2Q26 miss with slipping food earnings

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 11, 2026 11:43 AM GMT

Morgan Stanley & Co. International plc, Seoul Branch+

CJ Cheil Jedang Corp | Asia Pacific

Kelly H Kim, CFA

Equity Analyst

2Q26 miss with slipping food

earnings

Jenna Lee

Equity Analyst

What’s Changed

CJ Cheil Jedang Corp (097950.KS)

From

To

Price Target

W230,000

W210,000

CJ Cheil Jedang Corp (097950.KS, 097950 KP)

AlphaSignals Earnings Reaction

S. Korea Consumer | S. Korea

Unchanged

Modest shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

CJCJ posted 2Q26 core-OP of W162bn, down 18% YoY. Albeit

healthy sales growth in key products and FX benefits, rising

marketing and logistics costs dragged food margins. Bio earnings

rebounded quickly QoQ on ASP hikes with fast margin recovery.

We cut our price target by 9% to W210,000.

Key Takeaways

Food sales rose 6% YoY on stable domestic proceed food sales (+4% YoY) and

improving overseas sales growth (+10% YoY), aided by favorable FX trends.

However, food OPM contracted to 2.5% (vs. 3.4% in 2Q25), reflecting higher

marketing investment in overseas markets and a surge in logistics costs.

Bio OP was W91bn (6.7% OPM), a sharp rise from W6bn in 1Q26, owing to the

commodity upcycle and higher production volumes.

We lower our OPM assumption for foods, reflecting 1) higher marketing costs as

the company focuses on overseas sales and 2) limited pricing power.

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 10, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (bn)

EV, curr (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

W210,000

2

W205,500

W254,000-172,600

15

W3,094

W14,659

W15

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

EPS (W)**

Prior EPS (W)**

EPS (W)§

Revenue, net (W bn)

EBITDA (W bn)

ModelWare net inc (W

bn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)

Leverage (EOP) (%)

12,064

23,353

29,452

2,950

182

23,918

27,282

24,286

29,734

2,912

360

31,204

34,276

28,943

31,031

3,162

470

35,520

38,493

36,453

32,307

3,299

535

17.2

…