[Click eStock] "CJ CheilJedang, H2 Performance Recovery Expected... Target Price Maintained"

On the 10th, Kiwoom Securities maintained its 'Buy' rating and target price of 465,000 KRW for CJ CheilJedang, stating that "performance recovery is expected due to processed food sales growth and cost improvement in the second half of the year." The previous day's closing price was 310,500 KRW.

On the same day, Park Sang-jun, a researcher at Kiwoom Securities, said, "Although CJ CheilJedang's stock price fell about 20% since early last month, the decline in raw material input costs and the recovery of domestic and overseas processed food sales will drive performance improvement in the third quarter."

Expansion of food sales in the global market is notable. In particular, sales of dumplings and pizza are increasing in the European and U.S. markets, and domestic processed food sales are expected to rebound due to the Chuseok season and the resumption of Coupang Rocket Delivery. In the U.S., products such as soba chicken and instant rice are also expanding their sales.

Researcher Park explained, "CJ CheilJedang's global sales will continue to grow through new product launches and regional expansion centered on K-Food. Processed food sales are maintaining an upward trend based on the U.S. and Europe, and in Europe, brand awareness enhancement through Olympic marketing will have a positive effect."

Annual operating profit for this year is expected to increase by about 25.2% to 161.6 billion KRW. Researcher Park said, "Thanks to cost ratio improvement and the rebound in domestic processed food sales growth rate, performance improvement momentum will strengthen in the second half of the year," adding, "In the mid-term, global food sales growth rate is expected to gradually rise supported by new K-Food product launches and regional expansion."