CJ Logistics' stock price is showing strength, driven by growth in its parcel delivery and contract logistics (CL) divisions, following strong third-quarter results this year.


As of 9:36 a.m. on November 10, CJ Logistics was trading at 87,700 won, up 4,300 won (5.16%) from the previous trading day.


In the third quarter, CJ Logistics posted sales of 3.0666 trillion won and operating profit of 147.9 billion won, up 3.1% and 4.4% year-on-year, respectively. Operating profit exceeded the market consensus by 7%.

[Market Highlight] "Full-Fledged Earnings Recovery" Drives CJ Logistics Shares Up Over 5% View original image

On this day, Mirae Asset Securities stated, "While improvements in the parcel delivery and CL divisions are clear, the stock remains excessively undervalued at 0.4 times the price-to-book ratio (PBR) based on next year's expected earnings," maintaining a "Buy" rating and a target price of 120,000 won.


Choi Jiwoon, a researcher at Mirae Asset Securities, said, "With the expansion of services such as seven-day-a-week delivery, we expect a continued recovery in parcel volume and market share. Next year, we also anticipate a partial rebound in parcel unit prices, and together with cost efficiency improvements, we expect a full-fledged recovery in profitability for the parcel delivery division."



He added, "As earnings recovery becomes more pronounced in the future, a revaluation of the company's valuation should be possible."


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

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