Uncertainties over Coway
’s stake sale will remain for the time being, said IBK Securities on Dec. 21, maintaining a “buy” recommendation and 120,000 won (US$110.99) target price.
Coway has announced that its largest stakeholder Coway Holdings has not been seeking to sell off its stake but Woongjin acknowledged that it is considering taking back control of the purifier company.
Woongjin is strengthening commitment to reenter the purifier business especially as the five-year non-competition agreement expires in January 2018, said analyst An Ji-yeong.
Although it has lost the lawsuit against Coway Holdings, established by MBK Partners, there still is a possibility that the private equity firm might sell Coway back, noted the analyst.
Coway’s fourth-quarter revenue will rise 6.5 percent on-year to 2.35 trillion won and operating profit by 38 percent to 508.7 billion won, she estimated.
Although the competition is heightening in rental business, it will be able to cement its position as it expands the business into clothing care system, added An.
By Hwang You-mee (email@example.com