KB Securities analyzed on the 2nd that resolving the duplicate listings issue for Dongwon Industries is expected to enhance corporate value. It initiated coverage on the corporation, providing a buy investment rating and a target price of 87,000 won. The closing price of Dongwon Industries on the previous transaction day was 50,900 won.
One of the discount factors for holding companies' stock prices is the issue of duplicate listings. Park Geon-Young, a researcher at KB Securities, noted, "Dongwon Industries decided to resolve the duplicate listings and to enhance shareholder value by merging the listed subsidiary Dongwon F&B into a 100% owned subsidiary and delisting it."
Dongwon Industries plans to integrate and reorganize its global food division after the stock exchange. Researcher Park analyzed, "Given the merger and acquisition capabilities built up until now, this is a pivotal moment to focus on pursuing large-scale mergers and acquisitions in the global food division."
The resolution of the lawsuit issues surrounding Dongwon Industries is also a positive factor. Researcher Park stated, "StarKist, in which Dongwon Industries holds 100% equity, is the number one company in the U.S. canned tuna market," and added, "Although StarKist was involved in a price-fixing lawsuit, this issue has been completely resolved with the payment of approximately 300 billion won in settlement."
He further analyzed, "Considering the anticipation of new business following the resolution of the lawsuit issues and the growth potential of StarKist after its acquisition by Dongwon Industries, it is necessary to reasonably reflect StarKist's value."
KB Securities estimated StarKist's corporate value at a minimum of 1 trillion won.