CJ Cheil Jedang Corp: Risk Reward Update

研报英文原文证据摘录

CJ Cheil Jedang Corp: Risk Reward Update

UpdateM

RiskRisk RewardReward– CJ Cheil- CJJedangCheilCorp (097950.KS)Jedang Corp (097950.KS)

Food profitability needs to improve

PRICE TARGET W230,000 EQUAL-WEIGHT THESIS

Base-case scenario value, derived from a residual income (RI) model. In our RI model, we ▪Both sales growth outlook and

apply a cost of equity of 8.55% (risk-free rate of 4.0%, market risk premium of 6.5% and beta profitability trends look uninspiring - MSD%

of 0.7) and a terminal growth rate of 1.5%. At our price target, the implied P/E multiple is 8x top-line growth with moderate margin

our NTM EPS estimate. improvement for foods.

earnings look volatile with rising W278,133 ▪Bio

competition from Chinese players in major

Consensus Price Target Distribution W230,000.00 W310,000.00 products. As current OPM is too low (<1% in MS PT

1Q26), there would be QoQ marginSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

recovery. But external factors (commodity

prices and competition) are driving its

earnings cycle with low visibility on margin

RISK REWARD CHART trajectory.

▪CJCJ stock is trading near its five-year

historical low valuation with limited

KRW downside.

could turn positive on CJCJ upon W300,000W300,000(+35.44%)W300,000(+35.44%)(+35.44%) ▪We

320000 seeing: 1) stronger commitment to domestic

margin improvement; 2) revamping overseas

sales growth; and 3) any restructuring

efforts. 240000

W221,500W221,500W221,500 W230,000W230,000(+3.84%)W230,000(+3.84%)(+3.84%)

Consensus Rating Distribution

W170,000W170,000(-23.25%)W170,000(-23.25%)(-23.25%) 80% Overweight

20% Equal-weight

0% Underweight

MS Rating

0 Source: Refinitiv, Morgan Stanley Research

MAY '25 NOV '25 MAY '26 MAY '27

Key: Historical Stock Performance Current Stock Price Price Target