[Click eStock] "Daewon Industry, Benefiting from Carnival's Popularity"

Hana Securities analyzed on the 3rd that Daewon Industrial is undervalued as it holds net cash exceeding its market capitalization.

Song Seonjae, a researcher at Hana Securities, explained, "Daewon Industrial's stock price shows an extremely low valuation with a price-to-earnings ratio (PER) of 3 times and a price-to-book ratio (PBR) in the high 0.2 range based on this year's expected performance," adding, "It holds net cash of 218.5 billion KRW."

He continued, "The Korean headquarters is compensating for the sluggish overseas subsidiaries through increased production and mix improvement of key supply models," and added, "Carnival production, which accounts for 40% within the Korean corporation, increased by 34% last year."

He analyzed, "The Carnival effect is expected to continue in Korea this year, and Russia may recover from its worst state," and said, "We expect benefits from the newly launched new Carnival in November last year and the recently strong-performing Carnival hybrid model." Additionally, he stated, "In Russia, preparations for restarting operations are underway after the sale of the client's factory," and "We expect to see a recovery from the worst conditions."