative to the 52-week high is -19.7%. Relative strength versus the KOSPI is 51 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 51% of all stocks. Over the past three months it lagged the index by 19.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -19.65% / 6M -9.23% / 12M -43.99%
Key metrics vs sector median
Valuation
The P/E of 10.43x is above the sector median (7.55x). The P/B of 0.34x is in line with the sector median (0.39x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 3.2%, below the sector average (5.0%). The operating margin is 3.5%. The debt ratio is 120.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.0B | $984.4M | $988.7M | +0.44% ↑ faster |
| Operating profit | $66.6M | $42.1M | $34.6M | -17.79% ↑ faster |
| Net profit | $55.6M | $29.6M | $30.6M | +3.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $919.5M | $1.0B | $1.0B | $984.4M | $988.7M |
| Operating profit | $100.9M | $111.6M | $66.6M | $42.1M | $34.6M |
| Net profit | $75.9M | $81.5M | $55.6M | $29.6M | $30.6M |
| Revenue CAGR | 4-yr avg 1.83% | ||||
Revenue rose 0.4% year over year (2023 ₩1.5 trillion → 2024 ₩1.5 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 17.8% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.8%. The two-year revenue CAGR is -1.2%. In the most recent quarter (Q1 2026), revenue was 7.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-07EarningsFirst-quarter 2026 consolidated operating (preliminary) results, fair disclosure: revenue ₩410.4 billion (+7.9%), operating profit ₩36.5 billion (+67.7%), net profit ₩27.3 billion (+49%). Operating margin of 8.9% on a higher full-price selling rate and stabilized costs.Confirms an earnings recovery breaking out of a three-year slump. Operating leverage appears, providing the basis for forward earnings expectations. Source
- 2026-05-07FilingCorporate value-up plan (voluntary disclosure) implementation status: targets ROE of 6% and a cumulative shareholder-return ratio of 35% through 2027, buyback and cancellation of shares worth ₩22.0 billion over four years, and raising the dividend funding pool to 15% or more of separate operating profit.Sets out a medium-term shareholder-return direction. If executed alongside an actual earnings recovery, it could be a catalyst for closing the undervaluation. Source
- 2026-05-15FilingFirst-quarter 2026 quarterly report filed: first-quarter confirmed results disclosed.As the official material confirming the preliminary results in final figures, it serves as a reference for checking the durability of the earnings recovery. Source
- 2026-05-13IRNotice disclosure of an IR event: explains first-quarter results, brand strategy and overseas plans to investors.A venue, amid an earnings recovery, to confirm the company's business direction and shareholder communication. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩36.5 billion(+67.7% yoy) | ₩36.5 billion | Confirmed | link |
| 2025 annual operating profit | ₩52.2 billion | ₩52.2 billion | Confirmed | link |
| 2025 net profit | ₩46.2 billion | ₩46.2 billion | Confirmed | link |
| 2026 net profit (own estimate) | approx. ₩76.0 billion | — | Unverified | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30EarningsEarnings disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-13PeriodicAnnual business report
- 2026-03-13Audit report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.