IBK Investment Securities analyzed on the 16th that CJ Freshway's fourth-quarter earnings will shift to a growth trend due to an increased share of sales toward franchises and the efficiency of fixed costs such as labor costs. The investment opinion and target price were maintained at "buy" and 48,000 won, respectively. The closing price from the previous trading day was 17,070 won.
Research Institute Nam Sung-hyun noted, "CJ Freshway has a high potential for growth starting in the fourth quarter of this year due to the expansion of Fresh Plus's production capacity and the increase in the share of sales toward franchises," adding that "Business-to-business (B2B) purchases of food ingredients through online channels are also increasing, which is positive."
Research Institute Nam added that the efficiency of fixed costs is also a factor in the improvement of fourth-quarter earnings. He projected, "As the gradual recovery of sales and the efficiency of labor and logistics costs become more pronounced, profitability improvements will appear more quickly."
IBK Investment Securities predicted that CJ Freshway's fourth-quarter revenue and operating profit would be 827.6 billion won and 25.6 billion won, respectively. This represents an increase of 5% and 5.1% compared to the same period last year. Research Institute Nam stated, "Considering CJ Freshway's earnings capacity of 166.6 billion won this year, the attractiveness of its undervalued stock price will be more pronounced."