Hi Investment & Securities forecasted that CJ Freshway's performance will improve as the stabilization of large-scale business operations and enhanced capabilities compared to before create a virtuous cycle leading to increased control.
Researcher Lee Kyung-shin of Hi Investment & Securities stated, "It is estimated that in the second quarter of this year, consolidated sales reached 835.3 billion KRW and operating profit was 31.9 billion KRW," adding, "Sales increased by 7.2% compared to the same period last year, while operating profit decreased by 0.6%."
He continued, "Despite the impact of the dining-out market downturn and increased investment expenses, the increase in order backlog in the meal service sector has kept related operating performance solid," and added, "Some performance adjustments followed due to issues such as strikes by specialized doctors at large hospitals."
He emphasized, "In the group meal service sector, growth continues due to an increase in the number of meals centered on core channels and expansion of new orders," and "the fixed cost coverage trend is also smooth."
Researcher Lee analyzed, "Once the strike issue is resolved, the stabilization of large-scale business operations and enhanced capabilities compared to before will manifest as a virtuous cycle of additional control improvement," adding, "performance improvement can be expected." He also said, "food material distribution continues to respond with customized products related to the dining-out market slowdown," and "recent remarkable growth in the online business unit's operating performance is also positive."
Furthermore, he analyzed, "There is a high possibility of further expansion of long-term operating performance based on competitiveness considering linked strategies such as online platform establishment and differentiated product and solution supply."
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