[Click eStock] "Dongwon Industries, Q3 Earnings Exceed Expectations"

Daishin Securities Issues 'Buy' Investment Rating and Sets Target Price at 280,000 KRW... Closing Price on 3rd at 208,500 KRW

[Asia Economy Reporter Kum Boryeong] Dongwon Industries' third-quarter performance exceeded expectations.

According to Daishin Securities on the 4th, Dongwon Industries' consolidated sales for the third quarter amounted to 734.1 billion KRW, and operating profit was 93.4 billion KRW. These figures represent increases of 5% and 60% respectively compared to the previous year. The operating profit significantly surpassed the consensus estimate of 80.1 billion KRW.

In the fisheries sector, the catch volume in the third quarter was found to have decreased by 11% compared to the same period last year, but the average price per ton rose by 21% to 1,383 USD. As a result, sales increased by 3% year-on-year, and operating profit is estimated to have turned positive with an increase of 14.3 billion KRW.

Han Yujeong, a researcher at Daishin Securities, analyzed, "In the distribution sector, the prolonged impact of COVID-19 in the United States reduced the increase in stockpiling demand compared to the first half, leading to a 7% year-on-year growth in sales, which is considered normalized. However, due to still robust in-home dining demand, sales-related expenses were significantly reduced, resulting in an estimated 49% increase in operating profit."

Daishin Securities gave Dongwon Industries a 'Buy' rating with a target price of 280,000 KRW. The closing price on the 3rd was 208,500 KRW. Researcher Han explained, "The strong market dominance expansion of Starkist, a U.S. seafood processed products manufacturing and sales corporation, is expected. Regarding the fisheries industry sector, the introduction of new vessels and efficient operations are judged to likely result in favorable catches compared to the fishing environment, so profit fluctuations are expected to be minimal compared to the past."