Business · Companies · 2 hrs ago
DS Investment Cuts CJ Freshway Price Target as Profit Forecast Falls
DS Investment cut its target price for CJ Freshway from 50,000 won to 40,000 won, while keeping its buy rating.
The brokerage expects third-quarter operating profit to fall 32% from a year earlier, to 23 billion won, below market expectations.
CJ Freshway is a South Korean food-service and food-distribution company, and its business-to-business online marketplace is called Sikbom.
Sikbom's transaction volume topped 100 billion won in the quarter, but investment in online growth and the platform weighed on profits.
The analyst expects the online investments to begin paying off in 2027, with more sales and stronger platform competitiveness.
A new logistics center is expected to be completed next year, which the analyst says could support growth and improve cost efficiency.
The brokerage says stronger online sales and profitability could later support a higher valuation for CJ Freshway.
DS Investment & Securities cut its price target for CJ Freshway to 40,000 won from 50,000 won, while maintaining its buy rating.
Analyst Jang Ji-hye forecast third-quarter operating profit of 23 billion won, below the market expectation of 29.5 billion won.
She estimated third-quarter revenue would rise 7% year on year to 962.8 billion won, while operating profit would fall 32%.
The brokerage attributed the expected profit decline to higher investment costs for online sales growth and the Sikbom platform.
Jang said those investments could support growth in 2027, alongside the planned completion of an Icheon logistics center.
- Who
- DS Investment & Securities cut its price target for CJ Freshway. Analyst Jang Ji-hye made the forecast.
- What
- The brokerage lowered its target price to 40,000 won from 50,000 won and kept its buy rating.
- When
- The report was published on October 15, 2026.
- Where
- South Korea.
- Why
- DS Investment & Securities lowered its earnings estimates and its target valuation multiple amid expected investment-related costs.
This story does not have two clearly opposing sides.
Sikbom's gross merchandise volume was 55.7 billion won.
Sikbom's gross merchandise volume rose to 65.3 billion won.
Sikbom's gross merchandise volume reached 86.1 billion won.
Jang forecast CJ Freshway operating profit of 23 billion won, below the 29.5 billion won market expectation.
Jang said returns from online food distribution investments were expected, and an Icheon logistics center was due to be completed.
- New price target
- 40,000 won, down from 50,000 won
- Rating
- Buy, maintained
- Third-quarter revenue forecast
- 962.8 billion won, up 7% year on year
- Third-quarter operating profit forecast
- 23 billion won, down 32% year on year
- Market operating profit expectation
- 29.5 billion won
- Sikbom third-quarter gross merchandise volume
- More than 100 billion won
1 source
What people are saying
CJ Freshway is making proactive investments to lead the online industrialization of the food distribution market and expand its market share.
If the company's expanding online platform competitiveness is reflected not only in sales growth but also in improved profitability, we expect a valuation re-rating.