[Click eStock] CJ CheilJedang, Consistent Performance Improvement Maintains 'Buy' Recommendation

[Asia Economy Reporter Lee Seon-ae] Kiwoom Securities announced on the 9th that it maintains a buy rating and a target price of 610,000 KRW for CJ CheilJedang due to expectations of improved earnings.

CJ CheilJedang's consolidated operating profit for the fourth quarter of last year was 296.6 billion KRW, slightly below market consensus, but considering the effect of increased incentives, it is generally judged to be in line with market expectations. Accordingly, the existing key investment points of 'improvement in processed food segment performance' and the possibility of 'upward revision of earnings estimates for the bio business segment due to the boom in the amino acid industry' are still considered valid.

Park Sang-jun, a researcher at Kiwoom Securities, stated, "As the performance improvement of the processed food segment continues, and the boom in the amino acid segment continues due to the increase in pig farming numbers in China and the recovery of the dining-out market, the earnings estimates for the bio business segment are expected to be gradually revised upward."

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