] CJ Korea Express
’ fourth-quarter earnings will slightly miss market estimates with 1.6 trillion won (US$1.33 billion) revenue and 56.3 billion won operating profit, said Eugene Investment and Securities on Jan. 11.
While its market share expanded to mid-40 percent, its processing capacity has reached its limit, the brokerage noted.
Investors should focus on its growth potential in mid to long term, emphasized analyst Bang Min-jin, maintaining a “buy” recommendation and 250,000 won target price.
“CJ Korea Express is dominating the parcel delivery market in Korea, and is investing in building a hub terminal and automating its sub terminals. When the large-scale investment wraps up in 2018, its margin rate will pick up due to the heightened efficiency and heavier operational focus on profitability,” the analyst added.
By Hwang You-mee (email@example.com