[Asia Economy Reporter Hyungsoo Park] Easywell, which operates a welfare points shopping mall, is showing strong performance. The expectation of a sale appears to be influencing the stock price.
At 11:50 AM on the 18th, Easywell was trading at 8,880 KRW, up 16.69% from the previous day.
On this day, an economic media outlet reported that the sale process of Easywell is underway with Samil PwC as the sale lead manager. The largest shareholder of Easywell is Kim Sang-yong, chairman of the Easywell board, holding a 20.72% stake.
Easywell, a welfare service specialist company, was established in 2003 and listed on the KOSDAQ in December 2013. It mainly provides selective welfare system consignment operation services to corporations and public institutions. As of the end of the first half of this year, it holds about 50% market share, maintaining the industry’s number one position ahead of SK M&S (Benefia), e-Genedu, and others. The selective welfare business conducted by Easywell has a structure that makes it difficult for new entrants due to important factors such as initial system investment costs and operational know-how.
In the first half of the year, it recorded sales of 46.5 billion KRW and operating profit of 8.7 billion KRW, increasing by 18% and 43% respectively compared to the same period last year. With the spread of smartphones and untact culture, performance is improving, and the local currency business is likely to become a new growth engine. The government announced plans to expand the issuance scale of local currency to 15 trillion KRW next year.
On the 31st of last month, Easywell signed a business agreement with Daejeon Metropolitan City for the operation of an online local mall. Easywell will source products from Daejeon area businesses and build and operate the online mall. The online mall is planned to open in mid-September under the name "Ontong Daejeon." Only the amount reflecting the commission rate from the payment amount made in the online mall will be recognized as sales. The commission rate is expected to be around 8%. Easywell also signed a strategic business agreement with KT, which operates local currencies in seven local governments, for online local mall services.
Lee Jun-yong, a researcher at Samsung Securities, explained, "Among the six metropolitan cities, we have already secured contracts for three, which is half," adding, "The opening is scheduled before the Chuseok peak season, so quick sales generation is expected."
He continued, "If the online mall opens as planned and actual sales occur, it will be a momentum for valuation increase."
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