[Click eStock] "Dongwon Industries, Expecting Momentum for 2nd Quarter Earnings Growth"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment stated on the 17th that Dongwon Industries' first-quarter earnings are expected to meet market expectations, and the earnings momentum is likely to expand from the second quarter, maintaining a 'Buy' investment rating and a target price of 300,000 KRW.

Sim Eunju, a researcher at Hana Financial Investment, forecasted, "Dongwon Industries' consolidated first-quarter sales and operating profit are expected to be 730.7 billion KRW and 54 billion KRW, respectively. Although the average first-quarter pole-and-line tuna price is 1,200 USD per ton, Dongwon Industries' selling price is understood to be 1,400 USD per ton, resulting in earnings that meet market expectations due to the higher-than-expected selling price."

The earnings momentum is also expected to expand in the second quarter. This year's consolidated sales are projected to be 2.8891 trillion KRW, and operating profit 2.35 trillion KRW, representing increases of 7.7% and 21.3% year-on-year, respectively.

The core of this year's earnings improvement is expected to be the main business, the seafood division. Researcher Sim Eunju explained, "The seafood division's performance is expected to show significant improvement from the second quarter compared to the previous year," adding, "This year's operating profit for the seafood division is estimated to improve sharply to 57 billion KRW year-on-year, driven by the recent substantial rise in pole-and-line tuna prices from the bottom and the decline in oil prices."

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