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CJ CheilJedang Headquarters Overview. (Photo: CJ) |
[Alpha Biz= Kim Sangjin] NH Investment & Securities Predicts CJ CheilJedang's Q4 Earnings Will Meet Expectations, Reaffirms 'Buy' Rating with Target Price of 390,000 KRW
NH Investment & Securities forecasted on the 9th that CJ CheilJedang’s Q4 earnings will align with consensus expectations due to factors like the resumption of direct transactions with Coupang and early shipments of Lunar New Year gift sets. The firm also expects the company's earnings recovery trend to continue this year, maintaining a "Buy" rating and a target price of 390,000 KRW. The previous day's closing price was 251,000 KRW.
NH Investment & Securities projected that CJ CheilJedang’s consolidated Q4 revenue would rise by 3% year-on-year to 7.5111 trillion KRW, with operating profit expected to grow by 31% to 391.1 billion KRW, in line with consensus. Excluding the performance of its subsidiary CJ Logistics, the company’s revenue is expected to increase by 2% and operating profit by 55% year-on-year.
The food division’s revenue is expected to increase by 2% to 2.8152 trillion KRW. Domestic food sales are likely to recover due to the resumption of direct transactions with Coupang and early shipments of Lunar New Year gift sets. The overseas food segment is expected to see strong growth in Europe and Australia, with Japanese sales showing signs of recovery.
The bio division is expected to see a decrease in profitability due to intensified competition in tryptophan, but significant improvement in operating profit compared to the previous year is expected due to a lower base effect.
In the feed & livestock (F&C) division, despite a slowdown in the increase of pork prices in Vietnam, NH Investment & Securities believes the division will maintain a profitable structure.
For the full year, operating profit is estimated to rise by 7% year-on-year to 1.6832 trillion KRW. While there are concerns about domestic food sales due to economic stagnation, the effect of resumed Coupang direct transactions will support growth, and overseas food sales are expected to continue growing, particularly in the U.S., Europe, and Australia.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
