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[Alpha Biz=(Chicago) Reporter Paul Lee] Daishin Securities assessed CJ Korea Express (000120) on the 3rd that it will be the biggest beneficiary of Ali Express's attack on Korea this year. It is predicted that profit forecasts and delivery sectors will grow as the volume of Ali Express processing increases by more than 50 million boxes. It maintained its investment opinion 'buy' and raised its target price by 33% to 160,000 won.
"CJ Korea Express' stock price has risen more than 60% since mid-November last year on expectations of an increase in Chinese direct purchases, especially Aliexpress," Daishin Securities said. "The upward trend of the stock price is likely to continue despite the large short-term increase."
The reason is that the volume of Ali Express last year was estimated to be around 30 million boxes, but this year it will increase significantly to 50 million boxes.
"CJ Korea Express is currently in charge of customs clearance and delivery," Daishin Securities said. "We plan to increase the production capacity of the International Special Delivery Center (ICC) by five times from the current 2 million boxes per month to 10 million boxes per month by 2025."
The fourth quarter of 2023 is expected to exceed estimates. The fourth-quarter earnings are expected to be about 2.9 trillion won in sales and 131 billion won in operating profit.
The target price is 160,000 won.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
