[Click eStock] "Cheil Worldwide Expected to Recover Earnings with Galaxy S20 Launch"

Ebest Investment & Securities Issues 'Buy' Investment Opinion and Sets Target Price at 32,000 KRW... Closing Price on 9th at 21,950 KRW

[Asia Economy Reporter Kum Boryeong] Cheil Worldwide is expected to recover quickly after experiencing a temporary slump in actual performance.

According to Ebest Investment & Securities on the 10th, Cheil Worldwide's operating gross profit for the fourth quarter of last year is estimated at 322.3 billion KRW, and operating profit at 51.4 billion KRW. These figures represent increases of 3.3% and 1.4% respectively compared to the previous year. Hyunyong Kim, a researcher at Ebest Investment & Securities, explained, "The growth rate in scale recorded the lowest level in 10 quarters since the second quarter of 2017 (-0.1%), which is attributed to a temporary delay in marketing budget execution by captive clients."

The performance is expected to recover rapidly through the launch of the Galaxy S20 and strengthened foldable marketing. Samsung Electronics has confirmed it will hold the Galaxy S20 Unpacked event on the 11th of next month, and it is highly likely that the Galaxy Fold 2 will also be unveiled on the same day. Researcher Kim said, "From next month, a large-scale marketing offensive by captive clients is an obvious situation, and a sharp turnaround in the company's performance is expected," adding, "This year's performance is expected to include the effect of deferred marketing execution in the fourth quarter, and double-digit growth in scale is also possible."

Ebest Investment & Securities gave Cheil Worldwide a 'Buy' investment opinion with a target price of 32,000 KRW. The closing price on the 9th was 21,950 KRW.

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