Cheil Worldwide stock faces lower target after weak Q3 profit

Published on 11/10/2026 at 03:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Cheil Worldwide stock faces a lower target after weak third-quarter profit. Meritz kept its Buy rating as regional growth offset part of the decline.

Cheil faces weaker advertising demand

Meritz Securities kept its Buy rating while lowering its price target after third-quarter operating profit missed market expectations.
North America and Latin America grew, partly offsetting declines in China and the Middle East.
Cheil plans further treasury-share cancellations and intends to maintain a 60 percent dividend payout ratio.

Cheil, KR7030000004, Illustration mit AI erstellt.

Meritz Securities cut its price target for Cheil Worldwide on November 10, 2026, after the advertising agency reported weaker third-quarter results. The brokerage lowered its target from KRW 26,000 to KRW 23,500 but maintained its Buy rating, according to The Asia Business Daily.

Profit pressure reaches key markets

Cheil Worldwide's third-quarter operating profit fell 19.7 percent year over year to KRW 77 billion. Gross profit declined 6.4 percent to KRW 428.1 billion as the advertising recovery remained delayed and major clients controlled marketing spending.

Regional performance was mixed. Gross profit fell 16.5 percent in China and 25.2 percent in the Middle East, while North America edged up 0.1 percent and Latin America gained 7.6 percent. Meritz expects operating profit to decline 15.5 percent to KRW 284.6 billion in 2026 before rising 6.5 percent to KRW 303.1 billion in 2027.

Shareholder returns remain in focus

Cheil canceled all treasury shares held on October 15, equal to 12 percent of previously issued shares and valued at KRW 282.8 billion on a book-value basis. The company plans to repurchase and cancel another KRW 140 billion of treasury shares by the end of September 2027.

Meritz expects the year-end dividend per share to reach KRW 1,300 and projects a 6.4 percent dividend yield. Cheil has also said it will maintain a 60 percent dividend payout ratio based on consolidated net income.

Cheil operates across global marketing

Cheil Worldwide is a South Korean global marketing agency headquartered in Seoul. It provides strategic planning, creative development, media management, digital marketing, social media, events, exhibitions, sports engagements and retail promotions.

The company operates in the advertising-agency sector alongside global networks such as WPP and Publicis. Cheil is differentiated by its South Korean base, its Samsung-related heritage and its focus on integrated digital and experiential marketing across international markets.