Shinhan Financial Investment maintained its "buy" opinion on CJ Logistics, saying its profits were normalized due to higher selling prices. However, it announced on the 9th that the target price will be lowered by 15% to KRW 170,000.
Shinhan Investment said, "CJ Logistics achieved 2.8 trillion won in sales and 105.4 billion won in operating profit in the third quarter,"adding, "In line with 103.4 billion won in consensus operating profit, the CL division recorded sales of 664 billion won and operating profit of 28.3 billion won and operating profit fell year-on-year due to damage to long-term contract margins caused by rising freight rates.".
"The parcel delivery division posted sales of 895.8 billion won and operating profit of 62.4 billion won, and the effect of the price increase was reflected as warmth, driving the improvement in performance," Shinhan Investment said. "The global division's market share fell to 1.1 trillion won and operating profit fell to 9.7 trillion won due to the sale of CJ Rokin.".
"The amount of e-commerce collaborating with Naver increased to 3 million boxes in the third quarter," Shinhan Financial Investment said. "It is only 0.7% of the total delivery volume, so it takes time to contribute to meaningful performance.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
