 |
|
[Alpha Biz= Reporter Kim Minyoung] Yuanta Securities maintained its "buy" rating on CJ on the 27th, citing strong sales performance and improved profitability across all business segments. They raised the target price from the previous 130,000 won to 164,000 won.
"Based on the consolidated basis of the first quarter, CJ's sales amounted to 10.4 trillion won, with operating profit reaching 5,762 billion won, showing significant improvement," Yuanta Securities stated. "CGV and ENM turned to profit, and strong performance was seen across all business sectors, including the growth of the domestic and U.S.-centric food division and the expansion of high-margin products in the bio sector."
The research analyst further noted, "The high growth of Olive Young continued," adding, "Both online and offline sales of Olive Young grew by more than 20%."
With the expansion of Olive Young's stake, an increase in shareholder returns is anticipated. The analyst mentioned, "On April 30th, CJ acquired 11.3% of the Olive Young shares held by Glenwood," explaining, "With this acquisition, CJ is expected to receive dividends from Olive Young, contributing to an increase in shareholder returns by more than 10%."
Yuanta Securities concluded, "Reflecting the increase in the value of subsidiaries' shares and changes in net borrowing, CJ's fair enterprise value is estimated to be around 4.8 trillion won."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
