[Click e-Stock] "Hanjin, Parcel and Global Profitability Improve...Performance Recovery Expected This Year"

On August 25, iM Securities maintained its "Buy" investment rating and target price of 27,000 won for Hanjin, stating, "The company's performance is expected to improve at an accelerated pace this year due to the expansion of parcel delivery production capacity (CAPA) and increased logistics demand for cross-border e-commerce to North America."

In the second quarter of this year, Hanjin reported consolidated sales of 740.8 billion won, up 0.9% year-on-year, and operating profit of 37 billion won, an increase of 0.3%. Compared to the previous quarter, operating profit rose by 35.5%, meeting market consensus. Lee Sangheon, a researcher at iM Securities, explained, "In the parcel delivery segment, operational efficiency has improved, centered around the Daejeon Mega Hub Terminal, leading to a reduction in parcel operation costs. In the global segment, sales increased and profitability improved due to the expansion of the Incheon Airport GDC and the activation of fulfillment services in response to rising cross-border e-commerce volumes to North America."

For the full year, sales are projected to reach 3.1961 trillion won, up 6% year-on-year, with operating profit expected to rise by 31.4% to 131.5 billion won. He analyzed, "This is because the base effect from ordinary wage-related costs will support continued profitability improvement in the parcel delivery segment, as well as sustained growth in the global segment."

Last year, the parcel delivery segment experienced stagnant sales due to the loss of major clients such as Coupang, and profitability deteriorated further due to initial costs associated with the opening of the Mega Hub Terminal. However, this year, the operating rate of the Daejeon Mega Hub Terminal is increasing, and aggressive acquisition of new clients is driving up cargo volume and improving profitability. Lee noted, "With the establishment of the Daejeon Mega Hub Terminal, the hub-and-spoke delivery system-which consolidates parcel volume nationwide in Daejeon before redistribution-will be further strengthened. In an environment of increasing cargo volume, this will not only significantly reduce costs and improve operational efficiency by minimizing the number of transit stops, but also enhance profitability through automation."

The global segment also saw clear benefits from expanding the Incheon Airport GDC's facility CAPA from a maximum of 1.1 million parcels per month to 2.2 million. In the first half of this year, processed volume reached 9.59 million boxes, a 53.9% increase year-on-year. Researcher Lee stated, "With more domestic fashion, beauty, and food brands entering overseas platforms this year, cross-border e-commerce logistics demand is expanding, supporting continued growth. In the North American business, high-margin revenues from fulfillment and Road Feeder Service (RFS) are expected to contribute to further profitability improvement."

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