[Click eStock] "Dongwon Industries, Shareholder Returns and Stable Performance... Stock Price Rise Expected"

Heungkuk Securities Report

Heungkuk Securities maintained a buy rating and a target price of 68,000 KRW for Dongwon Industries on the 19th, expecting solid performance this year.

Dongwon Industries' annual consolidated sales are expected to reach 9.6 trillion KRW, with an operating profit of 517.5 billion KRW. These figures represent increases of 6.7% and 4.9%, respectively, compared to the same period last year. The fisheries segment is anticipated to improve profitability due to increased catch volume, rising fish prices, and sales of strategic species. The food processing and distribution businesses are expected to benefit from the strong performance of Dongwon F&B and Starkist. The packaging segment is projected to see profitability improvements through cost reductions in existing businesses and expansion into functional and non-food product areas.

Jongryul Park, a researcher at Heungkuk Securities, explained, “Based on stable cash generation from core sectors such as fisheries, food processing and distribution, and packaging, the company is actively investing in future growth businesses. Despite the global economic downturn, the diverse business portfolio is expected to maintain solid performance momentum, which is a positive factor.”

The company is expected to enhance corporate value through new business initiatives and shareholder returns. Starting with a 7% treasury stock cancellation on September 1 this year, it plans to complete the cancellation of all treasury shares (27.93%) by 2027, while implementing an active shareholder return policy including steady dividend increases. Future business areas include eco-friendly smart land-based salmon farming in the fisheries segment, key components and materials for secondary batteries in the packaging segment, and smart port cargo handling in the logistics segment.

Researcher Park stated, “It is advisable to use the stock price decline as a buying opportunity from a mid- to long-term perspective. The solid value of listed and unlisted investment securities will serve as a margin of safety while also acting as a factor for stock price revaluation.”