[Edaily Reporter Kwon Oh Seok ] DS Investment & Securities announced on the 2nd that it is maintaining its “Buy” investment rating and target price of 300,000 won for CJ CheilJedang Corp(097950).

Jang Ji-hye, an analyst at DS Investment & Securities, explained, “The current stock price is at a historical low, and concerns about weak earnings have already been fully priced in. A stock price rebound is expected depending on the results of future business restructuring and financial restructuring.”
She added, “Strong earnings are expected in the second half of the year, led by the bio division. The bio division posted weak results in the second half of last year due to falling prices caused by intensifying competition in arginine and tryptophan and the resumption of Chinese lysine imports into Europe, so the base effect is low,” she noted. “On the other hand, the bio division is expected to continue its earnings recovery thanks to rising methionine prices in the second quarter and the spillover benefits from anti-dumping duties imposed on Chinese lysine in the U.S. and Brazil during the second half of the year.”
Analyst Jang emphasized, “Despite this strong performance in the bio business, there are concerns about declining profitability in the food business due to a strong exchange rate, rising grain prices, logistics costs, and overall inflationary pressures.” He added, “Amid global interest in K-Food, we expect long-term profitability to improve through the expansion of overseas operations focused on strategic products, business restructuring, and the expansion and streamlining of domestic and international production infrastructure.”
He projected that CJ CheilJedang Corp.’s second-quarter results would meet market expectations, with consolidated revenue of 7 trillion won (up 4% year-over-year) and operating profit of 278.9 billion won (down 9%).