[Special Stock] F&F Hits 52-Week Low... Plummets Relentlessly Due to Poor Earnings and More

Market Cap Falls Below 2 Trillion Won in Sight
2Q Operating Profit Down 16.6%
Brand Strength Weakening and China Concerns Remain Unresolved

F&F's stock price is plummeting relentlessly. It has broken its 52-week low for two consecutive days. The decline in domestic segment performance and the lack of growth momentum are interpreted as factors contributing to the weak stock price.

As of the 30th, F&F is trading at 57,200 KRW, down 3.05% (1,800 KRW) from the previous day. During the previous trading day, the stock price fell to 57,400 KRW, breaking the 52-week low of 57,700 KRW set on the 10th. On this day, the downward trend continued, marking a new 52-week low. The market capitalization is currently 2.1835 trillion KRW, with the possibility of falling below 2 trillion becoming more visible.

Hyung Kwon-hoon, a researcher at SK Securities, said, "The operating profit for the second quarter fell short of market consensus (average forecast)." He added, "Valuation is at a historic low even based on pre-split standards, and the biggest reasons are the decline in domestic segment performance and the absence of sustainable growth momentum." He expects some improvement in performance in the second half of the year as the domestic consumption weakness eases compared to the first half, but recommends a conservative approach until concerns about brand weakening and declining growth rates in China are resolved.

On the 26th, F&F announced that its consolidated operating profit for the second quarter of this year was preliminarily estimated at 91.8 billion KRW, a 16.6% decrease compared to the same period last year. Sales amounted to 391.5 billion KRW, down 3.5% year-on-year, and net profit was 74.5 billion KRW, down 14.7%. Despite recent news of acquiring exclusive license rights for the Discovery brand in 11 countries including China, Japan, and Taiwan, the stock price has not recovered from its slump.