[Click eStock] "CJ Expected to Benefit from Korea-Japan Travel Boom and Commercial Act Amendment"

On November 20, Hana Securities predicted that CJ would experience significant growth in the fourth quarter, benefiting from the so-called "Korea-Japan travel boom" resulting from recent tensions between China and Japan. The company maintained its "Buy" investment rating and a target price of 210,000 won.

Choi Jungwook, a researcher at Hana Securities, explained, "The fourth quarter includes the Olive Young sale, Black Friday, and Christmas. Given the recent tensions between China and Japan, Korea, as a neighboring country, is likely to benefit from increased travel between Korea and Japan, which could lead to a substantial increase in fourth-quarter sales."

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Choi also stated, "Although there are concerns about additional sales growth in 2026, the remarkable growth rate of online sales continues. If we see a visible increase in inbound sales from Chinese consumers and global performance resulting from expansion into both online and offline channels in the United States, sales growth could exceed market expectations."

Choi anticipated that CJ would also benefit significantly from the third amendment to the Commercial Act, which is expected to include a mandatory share buyback and cancellation policy.

He noted, "The amendment to the Commercial Act applies to both listed and unlisted companies. CJ currently holds 7.3% of its common shares as treasury stock, while Olive Young holds 22.6%. CJ could benefit not only from the primary effect of canceling its own treasury shares but also from the secondary effect of increased per-share value resulting from Olive Young's treasury share cancellation, leading to a significant benefit overall."

He added, "In particular, the cancellation of Olive Young's treasury shares could raise expectations for restructuring the governance structure, which is expected to have a positive impact on the stock price."

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