[Click eStock] "Danawa, Stock Price Near 52-Week Low... Price Attractiveness Highlighted"

[Asia Economy Reporter Ji-hwan Park] Ebest Investment & Securities evaluated on the 17th that Danawa's current stock price is at a 52-week low level, making it appear to have high price merit.

Danawa announced on the 26th of last month that it had signed a stock transfer agreement involving a change of the largest shareholder, changing the largest shareholder to Korea Center. Korea Center acquired 51.3% of Danawa's shares for 397.9 billion KRW. The price per share was 59,331 KRW, which is about 2.3 times the current stock price.

Jung Hong-sik, a researcher at Ebest Investment & Securities, said, "As of the end of the third quarter, we need to see how the net cash of 102 billion KRW held by Danawa will be used for growth," adding, "In the past, despite stable cash flow and continuous cash increase due to Danawa's business structure, there was no special use of cash except for dividends." However, he said, "It is highly likely that it will be used for mergers and acquisitions (M&A) in related industries for growth."

Researcher Jung emphasized, "We need to see how the online platform competitiveness based on continuous traffic increase is strengthened," and added, "The important point is that there seems to be changes for growth after next year, and the current stock price is at a 52-week low level, making it a situation with high price merit."