CJ CheilJedang has been slow in the fourth quarter last year, said Kiwoom Securities on Feb. 9, lowering the target price to 460,000 won (US$420.59) from 500,000 won.
Its operating profit slid 4 percent on-year to 150.4 billion won, missing market expectations, as its food division underperformed and initial costs for taking over an overseas entity incurred, said analyst Park Sang-jun.
This year, though, the raw sugar unit price is stabilizing while the major amino acid market remains strong and higher margin products are increasing, the analyst noted. Its growth continues especially on the back of processed foods and this year’s profits will be better than 2017, added Park maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org