[Click eStock] "Digital Daesung: Operating Profit Expected to Surge 46% This Year... Target Price Raised"

On March 5, Heungkuk Securities raised its target price for Digital Daesung to 11,000 won and maintained its "Buy" investment rating, forecasting continued high growth in earnings for 2026 following the company’s record-breaking performance last year.

Choi Jongkyung, a research analyst at Heungkuk Securities, stated in a report released the same day, "Digital Daesung achieved all-time highs in both revenue and operating profit last year." He explained, "This achievement was largely attributable to the full-year contribution of the Gangnam Daesung Residential Medical Center’s earnings and the effects of its newly expanded facilities." He further assessed that, despite a shortened discount period, the steady increase in registrations for the ‘2027 Daesung Pass’ indicates a structural transformation in which both pricing and demand are improving simultaneously.

Looking ahead to 2026, the momentum for earnings growth is expected to strengthen further. Heungkuk Securities estimated Digital Daesung’s revenue for this year at 273.2 billion won and operating profit at 46.2 billion won. This would represent a surge of 46.4% in operating profit year-on-year, with the operating margin reaching an all-time high of 16.9%. The firm analyzed that the stable profit contribution from the offline Gangnam Daesung Residential Centers (Queta and Medical Center), coupled with the normalization of pricing for the online Daesung MIMAC platform, has established a high-profit structure for the company.

Choi Jongkyung emphasized in the report that "Digital Daesung is a company equipped with growth in earnings, profitability, market competitiveness, and a shareholder return policy." He added, "This year, the company is expected to achieve another meaningful leap not only in revenue and profit scale but also in key profitability indicators." He also noted, "The company’s policy of allocating more than 50% of its controlling shareholders’ net profit to shareholder returns through 2028, as well as its ongoing combination of dividends and share buybacks and cancellations, are important factors for a corporate value re-rating."

Choi further stressed, "The long-term profit growth trend is already driving a structural transformation that surpasses previous market capitalization levels." He concluded, "The current share price remains undervalued, as it does not fully reflect the company’s earnings and shareholder return policies."

This content was produced with the assistance of AI translation services.