April 20, 2024

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[THE INVESTOR] CJ CheilJedang will post higher earnings than expected in the fourth quarter, said DB Financial Investment on Dec. 18 maintaining a “buy” recommendation and 490,000 won (US$433.74) target price. 

Sales of processed food continue to grow while decline in manufacturing costs considerably boosted profits from bio sector. Nucleic acid, with 10 percent price rise and sales increase, will lift profitability of the bio sector while Selecta will remain solid during the high season, said analyst Cha Jae-heon.

However, it is likely to be burdened by rising price of ingredients including rice, which is adding approximately 10 billion won extra cost. As for materials department, despite wheat price rise, stabilizing raw sugar price and shrinking revenue from trading will keep the margin rate steady, he added. 

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