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View of CJ CheilJedang headquarters (photo = CJ) |
[Alpha Biz= Reporter Kim Minyoung] Shinhan Investment & Securities Co. said on the 4th that CJ CheilJedang's performance will improve as the business changes positively, with sales of processed food in South Korea recovering due to increased demand for home meals. The investment opinion was 'buy' and the target price was 430,000 won. The closing price of the previous trading day was 317,000 won.
It expects CJ CheilJedang's sales to reach 7.28 trillion won in the first quarter of this year, up 2.9 percent from a year earlier, and its operating profit to rise 39.2 percent to 351.9 billion won, 6 percent above the consensus, according to Shinhan Investment & Securities Co. In particular, food sales are expected to increase by 5% due to increased internal demand and diversification of channels, and operating profit is expected to increase by 39% due to efforts to ease cost burden and streamline costs.
In addition, Schwans predicts that its market share and sales of its flagship products will continue to increase, while bio's operating profit will increase by 32% thanks to the recovery of tryptophan and specialty selling prices. Analysts say prices of major amino acid spots (spot) such as lysine have recently rebounded. Biological resources are expected to continue to suffer losses due to cost burdens, but will be reduced compared to the previous quarter.
Shinhan Investment & Securities said domestic processed food sales continued to recover due to increased demand for home rice. The reverse growth trend of domestic processed foods, which began at the end of 2022, continued until the second quarter of last year and turned positive from the third quarter. It is judged that the price competitiveness of processed foods is being highlighted as food prices rise sharply.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
