[Click eStock] "CJ Daehan Tongun, Time to Prepare for Parcel Delivery Fee Increase"

[Asia Economy Reporter Eunmo Koo] There is an analysis that it is time for CJ Logistics to prepare for a parcel delivery fee increase.

CJ Logistics is preparing to raise parcel delivery rates this year. Due to the surge in volume benefiting from non-face-to-face transactions, the gap with competitors who lacked capacity expansion has sufficiently widened, and last year’s market share rose to 50%. On the other hand, the qualitative environment such as parcel delivery workers' treatment and service quality has not kept pace with the rapidly growing scale, which is now a problem.

Choi Go-woon, a researcher at Korea Investment & Securities, said in a report on the 13th, “This year, the parcel delivery industry does not have the luxury to compete on volume, but it is time to focus on profitability by raising rates again like in 2019. Especially, while CJ Logistics was the only one actively raising rates back then, now competitors and the government also agree on price normalization, so the profit improvement effect will appear faster than two years ago by minimizing shippers’ backlash and defection.”

There is an evaluation that this year’s stock momentum is diverse, including the sale of CJ Lokin and expansion of fulfillment. Researcher Choi said, “While rate increases are the most important criterion in transportation stock investments, CJ Logistics’ stock price is stagnant, reflecting only the negative effects of rapid scale growth similar to early 2019. Now, ahead of the Q4 earnings announcement last year, it is time to prepare for parcel delivery rate increases.”

He also expected various stock momentum this year. Researcher Choi analyzed, “The sale of China CJ Lokin is progressing faster than expected, with a valuation of over 1 trillion won. In the mid-to-long term, the expansion of fulfillment cooperation with Naver should also be noted as momentum that will change the e-commerce industry landscape.”

This content was produced with the assistance of AI translation services.