[Click eStock] "CJ Daehan Tongun, Slowing Growth Rate of Parcel Volume"

Delivery Price Increase Causes Rapid Slowdown in Volume Growth
SK Securities Lowers CJ Logistics Target Price from 210,000 KRW to 175,000 KRW

[Asia Economy Reporter Gong Byung-sun] While the growth rate of parcel volume in the domestic delivery market is slowing down, CJ Logistics' growth is becoming even more stagnant. Accordingly, SK Securities has lowered CJ Logistics' target stock price by about 17% from the previous level.

On the 15th, SK Securities maintained its investment opinion of "Buy" for CJ Logistics but revised the target price downward from 210,000 KRW to 175,000 KRW. The closing price on the 12th was 139,000 KRW.

The slowdown in parcel volume growth was anticipated. Last year, the parcel market volume growth rate was 21.3% compared to the same period the previous year, but in the third quarter of this year, it was somewhat sluggish at 7.1%. This was a natural result of the surge in e-commerce transaction amounts due to the impact of COVID-19, which caused parcel volumes to increase rapidly.

Even considering this, CJ Logistics' performance falls short of expectations. In the third quarter of this year, CJ Logistics' parcel volume was 430 million boxes, growing only 1.9% compared to the same period last year. Last year, CJ Logistics' parcel volume growth rate compared to the previous year was 28%.

This is interpreted as the combined effect of parcel price increases and the Coupang effect. In fact, the average selling price (ASP) per box in the third quarter of this year was 2,193 KRW, a 12% increase compared to the same period last year, but the volume decreased as a trade-off. The parcel price increase caused the volume growth rate to slow down rapidly.

Furthermore, volumes related to Coupang are not counted as parcel volumes. SK Securities researcher Yoo Seung-woo explained, "Coupang's estimated cumulative gross merchandise volume (GMV) until the third quarter of this year was 24.6 trillion KRW, a 57% increase compared to the same period last year, which was a negative factor for volume growth."

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