[Click eStock] "Cheil Worldwide Starts 1Q Strong... Future Investment Appeal Up"

[Asia Economy Reporter Kwon Jae-hee] IBK Investment & Securities on the 2nd upgraded its investment opinion on Cheil Worldwide to 'Buy' and raised the target price from 35,000 KRW to 37,000 KRW.

Cheil Worldwide's consolidated gross profit for the first quarter of this year was 334.9 billion KRW, and operating profit was 58.5 billion KRW, representing increases of 23.4% and 42.7% respectively compared to the same period last year. This marks the highest quarterly operating profit in history. The results reflect the combined expansion of performance in both affiliated and non-affiliated sectors due to the effects of new product launches and an increase in new advertiser volume, along with the expansion of the digital business share and steady growth in overseas regions including North America.

Looking at Cheil Worldwide's portfolio, balanced growth was achieved across all sectors. The headquarters' gross profit increased by 17.2% year-on-year to 76 billion KRW, and the consolidated subsidiaries' gross profit reached 258.9 billion KRW, achieving steep performance growth. The company's affiliated and non-affiliated gross profits accounted for 72% and 28%, respectively, with the digital business share at 33% for headquarters and 57% overseas, indicating continued digital transformation.

By region, the North American market's gross profit grew sharply by 63.1% year-on-year. Other overseas regions also recorded growth: China (25%), Europe (17.5%), Southeast Asia (25.2%), South Asia (24.3%), Latin America (24.2%), and the Middle East (20.5%).

Researcher Lee Hwan-wook of IBK Investment & Securities analyzed, "Cheil Worldwide has demonstrated excellent digital response capabilities every quarter, and with the expansion of new business areas through the Meta Formation initiative and expected enhancement of competitiveness through additional mergers and acquisitions (M&A), its investment attractiveness is expected to continuously rise."

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