[Click eStock] "CJ Daehan Tongun to Continue Structural Performance Improvement for 11 Consecutive Years"

CJ Logistics is expected to continue its trend of improving performance for the 11th consecutive year this year.

Choi Go-woon, an analyst at Korea Investment & Securities, stated in a report on the 13th, "CJ Logistics gave up its desire for external growth during the COVID-19 pandemic and focused on improving profitability," adding, "Thanks to that, it is now achieving tangible results in logistics automation and service differentiation."

In the fourth quarter of last year, CJ Logistics recorded sales of 3 trillion KRW, a 4% increase from the previous quarter, and an operating profit of 144 billion KRW, up 15%. For two consecutive quarters, it set a record high operating profit, surpassing the market consensus of a 9% increase.

Analyst Choi predicted, "CJ Logistics has firmly secured leadership in the fulfillment and overseas direct purchase markets," and "With parcel volume increasing by 4% compared to last year, market share is expected to rebound this year for the first time in four years."

He added, "With infrastructure competitiveness specialized in small volumes and fast delivery, parcel operating profit margin is expected to rise by an additional 0.8 percentage points this year," and "The know-how from productivity innovation projects in domestic contract logistics will also be applied to the global sector, leading to an operating profit of 538 billion KRW this year, a 12% increase from the previous year."

He continued, "Although the stock price has risen 80% in the past three months, indicating a need for a pause," he added, "As profitability improvement based on logistics competitiveness continues steadily, and shareholder value enhancement measures such as dividend expansion or share buybacks based on large-scale cash generation capabilities are concretized, stock price revaluation will be accelerated."

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