From April, the unit price of small couriers increased by 250 won.
“An opportunity to increase profit prospects and valuations”
(Photo = Yonhap News)
CJ Logistics, the No. 1 company in the domestic parcel market share(182,000 +1.96%)We are going to raise the price of this parcel delivery service. Stock prices predicted that the stock price is expected to rise along with earnings improvement.
According to the Korea Exchange on the 26th, as of 10:25 am on the day, the share price of CJ Logistics is trading at 182,500 won, up 2.24% from the previous day. This is a 12% increase from the beginning of this month (March 2, 163,000 won).
The fact that CJ Logistics decided to increase the delivery cost for corporate customers is a good thing. From April, CJ Logistics has distributed a guideline that contains a 250 won increase in the unit price of a small (three sides total of 80 cm, weight less than 2 kg) parcel delivery contracts to front-line agencies. Accordingly, the small courier fare is expected to increase from 1600 won to 1850 won.
Je-Hyun Ryu, a researcher at Mirae Asset Securities, said, “CJ Logistics’ small-sized parcel delivery accounts for more than 80% of the total, and large-scale parcel delivery is expected to increase.” It will be visible,” he said.
An increase in the price of parcels has already been predicted. While implementing measures to prevent overwork of courier drivers, the cost burden of courier companies was burdened by the introduction of additional manpower, and the increase in minimum wage and terminal rent also had an impact.
CJ Logistics will provide necessary resources to improve the working environment this year. In the same way as this increase, the commission paid to the courier will be raised, and additionally, more than 60 billion won will be used for recruitment of sorting personnel.
In the securities industry, an increase in parcel delivery prices is expected to serve as an opportunity to increase both CJ Logistics’ earnings outlook and valuation (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 as the three companies (77% of the combined market share) are raising the parcel service.
With the new coronavirus infection (Corona 19) as a trigger, the parcel delivery volume has exploded, and the parcel delivery industry is currently stopping the battle for market share. Instead, the position is to focus on improving the delivery service and working environment through price normalization.
Korea Investment & Securities Research Institute Choi Woon said, “The focus of the competition will be on differentiating services such as’package logistics service (full-filment)’ and fast delivery,” he said. “Infrastructure investment and Naver(377,500 -0.66%) “It is an attractive opportunity for investors who are interested in CJ Logistics, which is conducting cooperation,” he explained.
Eunji Cha, reporter Hankyung.com [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution