[Click eStock] "Venue-G's Samsung and SK hynix Holdings Worth Up to 1.1 Trillion Won... Asset Value Far Exceeds Market Cap"

It has been analyzed that the value of Samsung Electronics and SK hynix shares held by KOSDAQ-listed Venue-G could reach up to 1.1 trillion won. Considering that Venue-G's current market capitalization is around 200 billion won, the value of its listed stock holdings alone far exceeds the company's entire market value. In addition, with growth potential in its core business, driven by an increase in the number of marriages and the planned renewal of its Ilsan branch, analysts point out that both asset value and earnings improvement should be closely watched.

According to an independent research report published by ARIS on August 18, Venue-G is estimated to hold approximately 1.5 million shares of Samsung Electronics and about 40,000 shares of SK hynix. The report estimated that if Samsung Electronics shares reach 400,000 won, 500,000 won, and 600,000 won per share, the value of Venue-G's holdings would be 600 billion won, 750 billion won, and 900 billion won, respectively. For SK hynix, if the share price is 3 million won, 4 million won, or 5 million won, the value of its holdings was analyzed to be 120 billion won, 160 billion won, and 200 billion won, respectively.

Therefore, the combined value of the two holdings is estimated to range from approximately 720 billion won to as much as 1.1 trillion won, depending on the stock price and the timing of a possible sale. In contrast, Venue-G's current market capitalization is only about 206.1 billion won. ARIS stated, "Valuing only its listed stock holdings suggests that the current corporate value is trading at a significant discount."

The rise in the value of its stock holdings has also been reflected in Venue-G's results. Shares of Samsung Electronics and SK hynix are classified as "financial assets at fair value through profit or loss" in its consolidated financial statements, meaning valuation gains and losses due to share price changes are reflected in net profit. Venue-G is estimated to have posted a cumulative gain of about 309.1 billion won from financial asset revaluations as of the second quarter of this year.

As a result, on a consolidated basis for the second quarter of this year, Venue-G posted revenue of 22.9 billion won, operating profit of 7.2 billion won, and net income of 277.3 billion won. Net income for the first half alone exceeded its current market capitalization. ARIS forecasted full-year revenue of 51.6 billion won and operating profit of 16.5 billion won for Venue-G this year.

The core business is also on a recovery track. Venue-G's primary operations are wedding halls, hotels, and golf courses, with the wedding hall sector accounting for 68.74% of consolidated sales in the second quarter of this year. The number of weddings and average customer spending are key performance variables in the wedding business, and expectations for a business upturn are rising amid a recent increase in the number of marriages in Korea.

According to the report, the number of marriages in Korea last year reached 240,000, an 8.1% increase from the previous year. With the upward trend in marriage numbers continuing since 2023 and demand growing for personalized and premium wedding services, average wedding costs are rising by more than 7% annually. ARIS anticipates that companies with differentiated brands and competitive facilities will drive higher per-customer spending and margins.

The company is also securing new growth drivers. Venue-G is renewing the Grand Department Store Ilsan branch, which ceased operations in February last year, as a wedding hall-centric multi-complex. The project is scheduled for completion in July 2027 and will feature three large wedding halls, a hypermarket, food and beverage brands, specialty stores, and a directly operated fitness center. With direct connection to Juyeop Station on Subway Line 3 and substantial parking, the company plans to capture wedding demand in northern Gyeonggi Province.

ARIS stated, "With the recent increase in marriages coinciding with a shortage of wedding halls in the capital region, if stable reservations are secured for the new wedding halls, the existing business is likely to see both external growth and improved profitability."

The company’s high treasury share ratio was also highlighted as a factor for revaluation of shareholder value. Venue-G holds treasury shares equal to about 16.6% of the total issued shares. If these shares are retired, the reduction in outstanding shares will increase both earnings per share and net asset value per share.

ARIS analyzed, "If all treasury shares held are canceled, an increase in per-share value can be anticipated thanks to the decrease in the number of shares in circulation. Considering that the current price-to-book ratio is as low as 0.4 times, the likelihood of a corporate value re-rating is also high." The report also cited the possibility that should Venue-G sell part of its Samsung Electronics and SK hynix holdings, the funds could be used for increased dividends or further treasury share buybacks and cancellations as means of shareholder return.

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