[Click e-Stock] "Digital Daesung Confirms Structural Strengthening...Target Price Raised"

Heungkuk Securities raised its target price for Digital Daesung from 11,000 won to 11,500 won, citing strong earnings growth and shareholder return policies.

Heungkuk Securities evaluated that Digital Daesung’s improvement in first-quarter performance this year is not a short-term phenomenon, but rather the result of simultaneous profitability improvements across both its online and offline businesses. The firm particularly noted that the overall business structure has been strengthened, thereby enhancing the company's competitiveness.

In fact, during the first quarter, standout performances from “Daesung MyMac,” “Gangnam Daesung Medical Center + Gangnam Daesung Dormitory QUETTA,” and others drove the company’s growth. Based on these results, Heungkuk Securities projected that Digital Daesung is highly likely to achieve record-high results again this year.

In the online high school segment, Daesung Pass achieved the highest sales volume in six years, even amid price normalization. On the offline side, Gangnam Daesung Medical Dormitory and the directly operated Quetta Academy reached all-time high sales, boosted by robust recruitment in both the winter school and regular programs, maximizing profitability improvements.

Choe Jonggyeong, a researcher at Heungkuk Securities, stated, “Digital Daesung is expected to reach 280.2 billion won in sales and 46.2 billion won in operating profit this year, setting new record highs.” He also highlighted the company’s policy to return more than 50% of controlling shareholder net profit to shareholders by 2028 and a dividend yield in the 7% range, both as positive factors.

Choe further analyzed, “Digital Daesung is a company with both earnings growth, profitability, and shareholder return policies in place,” adding, “Given the continued trend of record-high performance, the current share price is significantly undervalued.”

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