[Click eStock] "CJ Freshway Achieves Record 1Q Performance Despite COVID-19 Customer Traffic Decline"

by Kwon Jaehee

Published 15 Apr.2022 08:52(KST)

[Click eStock] "CJ Freshway Achieves Record 1Q Performance Despite COVID-19 Customer Traffic Decline"

[Asia Economy Reporter Kwon Jae-hee] Hanwha Investment & Securities maintained its investment opinion of 'Buy' and target price of 60,000 KRW for CJ Freshway on the 15th.

Hanwha Investment & Securities forecasted that CJ Freshway's strong growth in operating performance would continue into the first quarter. The first-quarter sales are estimated at 597.7 billion KRW, and operating profit at 9.7 billion KRW. This represents increases of 9.5% and 206.8%, respectively, compared to the same period last year.

Nam Sung-hyun, a researcher at Hanwha Investment & Securities, stated, "CJ Freshway is expected to record its highest-ever performance in the first quarter," adding, "Although there was a temporary decline in customer footfall due to the sharp increase in COVID-19 cases, it is encouraging that the company still achieved solid results in the first quarter."

Researcher Nam further explained, "This is evidence of CJ Freshway's increased market share due to expanded order competitiveness, margin improvement from business unit adjustments, and stable operating performance from major clients."

CJ Freshway is also expected to achieve its highest quarterly performance in the second quarter. Hanwha Investment & Securities projected second-quarter sales of 629.1 billion KRW and operating profit of 25.4 billion KRW for CJ Freshway.

Researcher Nam analyzed, "With the seasonal peak entering, an increase in food ingredient distribution sales, expansion of clubhouse sales due to the start of the golf season, recovery in group meal service contributing more, and growth in sales from kids and hospital channels, strong performance is expected to continue into the second quarter."