AU Brands is a fashion-brand company that plans, manufactures, and sells footwear, apparel, and hats through wholesale and retail, with its core being 'Rockfish Weatherwear,' a UK-derived rain-boot and sneaker brand, and a consolidated structure spanning subsidiaries in Korea, China, Japan, and the UK. In 2025, almost all of its revenue growth came from overseas — Korea ₩41.7 billion (about 69%), China ₩9.0 billion, and others — and in May the company itself issued a 2026 consolidated revenue outlook of ₩120.0 billion, confirming on the same day that Q1 net profit had risen 363% year on year. What stands out most recently is that overseas growth is converting into profit, backed by a roughly doubled-revenue guidance and an increased stake by the largest shareholder — a strength that has to be balanced against whether margins recover after the operating margin was compressed from 16.8% to 10.9% in Q1, and against the fourth-quarter seasonality.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 34.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 136.1% higher than a year earlier.
- ROE is 12.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 16.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder AU Commerce 59.05% (corporate)
Controlling bloc incl. related parties 61.03%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- AU Brands is a fashion-brand company that plans, manufactures, and sells footwear, apparel, and hats through wholesale and retail.
- It was established in 2022 through a spin-off of the brand division from AU Commerce, and its core brand is 'Rockfish Weatherwear,' a UK-derived label centered on rain boots, sneakers, and winter footwear.
- In 2023 it acquired the UK company Zennar, securing trademark rights across a number of countries beyond Korea, and it runs a consolidated structure holding footwear manufacturing and wholesale subsidiaries in Korea, the UK, Japan, and China, plus a shirt maker (Goyo Wear) and a cosmetics firm (The Mavens).
- In 2025, revenue by region broke down into Korea ₩41.7 billion (about 69%), China ₩9.0 billion (about 15%), Japan ₩3.3 billion, and the UK and others — with nearly all of the recent revenue growth coming from overseas, especially online channels such as China's Tmall.
- The latest close is ₩15,010 and the market cap is ₩215.1 billion.
- The price sits above its 20-day line (₩13,817) and below its 60-day line (₩15,282).
- With the short- and mid-term trends diverging, the direction has to be read separately.
- The RSI (a gauge comparing upward and downward momentum over the past 14 days on a 0-100 scale) is 56.0, a neutral level.
- The one-month change is +21.5%, the three-month change is -14.2%, and the price is -45.2% from its 52-week high.
- Relative strength versus the KOSDAQ is 65 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market), placing it in roughly the top 35% for strength among all stocks.
- Over the past three months it has outpaced the index by 24.5%.
- Chart signals are best read alongside trading volume and disclosure dates.
- Based on 2025 reported earnings, the P/E (how many times one year of earnings the price represents) is 25.41x and the P/B (how many times book equity the price represents) is 3.14x.
- But this P/E is a trailing figure computed from last year's earnings, when profit had fallen, so it does not fully show the company as it is now, with profit rising fast.
- The forward P/E reflecting this year's higher earnings comes out well below the trailing figure.
- In other words, at the same share price the valuation burden lightens quickly as earnings grow.
- On profitability, an ROE (annual return on equity) of 12.3% and an operating margin of 16.8% are above the peer average; the debt ratio (debt to equity) of 148% includes lease liabilities from store rentals, while a current ratio of 430% and an interest-coverage ratio of 10.8x leave ample short-term liquidity and interest cover.
- As there is no dividend, there is no separate dividend appeal.
- Revenue rose from ₩41.9 billion in 2023 to ₩44.6 billion in 2024 and ₩60.0 billion in 2025, a 34.5% year-on-year gain in 2025 with the pace steadily quickening (a two-year average of about 20%).
- In 2025, operating profit (-18.9%) and net profit (-16.1%) fell temporarily on early-stage overseas-expansion costs, but in Q1 2026 earnings pushed past that cost burden and revived in earnest.
- Q1 revenue of ₩18.5 billion (+136% YoY), operating profit of ₩2.0 billion (+154%), and net profit of ₩3.4 billion (+363%) form a textbook inflection signal, with profit rising faster than revenue.
- The reason this year's forward earnings are set well above last year's is not simply an extension of Q1, but rests on real grounds — expanding overseas demand (China and Japan), the company's own revenue guidance, and the already-confirmed Q1 profit surge.
- As a result the forward P/E is markedly lower than the trailing figure, and it is not an unreasonable level even against high-growth peers.
- That said, the Q1 operating margin (10.9%) was below the 2025 full-year figure (16.8%), so how far margins recover as the top line grows is a point to check quarter by quarter.
- The most important disclosures were two items on May 13, 2026.
- First, the company issued through fair disclosure a '2026 consolidated revenue outlook of ₩120.0 billion' (operating- and net-profit targets were not given).
- At roughly double the prior year's ₩60.0 billion, it signals the company's confidence in overseas expansion.
- Second, on the same day a fair-disclosure of preliminary Q1 results confirmed net profit up 363% year on year, and the May 15 quarterly report formally reflected that figure.
- The largest shareholder also modestly increased its stake on the open market in April, holding about 61.4%; an insider adding to its stake during a price pullback reads as a signal that the controlling shareholder views corporate value favorably.
- Separately, because winter footwear and rain boots weigh heavily, results are concentrated in the fourth quarter, so quarterly figures are most accurately compared like season with like season.
- Starting with the strengths: the company is clearly breaking through domestic stagnation with overseas growth (China and Japan), and that growth began converting into profit in Q1.
- A roughly doubled-revenue guidance, the largest shareholder's open-market stake increase, and ample liquidity support that direction.
- On valuation too, while the trailing P/E looks high, the forward P/E reflecting this year's earnings comes down, so given the high growth it is hard to call the price excessive.
- Two points to watch: first, that the operating margin was compressed from 16.8% to 10.9% in Q1 during overseas expansion, so it needs confirming whether margins keep pace with top-line growth; and second, the seasonality skewed to the fourth quarter, plus exposure to exchange rates and local channels.
- In sum, if overseas growth and margin recovery play out as guided, the lowered forward valuation gains further support, while if margin recovery lags or overseas momentum cools, that expectation is put to the test.
🔎 Valuation vs peers Inconclusive
Compared, on a business-substance basis, with listed companies that plan and sell footwear and fashion brands directly or that manufacture and distribute footwear.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Misto Holdings | 12.40x | 1.44x | 11.61% |
| JS Corporation | 4.45x | 0.65x | 14.52% |
| Hwaseung Enterprise | — | 0.40x | -6.26% |
| F&F Holdings | 4.64x | 0.25x | 5.44% |
Whereas footwear and fashion-brand peers trade at P/Es of 5-9x and P/Bs of 0.3-1.1x, AU Brands trades at a P/E of 24x and a P/B of 3x — a clear premium. But this P/E is a trailing figure computed from last year's reported earnings, and with earnings having just passed an inflection point (Q1 net profit +363%), it overstates the company's real burden. On a forward basis reflecting this year's expected earnings, the multiple falls considerably, grounded in the revenue guidance the company issued through fair disclosure and the Q1 results trend. That said, even with a high growth rate, the compressed operating margin (16.8% to 10.9%) and large quarterly swings from the fourth-quarter-skewed seasonality make it hard to call outright cheap or expensive. If growth and margin recovery are confirmed as guided, the premium is justified; if not, it becomes a discount factor.
Price history Close · MA20 · MA60
The latest close is ₩15,010 and the market capitalization is ₩215.1 billion. The price sits above its 20-day moving average (₩13,817) and below its 60-day moving average (₩15,282). 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 56.0, a neutral level. The one-month change is +21.5%, the three-month change is -14.2%, and the position relative to the 52-week high is -45.2%. Relative strength versus the KOSDAQ is 65 (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 65% of all stocks. Over the past three months it outpaced the index by 24.5%. 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 +24.49% / 6M -14.55% / 12M -23.72%
Key metrics vs sector median
Valuation
The P/E of 25.41x is above the sector median (16.77x). The P/B of 3.14x is above the sector median (0.56x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.3%, above the sector average (3.0%). The operating margin is 16.8%. The debt ratio is 148.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $27.8M | $29.6M | $39.8M | +34.55% ↑ faster |
| Operating profit | $10.7M | $8.2M | $6.7M | -18.89% ↑ faster |
| Net profit | $8.6M | $6.7M | $5.6M | -16.09% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $27.8M | $29.6M | $39.8M |
| Operating profit | — | — | $10.7M | $8.2M | $6.7M |
| Net profit | — | — | $8.6M | $6.7M | $5.6M |
| Revenue CAGR | 2-yr avg 19.69% | ||||
Revenue rose 34.5% year over year (2023 ₩41.9 billion → 2024 ₩44.6 billion → 2025 ₩60.0 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 18.9% year over year. That said, the decline narrowed. Over the 3 years on record, revenue compound annual growth (CAGR) is 19.7%. The two-year revenue CAGR is 19.7%. In the most recent quarter (Q1 2026), revenue was 136.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 12.3% points to solid profitability.
- Revenue grew 34.5% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13FilingThrough fair disclosure, the company issued a 2026 consolidated revenue outlook of ₩120.0 billion (about double the prior year). Operating- and net-profit targets were not stated.It formalizes the intent to double the top line — strengthening medium-term growth expectations, though with no profit target, margins need separate confirmation. Source
- 2026-05-13EarningsFair disclosure of preliminary Q1 2026 results: revenue of ₩18.5 billion (+136% YoY), operating profit of ₩2.0 billion (+154%), net profit of ₩3.4 billion (+363%).Overseas revenue expansion has begun converting into profit — strengthening near-term momentum. Note, however, a seasonal decline versus the prior (fourth) quarter. Source
- 2026-04-06FilingThe largest shareholder modestly increased its stake on the open market, maintaining about 61.4% ownership (large-holding report).An insider adding to its stake during a price pullback suggests the controlling shareholder's perception of corporate value is favorable. Source
- 2026-05-15FilingQ1 2026 quarterly report filed (confirming consolidated cumulative revenue of ₩18.5 billion and net profit of ₩3.4 billion).The formal report reflects the preliminary results — allowing confirmation of no major change versus the preliminary figures ahead of the external-audit review. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Fair-disclosure notice
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-12OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-06OwnershipOwnership-change filing
- 2026-04-06OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-13Disclosure
- 2026-03-13Shareholders' meeting notice
📖 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.