[THE INVESTOR] CJ CheilJedang’s operating profit in the first quarter will be slower than expected, said KB Investment and Securities on March 23, lowering the target price to 400,000 won (US$370.30) from 450,000 won.

Dragged down by costs including maintenance, its operating profit will come in at 222 billion won, 9.9 percent lower than market consensus, said analyst Park Ae-ran. 

Exclusion of pharmaceutical business following the sale of CJ Healthcare and weak stock price of CJ Logistics are other main reasons for the lowered expectations, she added.

Considering that the earnings adjustment is within reasonable range and that offloading CJ Healthcare may improve its financial structure, its current stock price is attractive, said the analyst maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)