[Click eStock] "Cheil Worldwide Expected to Achieve Net Growth in Q3... Faster Recovery Than Expected"

[Asia Economy Reporter Park Ji-hwan] Daishin Securities on the 9th expressed expectations that Cheil Worldwide's anticipated net growth, originally expected in the 4th quarter, will be achieved in the 3rd quarter, and presented an investment opinion of 'Buy' with a target price of 25,000 KRW.

Kim Hoe-jae, a researcher at Daishin Securities, analyzed, "The headquarters' gross profit (GP) is expected to be 74.4 billion KRW, a 4.2% increase compared to the previous year, while overseas is forecasted to be 210 billion KRW, a 1.8% decrease year-on-year."

Cheil Worldwide is rapidly recovering mainly in domestic and digital sectors. Initially, negative growth was expected until the 3rd quarter, with net growth projected in the 4th quarter, but Samsung Electronics' digital marketing and media execution are increasing, according to evaluations.

Researcher Kim Hoe-jae forecasted, "Non-affiliated advertisers who had reduced marketing in the first half are returning to digital marketing, achieving net growth from the 3rd quarter."

He added, "Especially, with the increase in Samsung Electronics' agency in North America, net growth continued following an 11% year-on-year increase in the first half. China is expected to reduce the overall negative growth by recovering from a 16% year-on-year decline in the first half due to Samsung Electronics' e-commerce agency and the recovery of non-affiliated advertisers."

Researcher Kim explained, "In the first half, GP decreased by 7% year-on-year due to offline event cancellations and reduced retail marketing, but Samsung Electronics unusually held Galaxy Unpacked events online twice, on the 5th of last month and the 1st of this month, and on the 2nd, also held a virtual conference, rapidly transitioning to digital."