CJ Cheiljedang - Korean Food Goes Global

In this insight, we discuss CJ Cheiljedang (097950 KS)'s 4Q 2020 and 2020 full year results and how this company is becoming one of the chief beneficiaries of Korean food going global.

CJ Cheiljedang (097950 KS) has benefited from a combination of improving earnings and higher valuation multiples. The company's shares have an average P/E and P/B of 17.4x and 1.3x, respectively. The company's current P/E and P/B valuation multiples in 2021 are currently 28% and 14% below the historical average valuation multiples of the company from 2015 to 2020.

One could argue that the company's valuation multiples should be higher than the historical average which would result in higher implied valuations for CJ Cheiljedang. The company's Bibigo branded foods (such as dumplings), sauces, and other food products are becoming more popular in many key countries such as in the U.S., China, and Japan.