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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Daishin Securities has revised its target price for CJ Logistics downward from 130,000 KRW to 110,000 KRW, citing expectations that the company’s first-quarter earnings will fall short of market forecasts. However, the firm maintained its "Buy" investment rating.
“CJ Logistics' parcel volume in January and February appears to have declined by 8.3% year-on-year to approximately 246 million boxes,” Daishin Securities stated. “Due to continued sluggish domestic demand in March, we estimate that Q1 parcel handling volume will fall 6.5% year-on-year, amounting to approximately KRW 3.786 trillion.”
Despite the weaker parcel volume, Daishin expressed confidence in CJ Logistics' Contract Logistics (CL) segment, particularly the strength of its warehousing and distribution (W&D) business. The firm also noted that, excluding the forwarding segment, global operations are expected to show continued growth driven by increased volume in the U.S., India, and Vietnam.
Daishin Securities added that it anticipates a recovery in earnings starting in the third quarter, following the presidential election.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
