[Click eStock] "CJ Daehan Tongun, Q4 Sales Up 4.4% YoY...Strengthened Fundamentals"

[Asia Economy Reporter Ji-hwan Park] Hi Investment & Securities evaluated that CJ Daehan Tongun's Q4 earnings this year met market expectations and showed improved fundamentals. Accordingly, the investment opinion 'Buy' and the target price of 210,000 KRW were maintained.

Junyoung Ha, a researcher at Hi Investment & Securities, stated, "Q4 sales are expected to be 2.9508 trillion KRW and operating profit 101.6 billion KRW, representing increases of 4.4% and 0.3% year-on-year respectively, meeting market expectations."

The parcel delivery division is expected to see a 25.5% increase in volume and a 23.2% growth in sales. In particular, since the end of November, the resurgence of COVID-19 is analyzed to have steepened the growth rate of volume.

Researcher Ha said, "The global business division, which had already escaped the impact of COVID-19 in Q3, is expected to grow faster in Q4," and added, "Although the CL business division will continue to see sales decline due to economic slowdown, its margin is expected to recover to double digits."

Regarding fulfillment services, high growth potential could lead to an increase in valuation multiples, and the increase in parcel delivery unit prices is expected to boost profits.

Researcher Ha stated, "Through the increase in parcel delivery unit prices, there is sufficient possibility that the working conditions of parcel delivery workers will improve and the profits of parcel delivery companies will also increase."