“E-Mart, SK Wyverns acquisition limited adverse effects” [유진투자증권]

Eugene Investment & Securities analyzed that the impact on E-Mart, which acquired professional baseball team SK Wyverns on the 27th, will have a marginal impact on consolidated earnings, and that this is an issue that has already been reflected in the stock price.

E-Mart signed a memorandum of understanding (MOU) with SK Telecom for the sale of shares and assets of SK Wyverns the day before. The transaction targets 1 million shares of SK Wyverns common stock (100% stake) and land and buildings. The trading price is 3,280 billion won for land and buildings with 100 billion won in stocks, a total of 135 billion won.

Researcher Joo Young-hoon said, “If you look at SK Wyverns’ 2019 performance, which was operated normally in consideration of the situation where it was unattended due to Corona 19 last year, the annual sales and operating loss were around 56.2 billion won and 600 million won, respectively.” The impact can be seen as insignificant.”

He added, “Unlike the past, when the support of the parent company took up an absolute proportion, professional baseball teams have some degree of self-sustainability, so it is not expected that enormous investment costs will be invested in the future.”

He said, “Considering that the recent sale price of Doosan Bears, which is currently being sold by creditors, is around 200 billion won, we believe the acquisition price of SK Wyverns is also reasonable.” It is highly likely to do it.”

Still, he predicted, “The details of the acquisition were disclosed in advance through media reports prior to the announcement, and accordingly, as the stock price fell 4.9% the previous day (26th), further decline due to the issue will be limited.”

Researcher Joo said, “We believe that E-Mart’s investment points, such as discount store turnaround and Sup.com rebalancing, remain unchanged.”