[Infostock Daily= Reporter An Hoe Hyun] On the 26th, Daishin Securities raised its target stock price to 550,000 won and maintained its 'Buy' investment opinion on CJ CheilJedang, saying it is expected to secure a new growth engine for the bio business sector.
Daishin Securities said CJ CheilJedang's stock price has risen 23% over the past month to 8% points outperform(exceed profit rate) compared to the KOSPI.
Analysts say that the factors for strong stock prices are attributed to the momentum for price hikes of food stocks due to the announcement of price hikes by Pulmuone, Coca-Cola and Sempio Foods at the end of the year and the beginning of the year, and increased demand for amino acids due to an increase in the number of new pigs to be raised in China. Expectations for entering the eco-friendly bioplastic market also affected stock prices.
CJ CheilJedang announced in a conference call to announce its management performance in the third quarter on November 10 last year that it is seeking to expand its business area to white bio based on microbial fermentation technology.
CJ CheilJedang is building a production system for PHA(Poly Hydroxy Alkanoate), an eco-friendly bioplastic material. It plans to use existing facilities at its bio plant in Pasuruan, Indonesia, and estimated investment is 20 billion won, and production capacity(CAPA) is estimated 5,000 tons per year based on volume and CAPA is estimated to be late 20 billion won per year based on the amount.
"As the number of countries that restrict the use of disposable products is expected to gradually expand, it is expected that CJ CheilJedang's bio business sector will secure a new growth engine," the company said.
Reporter An Hoe Hyun ahh@infostock.co.kr
