Corporate Logo(source: cjnews.cj.net)
Shinhan Securities stated on July 8 that it expects earnings at CJ CheilJedang (097950), a leading food and bio company, to improve in the second half of the year, viewing the recent share price correction as an attractive buying opportunity.
Shinhan Securities maintained its “Buy” rating and target price of 340,000 won.
In a report released the same day, analyst Cho Sang-hoon projected second-quarter revenue and operating profit at 7.32 trillion won and 352.1 billion won, respectively. The forecasted operating profit falls approximately 6% below market consensus.
Cho explained, “Despite a challenging base, the bio and feed ingredient segments are expected to hold up relatively well. However, weaker performance in the domestic and overseas food businesses is likely the main factor behind the company’s overall earnings decline.”
He added that earnings are expected to follow a “low in the first half, high in the second half” trajectory, supported by a recovery in processed food sales at home and abroad, price increases for key products, easing cost pressures, and enhanced competitiveness in core businesses.
“Given that the current share price reflects only the weak first-half performance, we believe the recent correction offers a timely buying opportunity,” he said.
Cho also noted that CJ CheilJedang is relatively insulated from U.S. tariff risks, which is another positive factor.
“CJ CheilJedang has already established regional production bases for both its food and bio operations, limiting its exposure to tariff concerns,” he explained. “In the U.S., 95% of food demand is met through local production, with only 5% reliant on exports.”
*[KOSPI]CJ(001040) is a lifestyle and culture group that holds stakes in 9 subsidiaries including CJ CheilJedang, CJ ENM, and a total of 76 affiliate companies. It operates across four major business sectors: Food & Food service, Biotechnology, Logistics & New Distribution, and Entertainment & Media. The market capitalization is 3.951 trillion won(as of July 7, 2025, closing price).
Corporate Logo(source: cjnews.cj.net)
Shinhan Securities stated on July 8 that it expects earnings at CJ CheilJedang (097950), a leading food and bio company, to improve in the second half of the year, viewing the recent share price correction as an attractive buying opportunity.
Shinhan Securities maintained its “Buy” rating and target price of 340,000 won.
In a report released the same day, analyst Cho Sang-hoon projected second-quarter revenue and operating profit at 7.32 trillion won and 352.1 billion won, respectively. The forecasted operating profit falls approximately 6% below market consensus.
Cho explained, “Despite a challenging base, the bio and feed ingredient segments are expected to hold up relatively well. However, weaker performance in the domestic and overseas food businesses is likely the main factor behind the company’s overall earnings decline.”
He added that earnings are expected to follow a “low in the first half, high in the second half” trajectory, supported by a recovery in processed food sales at home and abroad, price increases for key products, easing cost pressures, and enhanced competitiveness in core businesses.
“Given that the current share price reflects only the weak first-half performance, we believe the recent correction offers a timely buying opportunity,” he said.
Cho also noted that CJ CheilJedang is relatively insulated from U.S. tariff risks, which is another positive factor.
“CJ CheilJedang has already established regional production bases for both its food and bio operations, limiting its exposure to tariff concerns,” he explained. “In the U.S., 95% of food demand is met through local production, with only 5% reliant on exports.”
*[KOSPI]CJ(001040) is a lifestyle and culture group that holds stakes in 9 subsidiaries including CJ CheilJedang, CJ ENM, and a total of 76 affiliate companies. It operates across four major business sectors: Food & Food service, Biotechnology, Logistics & New Distribution, and Entertainment & Media. The market capitalization is 3.951 trillion won(as of July 7, 2025, closing price).