F&F: A Key Beneficiary of Explosive Popularity of Jung Hoo Lee (Grandson of the Wind) In the MLB

• F&F is one of the key beneficiaries of the exploding popularity of Jung Hoo Lee in the MLB (Major League Baseball).

• The surging popularity of Jung Hoo Lee could lead to higher demand for F&F's core products (MLB baseball caps and apparel products), which could lead to higher sales and profits.

• F&F recently provided new shareholder return plans including providing at least 25% of net profit as dividends/buybacks/cancellations (including buyback at least 60 billion won from 2025 to 2027).

F&F Co (383220 KS) is a leading apparel company in Korea, best known for their MLB caps. It has a market cap of 2.6 trillion won ($1.9 billion). It is trading at 4.7x EV/EBITDA, 7.1x P/E, and 1.4x P/B based on 2025 consensus earnings estimates.

F&F is one of the key beneficiaries of the exploding popularity of Jung Hoo Lee in the MLB (Major League Baseball) in the United States. F&F could also benefit from a opening up of Korean culture (Hallyu) in China.

The surging popularity of Jung Hoo Lee in Korea and in the United States could lead to higher demand for F&F's core products (MLB baseball caps and apparel products), which could lead to higher sales and profits for the company and even higher valuation multiples.

Jung Hoo Lee of San Francisco Giants baseball team (Source: Google images)

Emergence of Jung Hoo Lee (Source: MLB, Youtube)

F&F Company Background

Established in 1972, F&F is a leading apparel company in Korea. F&F Co does not manufacture its own apparel but rather relies on outsourcing 100%. The company deals with hundreds of OEM apparel providers that have manufacturing facilities in Korea, Vietnam, Indonesia, and China. F&F Co was spun off from F&F Holdings on 3 May 2021. F&F Co was relisted as a public company on 21 May 2021.

For both Discovery and MLB brands, the company pays a certain amount of royalty to the Discovery Channel (Canada) and MLB Association (US), which are kept secret by the company. The company's core brands include MLB, MLB Kids, and Discovery Expedition. It also operates other brands including Banila. The most popular products of F&F include MLB caps and Discovery down jackets (including long padded coats).

• MLB - MLB mainly sells Major League Baseball (MLB) logo imprinted caps such as NY Yankees, LA Dodgers or SF Giants. In addition to caps, there are other MLB branded shoes, and athletic apparel products sold by the company. F&F succeeded in winning the rights to sell MLB products in China in 2019. Since then, the company's MLB and MLB Kids brands have been a huge success in China with more than 1,100 stores (as of end of 2023).

• MLB Kids - MLB Kids extends this offering to the children's segment, providing stylish and comfortable clothing for younger consumers.

• Discovery Expedition - This brand focuses on outdoor and adventure apparel, targeting consumers with an active lifestyle. Discovery Expedition combines functionality with fashion, offering products suitable for various outdoor activities. F&F started to launch Discovery stores in China in 2024. It had about 50 Discovery stores in China at the end of 2024 and it plans to increase this number to about 100 by end of 2025.

• Duvetica - This is a premium lifestyle brand for women established in Italy in 2004 and first launched in Korea in 2019. Duvetica uses only the highest quality materials to provide a high-quality style.

• Supra - This is a premium street lifestyle brand born from the skate culture of California, USA.

• Banila Co - Established in 2005, Banila Co. is F&F's cosmetics brand, specializing in skincare products. The brand is known for its "Clean It Zero" cleansing balm and a range of products free from harmful additives.

Source: Company data