[THE INVESTOR] Cheil Worldwide’s 2016 operating profit will reach 137.4 billion won (US$120.98 million), the largest figure ever, Daishin Securities forecast on Oct. 25.
The advertising company reported 28.8 billion won operating profit in the third quarter, up 6.14 percent on-year, in a regulatory filing on Oct. 24. Its revenue rose 14.32 percent to 780.9 billion won, and net profit hiked 43.38 percent to 25.5 billion won on-year.
“Cheil Worldwide’s Q3 operating profit is significantly higher than market expectations except for the management analysis cost which is a one-off expense,” said Kim Hoi-jae, an analyst at Daishin.
“It is time to go beyond talks of its sale and consider its performance,” added the analyst. The advertising arm of Samsung Group has been holding talks with a Chinese real estate company and a homegrown large private equity fund manager since June.
“It is very likely that the company will put forth an aggressive growth strategy including merger along with the results from the management analysis,” said Kim forecasting 13 percent growth in operating profit in 2017.
By Hwang You-mee (
glamazon@heraldcorp.com)
