[Click e-Stock] "CJ Freshway, a Standout Earnings Play on KOSDAQ"

On the 24th, Hana Securities set a target price of 48,000 won and a "Buy" investment rating on CJ Freshway, reflecting expectations for sales growth in the second half of the year.

Sim Eunju, a researcher at Hana Securities, stated in a report that "since the reopening, the company has been delivering meaningful growth based on economies of scale," adding that "it is also positive that profit visibility has improved compared with the past through changes in the purchasing method for meat ingredients."

CJ Freshway’s consolidated revenue in the fourth quarter of last year increased by 5.6% to 898.0 billion won, and operating profit rose by 19.0% to 30.0 billion won, in line with market expectations. This year, consolidated revenue and operating profit are estimated at 3.7555 trillion won and 112.0 billion won, respectively. In the food ingredients segment, sales growth is expected to accelerate in the second half of the year as online channels are strengthened. There is no disagreement about the mid- to long-term growth potential of online purchasing, and rapid short-term scaling up is expected thanks to supplier binding effects through integrated delivery services. In the foodservice segment, the company is expected to see improvements in the top line and operating margin due to increased catering orders at Incheon International Airport. It is also expected to strengthen its presence in the kids and senior channels.

Researcher Sim said, "Corporate value is expected to improve, driven by logistics efficiency and sales synergies resulting from last year’s integration and merger of Fresh One, first-mover advantages from strengthening sales through online channels, and stable profit generation in the foodservice segment."