By Kwanwoo Jun
CJ CheilJedang Corp.’s shares rallied Tuesday after posting robust outcomes, as market analysts remained upbeat about its earnings outlook.
Shares within the South Korean meals firm jumped 7.6% to 406,000 received ($318.42) in early afternoon buying and selling. The inventory market’s benchmark Kospi was 0.9% decrease.
CJ CheilJedang after the market closed Monday mentioned its first quarter income hit a quarterly report of KRW6.980 trillion whereas web revenue rose 13% on yr to KRW247.87 billion. That was effectively above market consensus forecasts, together with a FactSet estimate for web revenue of KRW172.17 billion.
The agency’s robust first-quarter outcomes have been largely pushed by its bio-additive phase, which produces amino acids and soy-protein concentrates extensively utilized in meals and animal-feed merchandise.
CJ CheilJedang efficiently handed on rising raw-material costs to clients and targeted on high-end bio merchandise to spice up its earnings, DS Funding & Securities analyst Jang Ji-hye mentioned in a analysis notice Tuesday.
Ms. Jang was bullish on the corporate’s dominant market presence and aggressive edge within the bio enterprise. She raised the inventory’s goal worth by 6.5% to KRW490,000.
Kiwoom Securities analysts S.J. Park and M.G. Tune mentioned in a notice they anticipate the corporate to proceed to learn from increased costs for amino acids and soy-protein concentrates within the second quarter. They raised the inventory’s goal by 5.7% to KRW560,000.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
