[Edaily Reporter Hyera Lee ] On the 24th, SamsungSecurities assessed that CheilWorldwide(030000)is demonstrating its ability to defend earnings through business expansion despite conservative advertising spending by its largest advertiser, noting that investors should focus on the company’s mid- to long-term growth potential and increased shareholder returns.

In a report released that day, Choi Min-ha, an analyst at SamsungSecurities, stated, “In line with structural changes in the advertising industry, the company is transitioning from a traditional advertising agency to a ‘full-service marketing agency,’ continuously expanding its business scope and global reach,” adding, “It will secure mid- to long-term growth potential based on its integrated marketing capabilities.”
SamsungSecurities estimated CheilWorldwide’s second-quarter consolidated gross profit and operating profit at 4958억원 and 924억원, respectively. These figures represent year-over-year increases of 2.5% and 0.3%, respectively, and are in line with the lower end of market expectations.
Analyst Choi explained, “Even as major advertisers are managing their global advertising budgets conservatively, we believe the company has maintained its growth momentum through the expansion of its agency services.”
However, the firm expects operating profit to remain at last year’s level as restructuring costs for overseas subsidiaries and investments in future growth areas—such as artificial intelligence (AI) and data science—are factored in. Conversely, net profit is projected to show a relatively significant improvement due to a base effect stemming from last year’s foreign exchange losses.
The company’s business competitiveness is also assessed to be strengthening. Researcher Choi stated, “As demand from advertisers for brand experience (BX)-centric marketing has recently expanded, our scalability into non-media advertising areas—such as retail and offline—is increasing,” adding, “We are strengthening our ability to provide integrated marketing solutions that combine creative, media, strategy, digital, and experiential elements.”
He also highlighted the company’s ability to defend its earnings, backed by its global network, as a key strength. “The company is sustaining growth in major regions by strengthening local business capabilities and is expected to demonstrate stable earnings resilience based on its global network and business diversification,” he said. “The enhancement of marketing capabilities and operational efficiency through the integration of AI and digital technologies is expected to lead to improved profitability in the medium to long term.”
He also viewed the potential for expanded shareholder returns positively. “In accordance with the proposed amendments to the Commercial Act, we expect to cancel our treasury shares (12%),” he said, adding, “This is positive in terms of expanding shareholder returns.”