[Click eStock] After Students, Securities Analysts Turn to Daesung MyMac

Heungkuk Securities raised its target price for Digital Daesung from KRW 11,500 to KRW 13,000. It maintained its Buy rating.

On November 12, Heungkuk Securities researcher Choi Jong-kyung said, "We have factored in strong performance, with the company setting new records," adding, "Considering its active shareholder return policy, the company's value is now beginning to find its proper level."

Digital Daesung is an education platform company divided into a high school business, including Daesung MyMac and Igam mock exams, and an elementary and middle school business, including Hanwoori. Its high school platforms, such as Daesung MyMac, are improving their market competitiveness and profitability. From 2025 to 2028, Digital Daesung is implementing a policy to return at least 50% of net income attributable to owners of the parent through dividends and share buybacks and cancellations.

Researcher Choi focused on the scale of profit growth. In the third quarter of this year, revenue rose 10.9% year over year to KRW 89 billion, while operating profit increased 29.4% to KRW 27.5 billion, marking the highest quarterly results on record. Choi said, "Even accounting for the seasonal peak, operating profit of KRW 27.5 billion is comparable to the company's full-year operating profit of KRW 28.4 billion in 2022."

The high school business is showing particularly strong growth. Online revenue in the segment was KRW 40 billion. Since normalizing the price of the "2027 Daesung Pass" in November last year, the average amount spent per paid member has increased. Choi explained that the number of members is also growing, enabling the company to post record-high revenue. Revenue from mock exams in the high school segment was KRW 14.9 billion, reflecting the impact of price increases. Revenue from company-operated academies and boarding academies was KRW 23.5 billion. Choi said, "Strong enrollment at facilities such as the medical school prep center has helped the company deliver solid results," adding, "It is building a firm foothold in the offline market for top-tier students."

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