iM Securities noted on the 11th that it expects improved performance for CJ Logistics from the third quarter due to an increase in delivery volume. From next year, the revenue growth of its global subsidiaries is also expected to stand out. It raised the target stock price from the previous 110,000 won to 120,000 won and maintained its investment opinion as "buy."
CJ Logistics' estimated revenue for the second quarter of this year is expected to be 3.1 trillion won, with an operating profit of 111.4 billion won. This is a 1.2% increase and an 11.1% decrease compared to the same period last year, respectively. Due to the decline in delivery volume since the fourth quarter of last year, the forecast for operating profit is likely to fall short of market expectations (consensus).
The delivery sector is expected to generate revenue of 819.9 billion won and an operating profit of 45.7 billion won. These figures represent a decrease of 2.5% and 27.5%, respectively, compared to the same period last year. Due to the decrease in volume, the performance is expected to be somewhat sluggish. The contractual logistics (CL) sector is projected to have revenue of 819.9 billion won and operating profit of 45.7 billion won, which would indicate increases of 11.2% and 7.3%, respectively, compared to the same period last year.
From the third quarter, the delivery volume is expected to rebound. A 12 trillion won livelihood recovery support fund is expected to be implemented in earnest. Although consumption coupons will have limited use online, as consumption becomes active, it may also affect delivery volume.
The subsidiaries in India and the United States are expected to see significant growth from next year. The Indian subsidiary, CJ Daed, is scheduled to go public next year, while the U.S. subsidiary is set to begin operations at the Kansas New Century Cold Chain Logistics Center in the third quarter and the Illinois Eldwood Logistics Center in the first half of next year.