[Click eStock] "CJ Daehan Tongun, Thanks to 'Ali', Market Share Will Increase"

by Hwang Yoonju

Published 05 Mar.2024 08:40(KST)

Expected 5% Growth Rate in Parcel Delivery Volume This Year

[Click eStock] "CJ Daehan Tongun, Thanks to 'Ali', Market Share Will Increase"

Shinhan Investment Corp. forecasted a 5% growth rate in parcel volume for CJ Logistics this year on the 5th. They newly initiated coverage with a 'Buy' rating and a target price of 181,000 KRW.

Myung Ji-woon, a researcher at Shinhan Investment Corp., stated, "CJ Logistics' parcel volume growth rate of 5% this year exceeds the domestic parcel market growth rate of 4%," adding, "CJ Logistics' market share is expected to increase due to the expansion of Chinese e-commerce sales in Korea."

Researcher Myung predicted that AliExpress's low prices will attract more consumers (parcel volume) this year. He evaluated, "It will take volume from Coupang, attract volumes from e-commerce companies that used competing parcel services, and create new demand. The growth will be even greater due to business expansions such as securing a logistics center in Korea and entering the fresh food market by AliExpress."

Researcher Myung analyzed, "The stock price decline from 2021 to 2023 was due to the peak-out of parcel volume, concerns over market share loss to Coupang, and MSCI exclusion," and added, "With the emergence of Chinese e-commerce, concerns about sluggish parcel volume and Coupang will be resolved."

He continued, "This year, we expect significant growth through parcel volume growth and efforts to improve profitability," and concluded, "It is now time to receive a higher valuation."