[Click e-Stock] "Cheil Worldwide, Strong Investment Points in Terms of Shareholder Returns"

On March 31, DB Financial Investment announced that Cheil Worldwide maintains strong investment appeal from a long-term perspective and in terms of shareholder returns, reiterating its target price of 26,000 won and a 'Buy' investment rating.

Cheil Worldwide recently disclosed a corporate value enhancement plan, stating that it will maintain a dividend payout ratio of around 60% based on consolidated net income. Reflecting this, the expected dividend yield based on the current share price is 7%, making its high dividend attractiveness valid, and the company is also expected to proceed with treasury stock cancellation.

For the first quarter of this year, gross profit is expected to increase by 2.8% year-on-year to 445.4 billion won, while operating profit is projected to decline by 19.5% to 47.1 billion won, falling short of market expectations. This is estimated to be due to the reflection of more than 10 billion won in one-off personnel expenses, including compensation costs related to workforce optimization in Europe and China, as well as investment in artificial intelligence (AI) talent.

DB Financial Investment stated, "From the second quarter, profit normalization is expected," adding, "Although the recovery in sentiment among domestic non-affiliated advertisers remains unclear, topline growth is anticipated to be driven by expansion in the Americas and entry into new regions such as Africa."

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