[Click eStock] "CJ, Focus on Olive Young's Value... Target Price Up"

On the 13th, IBK Investment & Securities raised the target price for CJ from 100,000 KRW to 130,000 KRW, maintaining a 'Buy' rating.

CJ's consolidated sales last year increased by 18.7% compared to the previous year, and operating profit rose by 14.5%. Except for CJ ENM, which saw a 53.7% decline in operating profit due to sluggish advertising revenue and increased content production costs, most of the consolidated subsidiaries showed improved performance. In particular, the performance improvement of the unlisted subsidiary CJ Olive Young stood out. CJ Olive Young recorded sales of 2.7775 trillion KRW and operating profit of 274.5 billion KRW, increasing by 31.7% and 97.5% respectively compared to the previous year. Offline sales recovered following the easing of social distancing measures after online sales, and profitability also improved. CJ Foodville, which had been continuously operating at a loss excluding one-time factors from asset sales, achieved significant performance improvements with sales increasing by 19.2% and both operating profit and net profit turning positive.

Since the end of last year, while the stock price of the holding company CJ showed strength, its subsidiaries experienced weakness. IBK Investment & Securities interpreted this as a result of investors' focused interest on the unlisted subsidiary CJ Olive Young.

Kim Jang-won, a researcher at IBK Investment & Securities, stated, "It seems reasonable to value the unlisted subsidiary CJ Olive Young higher, and there is still ample time to pay attention to the holding company. Although the somewhat slow reaction speed is a consequence of the rapid stock price movement over the past four months, I believe the upward momentum has neither been damaged nor disappeared."

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