[Click eStock] Cheil Worldwide, Slow Industry Recovery... Target Price Downgraded

Hanwha Investment & Securities has lowered the target price for Cheil Worldwide to 26,000 KRW, reflecting the trend of companies cutting marketing expenses due to the economic recession. However, it maintained a 'Buy' rating, anticipating improved performance in the second half of the year.

On the 25th, Kim So-hye, an analyst at Hanwha Investment & Securities, stated, "Despite it being the peak season in the fourth quarter of last year, the economic downturn and sluggish market conditions continued, leading advertisers to maintain a focus on marketing cost efficiency." She analyzed, "Cheil Worldwide is expected to report decent results with a 0.2% increase in gross profit and an 8.6% rise in operating profit, but this reflects the previously lowered earnings forecasts."

She added, "Non-affiliated volumes outside the Samsung Group are growing steadily in emerging markets and the digital sector, and marketing related to the Paris Olympics from July to September will also contribute to overseas performance," predicting, "The possibility of performance improvement increases as we move into the second half of the year." She further noted, "Although short-term stock momentum is low, if market conditions improve, Cheil Worldwide is expected to show the most resilient earnings growth within the industry."