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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] IBK Investment & Securities stated on the 26th that CJ Freshway's performance growth may be limited in the third quarter due to market conditions. However, starting from the fourth quarter, the company's performance is expected to improve, and considering the profit growth expected until next year, the stock is believed to be excessively undervalued.
In a report released on the same day, IBK Investment & Securities estimated that CJ Freshway's third-quarter revenue would reach 856.7 billion KRW, a 5.9% increase year-on-year, and that operating profit would be 31.2 billion KRW, reflecting a 3.3% growth over the same period. They projected that a one-time expense of 24.5 billion KRW would occur due to fines imposed by the Fair Trade Commission, leading to a decline in recurring profits.
IBK further noted that the growth of the corporate meal division is expected to drive overall performance in the third quarter, although a slowdown in client revenues due to struggles in the food service industry may limit performance growth.
The firm identified several factors contributing to revenue growth in the third quarter, including an expansion of client accounts due to organizational restructuring, strong demand in corporate meals from new contracts, increased market share through online channels, and growth in the raw materials division. However, rising costs due to workforce expansion and strikes in hospitals are anticipated to act as limiting factors for growth.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
