[Special Stock] CJ Daehan Tongun with 'Profit Improvement Trend' Rises Over 5%

The stock price of CJ Logistics, which continued its performance improvement in the fourth quarter of last year, is on the rise.

As of 10:56 a.m. on the 12th, CJ Logistics was trading at 93,700 KRW, up 4,800 KRW (5.40%) from the previous trading day.

The day before, CJ Logistics announced that its consolidated financial statements showed provisional sales of 12.1168 trillion KRW and operating profit of 530.7 billion KRW for last year. Compared to the previous year, sales increased by 3% and operating profit by 10.5%, respectively. By business segment, sales in the parcel delivery and e-commerce division rose slightly by 0.2% to 3.7289 trillion KRW compared to the previous year. This was due to an increase in volume despite the economic slowdown. However, operating profit slightly decreased to 238.8 billion KRW.

The Contract Logistics (CL) division posted sales of 2.9857 trillion KRW, up 4.6% year-on-year, thanks to an expansion of new orders based on logistics consulting. Operating profit also increased by 28.1% year-on-year to 184.8 billion KRW, driven by the effects of new orders and productivity innovation projects.

The global division recorded sales of 4.4329 trillion KRW and operating profit of 86.2 billion KRW. Both sales and operating profit increased by 5.4% and 11.3%, respectively, compared to the previous year. CJ Logistics explained that this was due to continued growth in local CL businesses in strategic countries such as the United States and India, along with an expansion in forwarding business sales.

On the same day, Kim Young-ho, a researcher at Samsung Securities, said about CJ Logistics, "Sales growth was led by the global division, supported by increased volume and rising ocean freight rates," adding, "Profit improvement was driven by the CL division, which improved profitability through a base effect and productivity enhancements." He further stated, "Performance improvement in the parcel delivery division is expected through volume growth via differentiated services and profitability enhancement through price increases," and "The CL division's strong performance will continue due to the expansion of third-party logistics."

Jung Yeon-seung, a researcher at NH Investment & Securities, said, "Efforts to increase organic growth through new delivery services are being actively pursued," adding, "Results are expected from the second quarter of this year. The current stock price is at a price-to-earnings ratio (PER) of 6.1 times based on this year, which offers sufficient price advantage."