[Click eStock] "VenueG Holds Financial Assets Five Times Its Market Cap... Corporate Value Re-Evaluation Expected"

On January 23, independent research firm ValueFinder projected that VenueG's substantial financial assets could serve as a factor for a corporate value re-evaluation. As of the end of the third quarter last year, VenueG's assets-including stocks and real estate-amounted to approximately 744.3 billion won, which is five times larger than its market capitalization of 145.1 billion won as of the previous day.

Founded in 1979, VenueG specializes in the wedding hall, hotel, and golf course businesses. As of the cumulative third quarter last year, revenue was divided as follows: wedding halls accounted for 58.4%, hotels for 12.7%, and golf courses for 28.9%. The department store division, which previously contributed a high portion of revenue, ceased operations in February last year due to declining profitability.

Lee Chungheon, a researcher at ValueFinder, explained, "The reason attention is warranted for the company is that its financial assets in stocks and real estate have not yet been reflected in its corporate value." He added, "As of the third quarter last year, the company held financial assets worth 152.8 billion won. In the past, the company issued exchangeable bonds worth 20 billion won using Samsung Electronics shares as collateral."

Lee further stated, "If we estimate based on Samsung Electronics shares, a rise in Samsung Electronics' stock price could directly translate into net profit." He explained, "Applying this, the value of the company’s stock holdings at the end of the fourth quarter last year is estimated to be approximately 219.3 billion won."

Lee particularly highlighted the value of the company’s real estate. VenueG’s tangible assets are based on a revaluation model, while investment properties use a cost model. Estimating the value of these properties on the balance sheet, the figure is expected to reach about 474.4 billion won. Additionally, if the value of the VenueG Country Club golf course-adjusted for the company’s equity stake-is included, the total could be considered up to 525 billion won.

He added, "VenueG also holds 16.6% of its own shares. Considering that amendments to the Commercial Act are a key government policy, there is a possibility that the relevance of treasury share retirement could become more prominent depending on detailed future provisions."