May 02, 2024

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[THE INVESTOR] Cheil Worldwide will show strong earnings in the first quarter due to its overseas business, said HI Investment and Securities on April 12, maintaining a “buy” recommendation and 27,000 won (US$25.31) target price. 

Its gross profit will rise 10.4 percent on-year to 235.6 billion won and operating profit by 15.1 percent to 26.8 billion won. Although growth at home has been slow, overseas business, which accounts for over 70 percent of its revenue, has grown across regions, said analyst Kim Min-jeong. 

The advertising industry has been struggling in the domestic market, but it accounts for a much lower share of its overall earnings. The discount of its stock will be eliminated considering that new business areas are expanding while spending on ads for conventional media declines, she added.

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