[Click eStock] CJ Daehan Tongun, Parcel Delivery Strike + Thailand Business Exit... Target Price ↓

The Delivery Workers' Union held the '2022 National Delivery Workers' Conference' on the 21st at Cheonggye Plaza in Seoul, urging CJ Logistics to implement the social agreement and accept dialogue. /Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] Ebest Investment & Securities maintained a 'Buy' rating on CJ Logistics on the 28th, citing the domestic courier strike and the global courier business exit strategy, but lowered the target price to 180,000 KRW.

Orin Ah, a researcher at Ebest Investment & Securities, stated, "The process of terminating the courier business in Thailand is expected to continue in the first quarter of this year."

Researcher Oh analyzed, "The first quarter of this year is expected to be somewhat slow due to the domestic courier strike and the impact of the global courier business exit. In particular, the continued uncertainty in the domestic courier sector, which contributes the most to profits, will likely burden the company's overall performance in the first half of the year."

Researcher Oh also evaluated, "However, it is necessary to watch the high growth of e-commerce volume (fulfillment and new LDM YoY 127.9%), performance defense through courier price increases, and the base effect in the second half after global restructuring."

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