[Click eStock] "Danawa Expected to Benefit from Online School Opening"

Ebest Investment & Securities Issues 'Buy' Rating and Sets Target Price at 30,000 Won... Closing Price on 1st at 23,100 Won

[Asia Economy Reporter Kum Boryeong] There is a forecast that Danawa could benefit from the online school opening.

According to Ebest Investment & Securities on the 2nd, Danawa operates an online price comparison business focused on PCs (accounting for 35~40%) and home appliances, so it is expected to benefit from the Ministry of Education's online school opening plan.

The Ministry of Education announced a phased online school opening plan for elementary, middle, and high schools on the 31st of last month to prevent the spread of the novel coronavirus infection (COVID-19). Researcher Jeong Hongsik of Ebest Investment & Securities analyzed, "The practical issue is that a considerable number of households do not own smart devices (PCs, laptops, tablets, smartphones). The household ownership rate of PCs and laptops is about 71.1%. Also, multi-child families could face problems because each child needs to have a smart device to attend online classes."

Accordingly, sales of laptops, PCs, and learning-related items are expected to increase on Danawa's affiliate shopping platform. It is analyzed that sales of low-priced home PCs will increase in terms of sales commissions. It has already been identified that sales amounts in affiliate shopping and sales commission sectors improved last month compared to February.

Even excluding the online school opening issue, Danawa is expected to continue its growth trend until the second quarter of this year. Researcher Jeong said, "Growth is possible in the first and second quarters of this year due to increased online shopping," and explained, "The estimated decrease in consolidated sales this year is due to the sale of Wolf and Fox Computer and is not meaningful."

Ebest Investment & Securities gave Danawa a 'Buy' investment opinion with a target price of 30,000 KRW. The closing price on the 1st was 23,100 KRW.