[Featured Stock] Cheil Worldwide Rises on Strong Earnings Outlook

[Asia Economy Reporter Song Hwajeong] Cheil Worldwide is showing strength amid expectations of strong performance this year.

As of 9:26 AM on the 19th, Cheil Worldwide was traded at 24,050 KRW, up 450 KRW (1.90%) from the previous day.

The strong performance outlook for the third and fourth quarters of this year is interpreted as driving the stock price up. Hanwha Investment & Securities forecasted that Cheil Worldwide will record its highest-ever performance in the fourth quarter following strong results in the third quarter this year, and raised the target price from 31,000 KRW to 32,000 KRW. The investment rating was maintained as 'Buy.' Sohee Kim, a researcher at Hanwha Investment & Securities, analyzed, "Cheil Worldwide's third-quarter results are expected to have exceeded market expectations with a gross profit of 316.1 billion KRW and an operating profit of 70.1 billion KRW," adding, "The headquarters' gross profit is estimated to have increased by 7% year-on-year, and overseas gross profit showed balanced growth across all regions, growing by 16.1%." The operating profit for the fourth quarter is also expected to increase by 23%, marking the highest-ever performance. Hanwha Investment & Securities revised upward its operating profit estimates for Cheil Worldwide by 5.2% for this year and 3.8% for next year compared to previous estimates.