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CJ Logistics headquarters. (Photo courtesy of CJ Logistics) |
[Alpha Biz= Paul Lee] SEOUL, June 12 — Shares of CJ Logistics have continued to underperform despite improved earnings, as intensifying competition with Coupang and fading regulatory tailwinds weigh on investor sentiment.
As of late morning trading on June 11, CJ Logistics was down 1.49%, extending a roughly 29% decline over the past three months, sharply underperforming the broader market.
The company reported first-quarter revenue of 3.21 trillion won and operating profit of 92.1 billion won, up 7–8% year-on-year. However, profit fell well short of market expectations, reflecting rising costs tied to aggressive investment in delivery services.
CJ Logistics has expanded its seven-day delivery service, “Maeil One,” to compete with Coupang’s “Rocket Delivery,” increasing operating hours at logistics hubs and adding cost pressures. Higher taxes and rising oil prices have further weighed on profitability.
Investor sentiment has also been dampened by delays in deregulation measures that would allow large retailers to expand early-morning delivery services, limiting potential growth catalysts.
Brokerages have responded by lowering target prices, citing slowing growth in the parcel delivery sector and increased competition. Some analysts, however, maintain that the company remains undervalued and could see a rebound in the second half as costs stabilize and operational efficiency improves.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
