[Click eStock] "Cheil Worldwide, Current Timing Is a Buying Opportunity... Target Price Up 3.9%"

[Asia Economy Reporter Park Jihwan] Yuanta Securities on the 29th viewed Cheil Worldwide as a buying opportunity at the current price, upgrading its investment opinion to 'Buy' and raising the target price by 3.85% from the previous 26,000 KRW to 27,000 KRW.

Park Seongho, a researcher at Yuanta Securities, stated, "Despite a decrease in volume due to the global spread of COVID-19 in the fourth quarter of last year, the company showed resilient profits." On a consolidated basis, operating gross profit was 305.8 billion KRW and operating profit was 61.2 billion KRW, slightly below market expectations in terms of operating profit.

In particular, the rate of decrease in non-affiliated volume, which had continued double-digit declines year-over-year for three consecutive quarters since the first quarter, has eased to -3%, which is seen as a positive sign. Cheil Worldwide has set this year's management goals as achieving an organic growth rate of over 10%, growth through large mergers and acquisitions (M&A), and improvement in operating profit margin (OPM).

Currently, Cheil Worldwide's dividend yield has averaged 3.9% since the KOSPI stabilized in the 2000 range in June last year. Researcher Park Seongho forecasted, "The dividend per share (DPS) this year is expected to be 920 KRW," adding, "The dividend yield is expected to reach 4.6%, making the current stock price level quite attractive."

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