[Click eStock] "CJ CheilJedang Expected to Meet Q1 Earnings Expectations"

[Asia Economy Reporter Song Hwajeong] Daishin Securities maintained its 'Buy' rating and target price of 550,000 KRW for CJ CheilJedang on the 16th, expecting the company's Q1 earnings this year to meet expectations.

Daishin Securities estimated CJ CheilJedang's Q1 consolidated sales at 6.1516 trillion KRW and operating profit at 320.5 billion KRW. These figures represent increases of 6% and 16%, respectively, compared to the same period last year. Han Yujeong, a researcher at Daishin Securities, said, "Excluding logistics, sales are expected to increase by 4% year-on-year to 3.6083 trillion KRW, and operating profit is expected to rise 12% to 245.5 billion KRW, in line with Daishin Securities' previous estimate of 241.8 billion KRW and the market expectation of 247.2 billion KRW."

In the domestic food sector, despite a decline in export sales due to the establishment of a Japanese subsidiary, steady growth continues in key categories such as Hetbahn and dumplings. Researcher Han explained, "Sales of Lunar New Year gift sets this year are expected to grow in the mid-single digits compared to the same period last year, with domestic processed food sales estimated to increase by 3% to 822.3 billion KRW." Overseas processed food sales are expected to decline by 3% to 700.7 billion KRW at the U.S. subsidiary Schwans due to the weakening of the KRW-USD exchange rate. However, strong sales of dumplings and convenience foods in China, continued expansion of online channels, and double-digit growth in Japan despite the off-season due to expanded sales channels are expected to drive global food sales excluding Schwans to increase by 19% to 373.9 billion KRW. In the bio sector, despite rising raw material prices and increased logistics costs, prices of major feed additives such as lysine and tryptophan have risen, and sales are expected to increase by 9% to 741.4 billion KRW due to recovering demand for nucleotides in China.

Researcher Han said, "Due to improved profitability in domestic and overseas processed foods, food operating profit is expected to increase by 18% year-on-year to 136.8 billion KRW. Despite the base effect in Feed&Care, bio operating profit is estimated to increase by 5% to 108.7 billion KRW, supported by sustained high pork prices in Vietnam, a rebound in broiler prices in Indonesia, and increased prices of additives."

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