[Click eStock] "Cheil Worldwide Sees Growth in Overseas Digital Advertising Volume"

On November 3, DB Securities stated that although the domestic advertising industry remains sluggish, Cheil Worldwide is expected to maintain solid earnings growth in the fourth quarter of this year, supported by a favorable base effect compared to the previous year. The brokerage maintained its "Buy" investment rating and a target price of 26,000 won.

In the third quarter, Cheil Worldwide reported a gross profit of 457.4 billion won (up 6.8% year-on-year) and an operating profit of 95.9 billion won (up 0.3%), meeting market expectations (operating profit of 93.3 billion won). The parent company's gross profit increased by 4.4%, surpassing expectations of negative growth.

Shin Eunjeong, a researcher at DB Securities, said, "It is estimated that the inclusion of new advertisers and the focus on digital campaigns by major advertisers, especially in dot-com sectors, contributed positively to the results." She explained, "Despite weak performance in Europe (-4.2%) and China (-6.0%), overseas gross profit grew by 7.4%, driven by strong digital advertising volume in most regions, including North America (+27.4%) and Southeast Asia (+21.7%)."

For the fourth quarter of this year, the domestic advertising market is still subdued, but performance is expected to remain sound. Shin forecasted, "The company's headquarters will benefit from a low base last year, and major advertisers are likely to continue spending, particularly in retail and dot-com sectors." She added, "Overseas, gross profit is projected to grow by 7.2% as the company expands in the Americas, where captive volumes remain high, and in non-affiliated agency markets."

The annual dividend per share (DPS) for this year is estimated at 1,250 won. Based on the recent share price, the dividend yield stands at approximately 6.1%. The company also holds 12% of its own shares, raising expectations for continued shareholder-friendly policies.

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