[Click eStock] CJ CheilJedang, Strong Q2 Earnings... Target Price Raised to 465,000 Won

Kiwoom Securities raised the target price for CJ CheilJedang from 440,000 KRW to 465,000 KRW on the 5th, expecting the company's Q2 earnings to meet market expectations. The investment rating was maintained at 'Buy.'

Park Sang-jun, a researcher at Kiwoom Securities, stated in a report on the same day, "The company is expected to continue its overall performance improvement trend, supported by global food sales growth, growth centered on high-margin products, and stabilization of raw material input costs." He analyzed, "CJ CheilJedang's Q2 consolidated operating profit is expected to be 371.3 billion KRW, in line with market expectations and better than concerns."

The profitability improvement trend is expected to continue in the second half of the year. Researcher Park Sang-jun predicted, "In the second half, the stabilization of raw material input costs, mainly sugar, is expected to restore margin spreads in the food and bio sectors, and the F&C sector is also expected to contribute to profitability improvement as the livestock market in Vietnam recovers."

Accordingly, the mid-term overall operating profit margin rebound trend is expected to continue smoothly.

He added, "The food sector plans to focus on sales growth in the US, Europe, and Australia following the renewal of the Bibigo brand," and said, "In the US, expansion of sales of key products such as pizza dumplings and new channel expansion for items like soba chicken kimchi are expected, while in Europe, marketing activities are anticipated to be strengthened mainly in France, where the Olympics will be held."