April 16, 2024
Stocks & Bonds
[EQUITIES] ‘CJ Korea Express struggles to improve’
[THE INVESTOR] CJ Korea Express is struggling to increase earnings as costs are rising faster than sales, said Dongbu Securities on April 14, lowering the target price to 210,000 won (US$184) from 240,000 won.
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Its delivery division’s profit ratio in particular is lagging behind expectations, said analyst No Sang-won.
The logistics firm’s revenue in the first quarter will rise 14 percent on-year to 1.65 trillion won but operating profit will inch up only by 0.7 percent to 53.6 billion won, estimated the analyst.
The effect of delivery sector’s expansion will be visible only after the Gonjiam terminal starts operating in the first half of 2018, said No. “The volume handled will continue to increase but cost efficiency will not be realized this year.”
Overseas, both revenue and operating profit will rise in the latter half largely on the back of companies it acquired last year, said the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)
