[Click eStock] "CJ Daehan Tongun, Full Effect of Price Increase Expected in Second Half"

[Asia Economy Reporter Park Jihwan] Ebest Investment & Securities evaluated on the 9th that the effect of parcel delivery price increases in the second half of the year for CJ Logistics is expected to become more apparent and drive performance in line with continued e-commerce growth. The investment opinion 'Buy' and target price of 230,000 KRW were maintained.

Researcher Orin Ah from Ebest Investment & Securities stated, "The effect of the price increase is emerging, with second-quarter sales rising 3.7% year-on-year to 2.7472 trillion KRW, and operating profit increasing 8.0% to 90.6 billion KRW, slightly below market expectations."

Sales in the parcel delivery segment increased by 11% compared to a year ago to 865.9 billion KRW, and operating profit rose 10.3% to 52.5 billion KRW. Researcher Oh said, "Despite the burden of trunk line and subcontracting costs and the deployment of sorting support personnel following the 214 KRW price increase implemented since April this year, the operating profit margin of the parcel delivery segment recorded 6.1%," adding, "Despite the price increase, the parcel delivery volume in the second quarter was 429 million boxes, a 1.3% increase from last year, showing solid defense."

Despite the price increase impact in the second half, parcel delivery volume is expected to continue high single-digit growth. Competitors are also planning price increases, and due to insufficient capacity in the market, customer churn caused by price increases is stabilizing. Orders from Naver Brand Store increased to 1 million boxes per month as of the end of June, and customer acquisition and orders are expected to accelerate in the second half of the year.

Researcher Oh forecasted, "The effect of the parcel delivery price increase is clearly emerging," and "It is expected to drive performance in line with continued e-commerce growth."

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