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(Photo = Yonhap news) |
[Alpha Biz=(Chicago) Reporter Paul Lee] Samsung Securities bought an investment opinion on Cheil Worldwide and maintained its target stock price of 25,000 won.
"The gross profit of consolidated sales in the first quarter is expected to rise 5.4 percent year-on-year to 382.7 billion won and operating profit rose 2.7 percent year-on-year to 54.8 billion won, which is expected to meet the consensus," Samsung Securities said. "The advertising business will not fully recover, but in addition to the base effect of the previous year, the volume of existing and newly developed non-affiliated advertisers will be added and external growth will be realized."
Overseas regions are performing better than in Korea, and digital volume such as dot-com and e-commerce seems to have increased. In the domestic advertising market, digital and outdoor advertising are expected to lead growth and recovery this year. Although the demand for advertisements through traditional media such as TV is slow to recover, non-media advertisements such as events and promotions are expected to perform well. Considering the time for new advertisers to contribute to profits in earnest, the schedule for the release of new products by major advertisers, and the schedule for hosting the 2024 Paris Olympics (July 26 to August 11), the company is expected to speed up earnings improvement at the bottom of the first quarter. Therefore, researcher Choi explains that it is expected to increase profits beyond the market this year.
"As of the end of last year, the ratio of treasury shares was high at 12% (13.76 million shares), so there is an opportunity to resolve undervaluation through the value-up program," Samsung Securities said. "According to the shareholder return policy in January last year, we will pay dividends within 60% of consolidated net profit."
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
