[Click eStock] "CJ Daehan Tongun, Expected 300 Billion KRW Annual Sales Increase Through Shinsegae Collaboration"

Expected 55 Million Annual Shipments Through Strengthened Logistics Cooperation
Growth Anticipated from Shinsegae Volume Consignment Despite Slowdown in China-Origin Direct Purchases

Daishin Securities analyzed on the 14th that CJ Logistics' sales will increase by 300 billion KRW annually through logistics cooperation with the Shinsegae Group. They maintained a 'Buy' investment rating and a target price of 175,000 KRW.

Researchers Yang Jihwan and Lee Jini of Daishin Securities stated, "CJ Logistics has decided to pursue logistics cooperation with the Shinsegae Group," adding, "Accordingly, CJ Logistics is expected to be entrusted with the logistics operations and take full responsibility for delivery of Gmarket and SSG.com's shipments."

The monthly volume of Gmarket Smile Delivery, affiliated with Shinsegae, is about 2.5 million shipments, and SSG.com's dawn delivery and SSG Delivery volume is about 2 million shipments per month. The annual delivery volume is estimated to reach approximately 50 to 55 million shipments. This corresponds to about 3.4% of CJ Logistics' parcel handling volume of approximately 1.6 billion shipments in 2023.

Recently, due to consumer complaints about the growth of direct purchases from China and government regulatory movements, the stock price has fallen about 20% in three months. However, growth is expected through cooperation with the Shinsegae Group.

Researchers Yang Jihwan and Lee Jini said, "Furthermore, if the Shinsegae Group entrusts CJ Logistics with the purchase volume of agricultural products from Emart's production areas, the volume is expected to increase up to 100 million shipments annually," adding, "Although there are concerns about the slowdown in the growth of direct purchases from China, CJ Logistics' direct purchase handling volume in the second quarter is expected to reach about 18 to 19 million shipments." The second quarter parcel handling volume is projected at 415 million shipments, and the volume growth is expected to increase further in the second half of the year.

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