[Infostock Daily= Reporter An Hoe Hyun] NH Investment & Securities predicted on the 16th that CJ CheilJedang will continue to grow by securing power through entering the PHA(biodegradable plastic) market. Investment opinion 'Buy' and target stock price of 600,000 won were maintained, respectively.
CJ CheilJedang is working on eco-friendly management and is expanding its business scope to related new areas. In particular, it has secured new growth engines by entering the market through establishing a production system for biodegradable plastic materials(PHA).
Due to COVID-19, the number of deliveries and packaging has soared due to strengthening social distance and restrictions on restaurant business hours, highlighting the problem of plastic treatment. Existing petroleum-based plastics create environmental destruction issues and are difficult to recycle, which has led to a surge in interest in plastics that are biodegradable from an eco-friendly perspective.
"It still accounts for only 1~5% of the total plastic market, but it is expanding rapidly every year," the compnay explained, adding, "In particular, the European Union(EU) introduced a Plastic Tax as of January 1 this year and with China gradually restricting the use of general disposable plastic from the end of last year, the introduction of eco-friendly plastic is expected to be essential, and the biodegradable plastic market is expected to accelerate growth."
Reporter An Hoe Hyun ahh@infostock.co.kr
