Kang Eun-ji, a Korea Investment & Securities researcher, said on the 29th that Dongwon Industries' global food business growth is entering full swing and that it will maintain its status as Korea's No. 1 fisheries company.
Researcher Kang initiated coverage on Dongwon Industries with a buy rating and a target price of 65,000 won. That is 30.8% higher than the previous day's closing price of 49,700 won.
Dongwon Industries announced a Global Food Division in April, deciding to integrate and reorganize its domestic and overseas food affiliates to strengthen business competitiveness. Researcher Kang projected that collaboration between Dongwon F&B and StarKist will deliver results the fastest.
Kang also said Dongwon Industries will maintain its position as Korea's No. 1 distant-water fisheries operator. Kang said, "To newly enter the distant-water fishing industry, capital is needed to build large vessels and existing operators must retire vessels, creating a high entry barrier," adding, "Dongwon Industries is highly likely to continue to hold a stable market position."
However, Kang noted that fishery resources are limited and ocean environment changes from global warming impose constraints on structural growth. Kang added that the success of Dongwon Industries' entry into aquaculture will be key to raising the value of its fisheries business.
Dongwon Industries is preparing a land-based salmon business by making salmon farming a new growth engine and establishing a joint venture with Salmon Evolution.
Kang positively assessed that Dongwon Industries is actively executing its plan to enhance corporate value. Since this year, Dongwon Industries has been paying semiannual dividends and has set medium- to long-term shareholder return targets of a 30% payout ratio and a 40.0% total shareholder return (TSR).
Kang said, "Dongwon Industries' annual dividend per share will increase from 1,000 won in 2024 to 2,100 won in 2027."