[Click eStock] "CJ, Olive Young Earnings Outlook Raised... Target Price Up"

On September 12, Daishin Securities announced, "We have raised our target price for CJ to 220,000 won, up by 20.8%, reflecting the upward revision of Olive Young's earnings outlook and the resulting increase in equity value." The investment opinion remains "Buy."

Yang Ji-hwan, a researcher at Daishin Securities, stated, "We have revised Olive Young's sales forecasts for 2025 and 2026 to 5.6 trillion won (a 17.6% increase year-on-year) and 6.4 trillion won (a 13.5% increase), respectively. Accordingly, we have raised the value of CJ's 51.2% stake in Olive Young by about 25%, from 3.7 trillion won to 4.6 trillion won."

The growth in Olive Young's sales is being positively influenced by the increasing demand for foreign arrivals. As of July 2025, the number of foreign entrants reached 1,733,000, a 23.1% increase compared to the same period last year, marking the highest figure since July 2016. The number of Chinese entrants has surpassed 600,000 for the first time since October 2016, and from the end of September, visa-free entry for group tourists will be implemented, accelerating the recovery of foreign visitors.

Researcher Yang analyzed, "With the spread of K-beauty, inbound (overseas visitor) sales at Olive Young are likely to exceed previous forecasts, and the growing proportion of online sales is raising expectations not only for top-line growth but also for improved profitability."

He also noted, "With the news of Lee Sunho, the fourth-generation member of the CJ Group, returning to the holding company, expectations are rising for a merger and succession between CJ and Olive Young." However, he assessed, "The likelihood of a merger or succession process between the two companies occurring in the short term is low."