Hojeon호전실업

Hojeon's trailing earnings have fallen and the shares are down sharply over the past year, though its valuation multiples are low.

Hojeon is a Korean apparel maker that produces sportswear and outerwear on contract for global brands, mainly through its production subsidiaries in Indonesia and Vietnam. Over the trailing twelve months to H1 2026 it reported revenue of ₩501B, operating income of ₩23B and net income of ₩20B, with borrowings of ₩219B against cash of ₩40B. The share price closed at ₩6,240, about 24% lower over one year and near its 52-week low of ₩6,100.

What stands out

• Revenue grew 12.3% in 2025 to ₩521B, but operating income fell from ₩29.5B in 2024 to ₩25.0B and net income from ₩23.5B to ₩12.5B.
• Trailing operating margin is 4.6%, down from 8.5% in 2022, and free cash flow is negative at about -₩8.1B.
• Liabilities are 177% of equity, and the data shows borrowings well above cash.
• Reported multiples are low: P/E of 2.9, P/B of 0.3 and a dividend yield of 6.4%, while the company's own DCF base value is ₩63,395, far above the current price.
• Foreign ownership slipped from 2.1% to 2.0% over 60 days, and 20-day flows were net negative for foreign and institutional investors.

What to watch

• The Q3 2026 quarterly report and any further change in operating margin or free cash flow.
• Debt-guarantee decisions for other parties, which were disclosed in March and May 2026, and the company's overall debt level.
• The outcome of the July 2026 decision on early acquisition of its own convertible bonds, and the 5%+ holding report filed in September 2026.