[Alpha Biz= Paul Lee] Seoul, October 14 — KB Securities maintained its “Buy” rating on CJ CheilJedang but trimmed its target price from ₩310,000 to ₩300,000, noting solid performance in the food division but continued weakness in the bio segment for the third quarter.


In its latest report, KB projected CJ CheilJedang’s consolidated Q3 2024 revenue at ₩7.59 trillion, up 2.3% year-on-year, while operating profit is expected to decline 11.4% to ₩368.8 billion, falling short of market consensus.


The decline in profitability stems primarily from reduced demand and margins in the company’s bio business. KB estimated the bio division’s operating profit would drop 51.5% year-on-year, citing increased lysine supply in Europe, intensified competition for high-margin amino acids such as tryptophan, and a quarterly decline in sales from SPC (specialty products and cultures).


In contrast, the food division is projected to maintain stable year-on-year revenue, supported by steady domestic sales.


Analyst Ryu Eun-ae commented, “While the domestic food business remains resilient, the bio division’s performance is likely to fall below expectations due to oversupply and intensified price competition.”


KB also noted that CJ CheilJedang’s recent sale of its Feed & Care (F&C) animal feed subsidiary would help streamline operations and strengthen its financial structure, marking a strategic shift toward food-centered growth.

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]