[Click eStock] "Cheil Worldwide, Increased Advertising Expenditure... Expecting Strong Earnings"

[Asia Economy Reporter Park Jihwan] DB Financial Investment stated on the 10th that Cheil Worldwide is expected to show favorable performance due to increased advertising spending by major advertisers and growth from non-affiliated advertisers. The investment rating was maintained as Buy.

Shin Eunjeong, a researcher at DB Financial Investment, said, "In 2020, high growth is expected in overseas and digital sectors due to increased advertising spending by major advertisers along with growth from non-affiliated advertisers," adding, "Accordingly, gross profit is expected to reach 1.255 trillion KRW and operating profit 234.1 billion KRW, representing increases of 6.5% and 12.6% respectively compared to the previous year."

Researcher Shin evaluated, "Despite global advertising agencies recording low growth within the 5% range, Cheil Worldwide continues to achieve double-digit performance growth, and the dividend yield is also estimated at around 3.9%."

However, due to the expansion of domestic and international economic uncertainties, temporary performance declines are also anticipated, leading to a downward revision of the target stock price from the previous 35,000 KRW to 30,000 KRW.

Researcher Shin explained, "The target price was lowered to adjust the divergence rate caused by the recent excessive stock price decline," adding, "This figure only removes the previously applied 10% premium."

This content was produced with the assistance of AI translation services.