Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

CJ Logistics: Still Lacking Focus, Still Unlikely to Reach 6,000+ EPS Any Time Soon

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Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Equity Bottom-Up

<ul>
<li>Previously, we criticized CJ Logistics as unfocused, pursuing deals in low-margin segments around the world as if to fill a logistics <em>'Bingo!'</em> card rather than in-line with a rational strategy</li>
<li>In recent years, investors have punished the company's shares, which have fallen by more than half since reaching a high of over 184,000 won per share in March 2021. </li>
<li>However, with management de-emphasizing its Global segment and focusing instead on the more promising Parcel / E-commerce line of business, there is cause for optimism, in our view</li>
</ul>


Previously, we criticized CJ Logistics as unfocused, pursuing deals in low-margin segments around the world as if to fill a logistics 'Bingo!' card rather than in-line with a rational strategy
In recent years, investors have punished the company's shares, which have fallen by more than half since reaching a high of over 184,000 won per share in March 2021. 
However, with management de-emphasizing its Global segment and focusing instead on the more promising Parcel / E-commerce line of business, there is cause for optimism, in our view


Cainiao Smart Logistics Network (1437124D HK)

Catching Up With CJ Logistics (000120 KS): With Shares Beaten Down, Management Forced to Refocus