[Infostock Daily= Reporter An Hoe Hyun] On the 21st, SK Securities maintained its investment opinion 'Buy' and target stock price of 118,000 won, saying that CJ is expected to normalize profits next year thanks to the growth of major subsidiaries.
"Among CJ's major subsidiaries, CJ CheilJedang is expected to see its operating profit increase 54.7% on-year in 2020, which is expected to improve significantly, but other subsidiaries are expected to be overall sluggish," the company said.
"In particular, CJ CGV due to the impact of COVID-19 is expected to turn into a deficit and CJ Freshway is also expected to decrease by a large margin," the company analyzed, adding, "CJ consolidated sales and operating profit will decrease by 1.9% and 6.1%, respectively."
"This year, CJ's major subsidiaries, which had been sluggish due to COVID-19, are expected to gradually recover due to the development of vaccines next year," the company said, adding, "In particular, CJ Olive Young, a major subsidiary, has been affected by a drop in offline sales, but it is likely to improve its performance as the proportion of online sales expands away from the aggressive expansion of the number of stores."
Reporter An Hoe Hyun ahh@infostock.co.kr
