[Click eStock] "CJ Announces Olive Young IPO... Stock Price Likely to Rise This Year ↑"

[Asia Economy Reporter Kwon Jae-hee] Hana Financial Investment maintained its investment opinion of 'Buy' and target price of 130,000 KRW for CJ on the 28th.

CJ reported Q4 sales of 9.28 trillion KRW and operating profit of 369.3 billion KRW, up 14% and 9.2% respectively compared to the same period last year. However, due to poor performance from major subsidiaries caused by one-time expenses such as incentive payments, CJ's operating profit fell short of market expectations by about 30%.

Choi Jung-wook, a researcher at Hana Financial Investment, stated, "Although Q4 results fell below market expectations, the potential for CJ's stock price to rise this year is higher than ever."

The background for this is that listed subsidiaries hold a competitive edge in the market, and as an unlisted company, CJ Olive Young is expected to increase its equity value through an initial public offering (IPO), leveraging its overwhelming H&B market share to become a global platform.

Among other listed subsidiaries, CJ Logistics is building fulfillment capabilities based on increased parcel and port cargo volumes and high growth in e-commerce. CJ CheilJedang is expanding K-food channels and domestic and international sales routes for its main products. CJ ENM is expanding its business through overseas entries into Japan, Taiwan, and others. CJ CGV is normalizing theater operations and releasing anticipated films amid reopening expectations. CJ Freshway is expected to benefit from increased demand in the HMR market.

Researcher Choi analyzed, "CJ Olive Young, preparing for an IPO this year, was valued at about 1.8 trillion KRW by Glenwood PE in March last year, and when selecting underwriters in November, its expected corporate value was evaluated at 4 trillion KRW. If CJ Olive Young’s corporate value is fully recognized upon listing, the value of CJ’s stake in CJ Olive Young is likely to exceed the currently conservatively reflected 1.8 trillion KRW in the valuation."

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