[THE INVESTOR] CJ CheilJedang will advance in all business sectors this year, said KB Investment and Securities on May 14, maintaining a “buy” recommendation and raising the target price to 415,000 won (US$389.38) from 400,000 won.

Its first-quarter earnings were in line with the securities firm’s estimates with 210.3 billion won operating profit and 4.35 trillion won revenue, said analyst Park Ae-ran. Decline in sugar price, shrinking underperforming trading business, sharp growth of processed food at home and overseas, expanding sales of high-margin bio products, and rise in sales price of lysine propelled the earnings improvement, she explained.

Its operating profit this year except for pharmaceutical and logistics divisions will hike 28.4 percent on-year to 609.9 billion won, estimated the analyst.

The food business at home and overseas will continue to grow and it could further streamline its financial structure, said Park adding that its stock price will remain on an upturn.

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