[Click e-Stock] "CJ Logistics to See Improved Performance from Q3"

On September 15, Research Alarm projected that CJ Logistics would see a significant improvement in its performance starting from the third quarter of this year. Along with a positive outlook for the stock price, the firm suggested a fair value of 150,000 won per share.

Choi Sunghwan, a researcher at Research Alarm, stated, "We estimate that CJ Logistics' contract logistics (CL) business will reach 3.4 trillion won this year," adding, "It is expected to show the highest growth rate among all business segments."

He continued, "The contract logistics business is expected to offset the sluggish parcel delivery business that was subdued in the first half of this year and drive overall growth," noting that "demand for logistics outsourcing from domestic and international manufacturers and distributors is expanding."

He added, "There is increasing demand for specialized logistics services in high value-added industries such as e-commerce, food and beverage, healthcare, semiconductors, and batteries," emphasizing that "the operating margin for the CL business segment in the first half of this year was 5.1%."

Choi also analyzed, "The global business segment accounted for the largest share (40%) of total revenue in the first half of this year," but "the operating margin remained at 1.3%." He explained, "This reflects the impact of international freight rate volatility, intense competitive environment, and cost burdens from the initial expansion of overseas bases." He predicted, "Global logistics demand will continue to show solid growth over the mid to long term."

He further stated, "CJ Logistics is expanding its presence on key routes connecting Asia, North America, and Europe," and added, "With the overseas expansion of Korean consumer goods through K-Content, K-Beauty, and K-Food, the company is expected to benefit."

It is estimated that the company will achieve sales of 12.4 trillion won and operating profit of 475.6 billion won this year. Compared to last year, sales are expected to increase by 2.1%, while operating profit is projected to decrease by 10.4%.

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