[Edaily Reporter Kim Kyung-eun ] HandsomeCorporation(020000)is trading lower in early trading on the 4th after reporting an “earnings shock” in the second quarter.

According to MP Doctor, as of 9:30 a.m. today, HandsomeCorporation is trading at 16,190 won, down 1,270 won (7.27%) from the previous trading day. This is interpreted as a result of sell-offs triggered by the company’s second-quarter earnings falling short of market expectations.

HandsomeCorporation announced yesterday that its second-quarter consolidated operating profit was 4.6 billion won, a 525.0% increase year-over-year. Preliminary figures for the same period showed revenue up 7.4% to 363.2 billion won and net income up 34.7% to 3.3 billion won. While revenue met the consensus (market forecast), operating profit fell significantly short of the consensus (11.5 billion won) by about 60%.

Lee Hye-in, an analyst at SamsungSecurities, explained, “The reason for falling short of the consensus was that the gross profit margin declined year-over-year as the company more aggressively cleared out inventory from previous years—which was originally scheduled for sale in the second half—during this quarter.”

Reflecting this, securities firms have been lowering their target prices for HandsomeCorporation one after another. In a report released today, NH INVESTMENT & SECURITIES lowered its target price for HandsomeCorporation from 34,000 won to 25,000 won. HEUNGKUK METALTECH CO.,LTD. also lowered its target price from 33,000 won to 27,000 won. HANWHA INVESTMENT & SECURITIES lowered its target price from 37,000 won to 28,000 won, and DaishinSecurities lowered its target price from 39,000 won to 30,000 won.

Yoo Jeong-hyun, an analyst at DaishinSecurities, stated, “The target price reduction is due to downward revisions to earnings forecasts for 2026–2027,” adding, “Given the increased volatility in the stock market, the growth rate of domestic apparel consumption in the third quarter is expected to slow to the 4–6% range, so the stock price is likely to trade sideways for the time being.” However, he added, “Stock market volatility is expected to ease as we approach the end of the year,” noting, “Considering factors such as the impact of performance-based bonuses, a buy strategy remains valid from a medium- to long-term perspective.”