[Click eStock] "F&F, Stops Earnings Decline and Highlights Overseas Expansion"

Daishin Securities forecasted that F&F's domestic market will remain sluggish in 2025, but the Chinese market will gradually recover. The investment rating of Buy and the target price of 92,000 KRW were maintained.

Yoo Jung-hyun, a researcher at Daishin Securities, explained, "China is expected to move away from last year's sharp decline in growth and experience a gradual recovery," adding, "This is due to the anticipated effects of the MLB brand renewal and the active store openings of Discovery."

However, Yoo said, "F&F's domestic segment is unlikely to grow in 2025," adding, "This is not only due to economic downturn factors but also because the main brands have entered a mature phase."

Yoo explained that the recent stock price increase reflects expectations for overseas expansion strategies. He said, "The recent stock price has risen more than 30% over two months due to expectations of economic stimulus effects from the Chinese government," adding, "Although last year's earnings continued to be revised downward, which prevented undervaluation appeal from emerging, in 2025, the downward revision of earnings is expected to stop, and valuation is recovering due to expectations of overseas expansion."