[Click eStock] "CJ CheilJedang to Surpass Market Expectations in Q4 Earnings"

Hana Financial Investment Issues 'Buy' Rating and 620,000 KRW Target Price... Closing Price on 21st at 376,500 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that CJ CheilJedang's fourth-quarter performance will exceed market expectations.

On the 22nd, Hana Financial Investment estimated CJ CheilJedang's fourth-quarter consolidated sales at 6.3535 trillion KRW and operating profit at 350.3 billion KRW. These figures represent increases of 6.6% and 29.8% respectively compared to the previous year.

Shim Eunju, a researcher at Hana Financial Investment, stated, "Domestic processed foods are expected to see balanced improvements in sales and operating profit due to early cold weather and the escalation of 'social distancing'. The cumulative sales for October to November are estimated to have grown double digits compared to the previous year. In particular, the online channel is understood to have grown by more than 50% compared to the same period last year. Regarding home meal replacements (HMR), the additional operation of the frozen pizza line is expected to contribute to sales growth." She added, "Overseas processed foods are also continuing high growth. The cumulative sales of 'Shuangzi' for October to November are understood to have grown by 10% compared to the previous year. Although the exchange rate is a key factor, the fact that steady growth continues is clearly positive."

The core business division's performance is also expected to trend upward next year. Hana Financial Investment estimates CJ CheilJedang's consolidated sales and operating profit for next year at 25.5903 trillion KRW and 1.5273 trillion KRW respectively, representing increases of 4.7% and 8.1% compared to the previous year.

Researcher Shim said, "The overseas proportion within food (ingredients + processed) is expected to rise significantly from 39% in 2019 to 48% next year," adding, "Especially from next year, channel and product synergies with Shuangzi are expected to be fully realized."

Hana Financial Investment has given CJ CheilJedang a 'Buy' investment rating with a target price of 620,000 KRW. The closing price on the 21st was 376,500 KRW.

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