[Click eStock] "CJ Benefits from North America K-wave... Target Price Raised to 160,000 Won"

Listed Subsidiary Stock Price Rise Reflects Olive Young Value Increase
Outstanding Q1 Performance... Operating Profit Up 75% YoY
"No Major Changes in Governance Restructuring Expected in Short Term"

Hana Securities analyzed on the 27th, following CJ's corporate presentation (NDR), that CJ is benefiting from the K-wave in North America. They maintained a 'Buy' investment rating and raised the target price by 14% from the previous 140,000 KRW to 160,000 KRW. CJ closed at 141,000 KRW on the previous trading day.

Choi Jung-wook, a researcher at Hana Securities, stated, "The target price increase reflects the rise in stock prices of listed subsidiaries and the increased value of Olive Young. Although the private equity firm Glenwood PE is selling 22.6% of its stake in Olive Young, raising the possibility of a governance restructuring, the likelihood of significant changes in the short term is low. Investors should focus on other investment points such as the additional growth potential of the subsidiaries."

The CJ Group recorded outstanding performance in the first quarter. Thanks to the strong results of CJ CheilJedang and CJ ENM, the consolidated operating profit for Q1 reached 576.2 billion KRW, a 74.9% increase compared to the same period last year, exceeding expectations by 8.7%. Researcher Choi explained, "This was mainly due to the reflection of CJ CheilJedang's Lunar New Year gift set sales, growth in North American sales and improved cost ratios, expansion of CJ ENM's delivery services and increase in TVING subscribers, as well as growth in mobile live commerce. CJ CGV also maintained a profit trend for the fourth consecutive quarter, supported by recovery in Southeast Asia and the T?rkiye markets, but CJ Freshway turned to a loss due to hospital strikes."

In particular, Olive Young saw a significant increase in foreign sales due to the continuous growth in domestic sales and the rise in the number of foreign arrivals. Offline sales increased by 34% compared to the same period last year, while online sales grew by 20%. Olive Young is strengthening its global strategy by operating online malls in China, Japan, and the United States.

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