[Click eStock] "CJ CheilJedang Expected to Meet Q2 Earnings Expectations"

Hana Securities analyzed on the 3rd that CJ CheilJedang is still undervalued considering the expansion of business control.

Sim Eun-joo, a researcher at Hana Securities, stated, "The consolidated sales and operating profit for the second quarter are estimated at 7.3539 trillion KRW and 364.9 billion KRW, respectively," adding, "This represents an increase of 1.9% and 5.9% compared to the same period last year."

She continued, "Excluding logistics, the consolidated sales and operating profit are 4.3499 trillion KRW and 244.9 billion KRW, respectively," and "Sales decreased by 1.7% year-on-year, while operating profit increased by 3.9%," she added.

She emphasized, "Domestic processed food sales are estimated to have increased by 8% compared to the same period last year," highlighting that "sales remain steady centered on new products including Gourmet Sobaba Chicken."

Additionally, she analyzed, "The bio business division is expected to show similar performance to the first quarter," noting that "the spot prices of key amino acids including lysine are stabilizing at the lower bound and showing a gradual upward trend, which is positive."

Researcher Sim explained, "Recently, the growth rate in Europe has been significant," adding, "European sales last year are estimated to have increased by about 40%." She continued, "This year, sales are expanding in France in conjunction with the ‘Paris Olympics,’" and said, "Considering the faster-than-expected recovery of pork prices in Vietnam, meaningful profit contributions are expected in the second half of the year."