[Edaily Reporter Shin Ha-yeon ] On the 25th, NH INVESTMENT & SECURITIES projected that #F&F would continue its solid earnings momentum in the second half of the year, driven by a recovery in Chinese consumption and an increase in foreign tourists, and maintained its “Buy” investment rating and target price of 100,000 won.

Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated, “Second-quarter earnings are expected to slightly exceed consensus estimates,” adding, “Sales at stores in major MLB tourist districts and department store channels are performing well due to the inbound tourism effect, and local sales in China are also better than expected, further strengthening the company’s profit resilience even during the off-season.”

In particular, he viewed the increase in foreign tourists and the recovery of Chinese consumption as key drivers of earnings improvement. Analyst Jeong explained, “As of May 2026, South Korea’s cumulative exports of fashion items to China had increased by 33% year-over-year,” adding, “Interest in and popularity of K-fashion within China are on an upward trend, and the share of actual overseas sales continues to rise due to the increase in foreign tourists and the improvement in Chinese purchasing power.” He added, “The nationalities of consumers are also diversifying, expanding from the Greater China region to Southeast Asia, Japan, and Western markets.”

He also assessed the exchange rate as a favorable factor. “As of the second quarter, the average exchange rate stands at 220 won per yuan, a 12% increase year-over-year, which is having a positive impact on performance,” he said. “In the medium term, investment returns as an LP (limited partner) in TaylorMade and Sooksook Company will also support the enhancement of corporate value.”

On a consolidated basis, second-quarter revenue is projected to reach 4150억 won, a 10% increase year-over-year, while operating profit is expected to rise 20% to 1004억 won, slightly exceeding market consensus.

In the domestic market, sales of MLB’s domestic products and kids’ brands are performing well, and with the increase in foreign tourists, the revenue share from MLB flagship stores and stores in major tourist districts is expected to expand to the mid-10% range. Additionally, domestic profitability is projected to improve due to an increase in full-price sales and store efficiency.

The company’s business in China is also expected to maintain a steady momentum. Analyst Jeong noted, “Growth in China’s apparel retail sales was solid in the first half of the year, and we assess that inventory was cleared smoothly despite a large volume of pre-shipments in the accessories category during the first quarter.” He added, “During the 6·18 shopping festival, MLB ranked 18th in the sports category, demonstrating the brand’s competitiveness.”

He also noted that valuation concerns are minimal. Analyst Jeong emphasized, “The current stock price is only 5.6 times the price-to-earnings ratio (PER) based on 2026 earnings estimates, making it a valid opportunity for bargain hunting.”