[Click eStock] "Cheil Worldwide Continues Digital-Centered Growth... Target Price Up 10%"

[Asia Economy Reporter Park Jihwan] Shin Young Securities maintained a 'Buy' rating on Cheil Worldwide on the 15th, citing continued growth centered on digital, and raised the target price by 9.7% from the previous 31,000 KRW to 34,000 KRW.

Shin Suyeon, a researcher at Shin Young Securities, stated, "Cheil Worldwide is expected to deliver strong performance led by digital in the third quarter, similar to the first half," adding, "The region with the most anticipated external growth is North America, thanks to an increase in agency volume from major advertisers." She emphasized that projects that began last year are continuing this year with expanded service areas, and that based on marketing capabilities, the company is expanding into sustainable service areas such as content production and social marketing, maintaining long-term growth potential.

Since the second quarter, most regions have shown performance recovery, and this trend is expected to continue into the third quarter. In particular, the European region, which has the largest sales scale among overseas markets, is also showing signs of recovery, and except for the Latin America region, most areas are expected to show positive trends, according to analysis.

Researcher Shin Suyeon said, "The China region is positive due to stable volume secured based on the digital platform business capabilities of its subsidiaries," adding, "The agency areas of major advertisers are also expanding."

Domestically, many tech-based digital projects are expected to proceed with the launch of new products by major advertisers. Researcher Shin emphasized, "Based on e-commerce operations and data analysis capabilities for major advertisers, the company is seeking platform operation business opportunities for new advertisers, which looks positive."