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[Alpha Biz=(Chicago) Reporter Kim Jisun] CJ's stock price, which had fallen without knowing the bottom until the first half of this year, seems to rebound with a "V" shape thanks to improved performance by its subsidiary CJ Olive Young CJ CGV and others.
CJ closed at 99,500 won, up 3.54% from the stock market on the 20th. Stock price growth has reached 31.8% over the past two months. CJ Olive Young is the subsidiary that contributed the most to the rise in stock prices. CJ Olive Young posted cumulative sales of KRW 2.7971 trillion in the third quarter, up 39% from a year earlier. Considering that the growth rate of stores is only 3.9%, profitability has improved significantly due to changes in product composition and cost savings.
Another unlisted subsidiary, CJ Foodville, which suffered from a 10,000-year deficit, is also improving profitability.
BNK Investment & Securities raised CJ's target price by 37.4% from 91,000 won to 125,000 won. CJ's investment rating has also changed from 'holding' to 'buying'.
"The performance of CJ CheilJedang, a key subsidiary, is showing a clear recovery since the third quarter," said a researcher at Hana Securities. "Despite the worsening external environment, the scope of reverse growth in the food business, entertainment and media sectors has eased, and growth in the distribution sector seems to be maintained."
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
