[Click eStock] "Cheil Worldwide, Recovering Earnings, Stable Dividends... Target Price Up 19%"

[Asia Economy Reporter Ji-hwan Park] NH Investment & Securities on the 14th maintained a buy rating on Cheil Worldwide, expecting net growth in operating profit for the third quarter this year and a dividend yield of around 3.9%. The target price was raised by 19.2% from the previous 26,000 KRW to 31,000 KRW.

Researcher Hwa-jeong Lee of NH Investment & Securities stated, "With the easing impact of the novel coronavirus disease (COVID-19), the decline in sales is slowing down and the trend of reducing selling and administrative expenses continues, leading to expected net growth in operating profit," adding, "A dividend yield of around 3.9% is also anticipated."

Lee also noted, "Cheil Worldwide's consolidated operating profit for the third quarter is expected to be 58.1 billion KRW, marking a net growth turnaround with a 10% increase compared to the previous year and slightly exceeding market expectations."

It is analyzed that a harmony between sales recovery and cost efficiency has been established. Researcher Hwa-jeong Lee explained, "They hold a stable captive market, and with the digitalization of marketing for this captive, they have entered a performance recovery phase," adding, "Strengthening digital capabilities and expanding business scope also highlight mid- to long-term growth drivers."

Additionally, "Due to COVID-19 responses, an optimized labor cost structure and travel restrictions are expected to result in cost savings in areas such as travel expenses and training costs," she added.

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