Corporate Logo(source: cheil.com)
KB Securities raised its target price for Cheil Worldwide (030000) on July 28, citing expectations of expanded long-term shareholder returns alongside solid second-quarter results. The target price was increased from 24,000 won to 25,000 won.
Shares of Cheil Worldwide closed at 21,150 won on July 25, down 0.47% from the previous session.
Analyst Choi Yong-hyun commented, “Cheil Worldwide reported an operating profit of 92.1 billion won in the second quarter, up 4% year-on-year, in line with the market consensus of 92.6 billion won.” He explained that the non-affiliate business grew 10% year-on-year due to the addition of new advertisers in the food and beverage sector, while the affiliate business expanded 7% as digital-focused advertising continued.
Regionally, he noted that strong growth at subsidiary McKinney, along with the effects of recent mergers and acquisitions, contributed significantly to improved performance in North America.
However, he projected that third-quarter operating profit would decline by 3% year-on-year to 92.8 billion won, citing reduced marketing expenditures by major advertisers and seasonal weakness in the advertising industry.
Choi added, “Although net profit attributable to controlling shareholders dropped 26% in the first half due to one-off factors, we expect a recovery in the second half driven by a favorable base effect.” He also noted that “even if a stronger Korean won pressures net profit, the company is likely to maintain last year’s dividend per share (DPS) by increasing its shareholder return ratio.”
He concluded, “While our earnings estimates remain unchanged, Cheil Worldwide continues to be one of the most shareholder-friendly companies in Korea. Aligned with government policy, there is long-term potential for additional shareholder returns,” justifying the upward revision of the target price.
*[KOSPI] Cheil Worldwide(030000) is a Samsung-affiliated advertising agency that provides advertising and marketing solutions to domestic and global markets. The market capitalization is 2.485 trillion won (as of July 25, 2025, closing price).
Corporate Logo(source: cheil.com)
KB Securities raised its target price for Cheil Worldwide (030000) on July 28, citing expectations of expanded long-term shareholder returns alongside solid second-quarter results. The target price was increased from 24,000 won to 25,000 won.
Shares of Cheil Worldwide closed at 21,150 won on July 25, down 0.47% from the previous session.
Analyst Choi Yong-hyun commented, “Cheil Worldwide reported an operating profit of 92.1 billion won in the second quarter, up 4% year-on-year, in line with the market consensus of 92.6 billion won.” He explained that the non-affiliate business grew 10% year-on-year due to the addition of new advertisers in the food and beverage sector, while the affiliate business expanded 7% as digital-focused advertising continued.
Regionally, he noted that strong growth at subsidiary McKinney, along with the effects of recent mergers and acquisitions, contributed significantly to improved performance in North America.
However, he projected that third-quarter operating profit would decline by 3% year-on-year to 92.8 billion won, citing reduced marketing expenditures by major advertisers and seasonal weakness in the advertising industry.
Choi added, “Although net profit attributable to controlling shareholders dropped 26% in the first half due to one-off factors, we expect a recovery in the second half driven by a favorable base effect.” He also noted that “even if a stronger Korean won pressures net profit, the company is likely to maintain last year’s dividend per share (DPS) by increasing its shareholder return ratio.”
He concluded, “While our earnings estimates remain unchanged, Cheil Worldwide continues to be one of the most shareholder-friendly companies in Korea. Aligned with government policy, there is long-term potential for additional shareholder returns,” justifying the upward revision of the target price.
*[KOSPI] Cheil Worldwide(030000) is a Samsung-affiliated advertising agency that provides advertising and marketing solutions to domestic and global markets. The market capitalization is 2.485 trillion won (as of July 25, 2025, closing price).