[Infostock Daily= Reporter An Hoe Hyun] Hi Investment & Securities analyzed on the 9th that CJ CheilJedang's business performance reflects its business portfolio suitable for changes in consumption patterns after COVID-19. Earnings growth is expected to continue in the mid- to long-term. Investment opinion was 'Buy' and target stock price was raised by 3.9% from 510,000 won to 530,000 won.
"We will raise our target stock price to 530,000 won depending on business performance estimates and valuation changes," the company said and predicted, "Despite the short-term rapid stock price recovery, the visibility of improved electronic operating performance and valuation attractiveness will lead to a steady upward stock price trend."
CJ CheilJedang recorded consolidated sales and operating profit of 6.1514 trillion won and 296.7 billion won, respectively, in the fourth quarter of last year.
"The sales growth rate of processed foods rose 4.4% year-on-year, and in Korea, it grew 1% year-on-year due to increased demand for B2C including HMR products despite SKU demarketing and decreased B2B," the company explained, adding, "Given that the COVID-19 issue continues, the decline in B2B demand is likely to maintain the trend until the first quarter of this year. However, it is not too much to assume normalization after the issue."
Reporter An Hoe Hyun ahh@infostock.co.kr
