[Special Stock] CJ, "Applying Over 5 Trillion Won When Incorporating Olive Young as an Unlisted Subsidiary"

CJ's stock price is on the rise. Expectations that Olive Young will be incorporated as an unlisted subsidiary appear to be influencing the stock price, with a potential valuation exceeding 5 trillion won.

CJ Olive Young operating in downtown Seoul. Photo by Jinhyung Kang aymsdream@

At 10:23 AM on the 8th, CJ was trading at 133,900 won, up 1.98% from the previous day. During the session, it rose to 140,600 won, marking a 52-week high.

Kim Suhyun, a researcher at DS Investment & Securities, stated, "Initially, a significant decrease in new store openings was expected, leading to a forecasted peak-out in domestic growth this year. However, due to strengthening the quality of existing stores, strong inbound demand, and an increase in overseas online direct purchases, operating profit this year could exceed 500 billion won. In particular, as the loyal overseas customer base gradually grows, the focus will be on continuously enhancing the private brand (PB) lineup and product competitiveness."

Kim added, "If Olive Young goes public, its value is hardly recognized in CJ's valuation due to dual listing. However, if Olive Young remains unlisted and is incorporated as a 100% unlisted subsidiary, a valuation exceeding 5 trillion won can be fully applied. In this case, CJ's fair stock price would exceed 220,000 won," he analyzed.