April 20, 2024

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[THE INVESTOR] Cheil Worldwide may not be able to meet market expectations in the first quarter due to the uncertainties based on the deteriorating relations between South Korean and China but it will recover, said Korea Investment and Securities on March 17.

The securities firm maintained a “buy” recommendation and 23,000 won (US$20.34) target price. 

Its revenue and gross margin in the first quarter will fall 2.1 percent and 2.6 percent on-year, respectively, and operating profit will inch up 0.7 percent, said analyst Choi Min-ha.

In the second quarter, however, gains from the new product launch of Samsung Electronics, its largest client, will be reflected and by the time political uncertainties will ease, forecast the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)