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(Photo = CJ) |
[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities estimated on the 12th that CJ CheilJedang would have improved financial results in the second quarter of this year. Amidst the momentum in overseas exports among food companies, CJ CheilJedang's stock price is expected to be re-evaluated. NH Investment & Securities maintained a 'Buy' rating and raised the target price by 9% to 470,000 KRW.
For the second quarter, CJ CheilJedang is expected to achieve consolidated sales of 7.4574 trillion KRW, up 3% year-on-year, and operating profit of 374 billion KRW, a 9% increase from the same period last year. Excluding subsidiary CJ Logistics' performance, sales and operating profit are estimated to increase by 1% and 7% respectively compared to the previous year.
NH Investment & Securities mentioned, "Domestic food sales are expected to grow slightly due to recovery in demand for processed foods despite a decline in material sector sales," and "In overseas markets, although there is an impact from decreased sales due to the disposal of Groundnut, CJ CheilJedang continues to expand its market share, especially in its key market, the United States."
The current stock price attractiveness is noted, with NH Investment & Securities stating, "Amidst the focus on overseas export momentum among food companies, CJ CheilJedang is also continuing to increase market share for its key products in the US market," and "The valuation is also accessible without much burden compared to the industry average."
Regarding the ongoing sale of subsidiary CJ Selecta, NH Investment & Securities commented, "If completed, the ongoing sale of CJ Selecta could lead to further upward revisions in earnings estimates, and we also anticipate improvements in financial structure due to the inflow of sale proceeds."
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
