[Click eStock] "Hanjin, Increased Cargo Volume Due to COVID-19... Expecting Profit Improvement"
[Asia Economy Reporter Park Jihwan] Hi Investment & Securities forecasted on the 19th that Hanjin's parcel delivery division will see a significant improvement in profitability due to increased cargo volume caused by COVID-19. Accordingly, they maintained a 'Buy' investment rating and a target price of 39,700 KRW.
Researcher Lee Sangheon of Hi Investment & Securities stated, "Due to the impact of COVID-19, orders for daily necessities and food through online channels have increased, leading to a sharp rise in volume since last month," adding, "The current clear upward trend suggests that the profit leverage effect in the parcel delivery division could be substantial." In particular, since over 40% of total sales come from the parcel delivery division, the profit increase from sales growth is expected to contribute to overall profitability improvement.
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Researcher Lee Sangheon explained, "Starting this year, 285 billion KRW will be sequentially invested over three years to expand the Daejeon parcel terminal," and added, "The processing capacity of the Daejeon hub, currently at 700,000 boxes per day, will be expanded to 1.5 million." He emphasized, "Through this investment, cooperation with distribution companies on fulfillment services can be materialized."
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