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As of April, the unit price of the small messengers increased by 250 won.
“An opportunity to increase earnings prospects and valuations”
(Photo = Yonhap News)
CJ Logistics, the number one company in the national parcel market(182,000 + 1.96%)We are going to raise the price of this parcel service. Stock prices predicted that the stock price is expected to rise along with improving earnings.
According to the Korean Stock Exchange on the 26th, at 10:25 am on the day, CJ Logistics’ stock price is trading at 182,500 won, 2.24% higher than the previous day. This is a 12% increase from the beginning of this month (March 2, 163,000 won).
The fact that CJ Logistics has decided to increase the cost of shipping for corporate clients is a good thing. Since April, CJ Logistics has distributed a guide containing a 250 won increase in the unit price of a small package delivery contract (three sides total 80cm, weight less than 2kg) to front-line agencies. Consequently, the small courier fee is expected to increase from 1,600 won to 1,850 won.
Je-Hyun Ryu, a researcher at Mirae Asset Securities, said: “CJ Logistics small package delivery accounts for more than 80% of the total, and large-scale package delivery is expected to increase.” ” he said.
An increase in the price of the plots has already been forecast. While measures were implemented to avoid overworking of courier drivers, the cost burden of courier companies was affected by the introduction of additional labor, and the increase in the minimum wage and rent of the terminal they were also affected.
CJ Logistics has prepared the necessary resources to improve the work environment this year. In the same way as this increase, the commission paid to the courier will increase, and additionally, more than 60 billion won will be used for hiring sorting personnel.
In the securities industry, an increase in package delivery prices is expected to serve as an opportunity to increase both the earnings outlook and the valuation of CJ Logistics (share price versus corporate value). Lotte Logistics and Hanjin this year(43,050 -0.35%)It is analyzed that the effect of the increase will be even faster since the three companies (77% of the combined market share) are increasing the parcel service together.
With the new coronavirus infection (Corona 19) as the trigger, package delivery volume has exploded and the package delivery industry is currently holding the battle for market share. Instead, the position is to focus on improving the delivery service and work environment through price normalization.
Korea Securities and Investment Research Institute Choi Woon said: “The focus of the competition will be differentiation of services such as ‘packaging logistics service (full presentation)’ and fast delivery.”(377,500 -0.66%) “It is an attractive opportunity for investors interested in CJ Logistics, which is cooperating,” he explained.
Eunji Cha, Reporter Hankyung.com [email protected]
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