[Click eStock] "CJ Daehan Tongun, Expected Return to Growth Trend in 4Q Parcel Volume"...Target Price Up

Daishin Securities maintained a buy rating on CJ Logistics on the 24th, raising its target price from 105,000 KRW to 120,000 KRW, citing an upward revision in earnings estimates as parcel handling volume is expected to return to a growth trend starting from the fourth quarter of this year.

Yang Ji-hwan, a researcher at Daishin Securities, explained, "During the COVID-19 pandemic, consumers shifted to more segmented consumption patterns across various channels and brands, rather than being limited to a single brand or one or two consumption channels. Additionally, the weakening of purchasing power due to high inflation and high interest rates is driving a change in consumer behavior toward seeking cheaper products."

He added, "In the past, overseas direct purchases increased only during Black Friday events, but with the reduction in delivery times for overseas direct purchase products, consumption using inexpensive Chinese online malls has significantly increased. CJ Logistics is expected to gain an opportunity for parcel volume to grow again by quickly handling volumes from Chinese online malls such as AliExpress, based on its GDC in Incheon and guaranteed arrival infrastructure."

Yang also noted, "CJ Logistics has been exclusively handling volumes from Chinese company A since this year, processing about 3.5 million boxes in the first quarter and over 9 million boxes in the third quarter. With events like Singles' Day in the fourth quarter, volumes are expected to expand to over 10 million boxes."

He continued, "Besides company A, CJ Logistics is receiving inquiries from various global online malls, and it is judged that CJ Logistics will remain the only company equipped with infrastructure to provide guaranteed arrival services for overseas direct purchase volumes for the time being."

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