[Click eStock] "Cheil Worldwide Forecasts Record High Operating Profit in Q3"

[Asia Economy Reporter Jihwan Park] Samsung Securities maintained a 'Buy' investment rating and a target price of 30,000 KRW for Cheil Worldwide on the 1st, expecting the highest-ever operating profit in the third quarter.

Minha Choi, a researcher at Samsung Securities, stated, "Cheil Worldwide's gross profit in the third quarter is expected to reach 317.5 billion KRW, a 14.0% increase compared to the previous year," adding, "Operating profit is anticipated to rise 15.1% to 68.4 billion KRW, surpassing the market expectation of 66.0 billion KRW." It is expected to record the highest-ever operating profit in the third quarter and continue a steady profit growth trend.

With expanded captive marketing for mobile phones and households, digital content production is also on the rise, leading to favorable performance expectations. Overseas, North America is leading the expansion, and Europe, which returned to growth last quarter, is expected to further improve its performance. Researcher Choi noted, "The increase in non-affiliated advertising volume is actively progressing in North America, Europe, and China," and added, "Due to hiring focused on the digital sector, the proportion of labor costs is expected to be higher than the previous quarter." The gross profit growth rate is projected at 11% for headquarters and 15% for overseas subsidiaries.

North America, which showed remarkable growth in the first half of the year, is expected to maintain high growth next year and actively respond to the growing market demand through strengthening capabilities in the digital sector.

Researcher Choi said, "With an increase in digital volume, expansion of major advertiser agency areas, and active development of non-affiliated volume, solid performance improvement will continue," adding, "In Europe, centered on the subsidiary Iris, and in China, ahead of the 2022 Beijing Winter Olympics, efforts are being made to expand both affiliated and non-affiliated advertising, so steady performance improvement is expected next year as well."

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