[Click eStock] "Cheil Worldwide Expected to Maintain Strong Performance in Second Half"

[Asia Economy Reporter Hwang Yoon-joo] Samsung Securities forecasted on the 5th that Cheil Worldwide will continue to deliver strong performance in the second half of the year, supported by structural improvements. The investment opinion 'Buy' and the target price of 34,000 KRW were maintained.

Minha Choi, a researcher at Samsung Securities, stated, "Operating profit for the third quarter is expected to be 89.8 billion KRW, a 28.0% increase compared to the same period last year, exceeding consensus by 10%."

Researcher Choi explained, "Compared to the second quarter, which is traditionally one of the peak seasons, profits will increase due to growth in e-commerce and retail volumes. Not only domestically but also globally, the expansion of digital content production volumes will continue strong growth in North America, Latin America, and Southeast Asia."

Researcher Choi also anticipated that in the fourth quarter, operating profit will increase by 37%, boosted by a base effect from one-time labor costs reflected in the same period last year.

He analyzed, "Considering the completely transformed profit structure, the stock remains significantly undervalued. While operating profit is expected to increase by 31% in 2022, the price-to-earnings ratio (PER) for this year is only 11.8 times."

He added, "In response to market changes, the company has expanded its scope from simple media agency services to dot-com services, live commerce, and performance marketing, which will enable differentiated profit growth even in an unfavorable business environment."

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