[Click eStock] "CJ Freshway, Growth Trend Despite Weak Dining-Out Market"

On the 20th, IBK Investment & Securities forecasted that CJ Freshway would continue its growth trend from the fourth quarter of last year despite the sluggish dining-out market. The investment opinion was maintained as 'Buy' with a target price of 48,000 KRW.

Nam Seong-hyun, a researcher at IBK Investment & Securities, predicted CJ Freshway's first-quarter performance growth this year, projecting consolidated sales of 780.3 billion KRW (up 6.7% year-on-year) and operating profit of 11.1 billion KRW (up 5.7% year-on-year). Researcher Nam explained, "Due to increased volume within the group, the raw materials division is likely to continue its growth trend, and the expansion of franchise-related sales proportion and growth in O2O (online-to-offline business) are expected to contribute. The effects of concession operations at Incheon Airport are also anticipated." The increase in group meal orders secured last year and the rise in meal consumption at major business sites are also positive factors.

Despite the sluggish dining-out industry, CJ Freshway's market dominance is reportedly expanding. Researcher Nam stated, "Although general restaurant sales are sluggish, franchise orders are continuously increasing. This indicates that the dining-out ingredient market is accelerating toward a form where ingredient distributors place orders and deliver ingredients (C&D). The company's market dominance, which provides total solutions (solution fees), can increase."