[E-Daily Reporter Kim Hyung-il ] Shinhan Investment Securities projected that CJ LOGISTICS’s corporate value will be more significantly influenced by the success of its medium- to long-term strategies than by short-term earnings. The firm maintained its “Buy (BUY)” rating and target price of 110,000 won.

On the 20th, Choi Min-ki, an analyst at Shinhan Investment Securities, stated, “Historically, valuation multiples have been determined by the company’s market position within the domestic parcel delivery industry,” adding, “Whether the company succeeds in implementing its mid- to long-term strategy will have a greater impact on its intrinsic corporate value than short-term earnings.” He continued, “We recommend a long-term investment approach rather than short-term trading.”

For the courier business, the firm forecast annual double-digit growth in shipment volume, driven by the high growth in gross merchandise volume (GMV) of partner e-commerce platforms. Regarding pricing strategy, the company is expected to maintain a direction that anticipates market restructuring; while anticipating a price hike in the second half of next year, the firm expects the company to implement gradual price increases starting in the second half of this year, focusing on customers who heavily rely on same-day and early-morning delivery services.

Additional costs resulting from the flexible operation of hub terminals are estimated at 1.5 billion won per month. However, the cost burden is expected to be gradually offset by leverage effects from increased volume and improvements in unit costs.

Regarding the Contract Logistics (CL) business, the company assessed that while port bulk and food and beverage cargo volumes at warehousing and distribution (W&D) facilities have contracted, volumes from major customers are growing. It also projected that the burden caused by rising prices of raw materials and oil following the war would decrease as the second half of the year progresses.

In the global business, the company viewed the revenue growth and order trends of local logistics operations in strategic markets such as the U.S., India, and Vietnam positively. It assessed that while Olive Young’s U.S. operations would make a minimal contribution to short-term profitability, they hold long-term growth potential. Regarding forwarding, the company projected that the increase in freight rates would be reflected in selling prices starting in the third quarter and explained that it aims to improve return on equity (ROE) through future network restructuring and integration with the local logistics operations of its overseas subsidiaries.

Annual capital expenditures (Capex) for this year are projected to range from 500 billion to 550 billion won. However, the company noted that the investment scale could change if suitable logistics center properties become available. It is also preparing to introduce humanoid robots, primarily in its contract logistics business, and expects to improve efficiency in labor-intensive processes.

Regarding shareholder returns, the company stated that it plans to determine how to utilize its 12.6% treasury stock—taking into account policy directions and market opinions—in a manner that does not undermine shareholder value.

In terms of valuation, the company assessed that the 12-month forward price-to-book ratio (PBR) of 0.3x is at a historic low. Analyst Choi stated, “Additional downward pressure is expected to be limited,” adding, “We anticipate a recovery as the business strategy becomes more visible.”