[EQUITIES] CJ Korea Express speeds up expansion in China

[THE INVESTOR] CJ Korea Express is expected to tap deeper into the Chinese market with the recent acquisition of Speedex, an affiliate of China’s leading home appliance firm TCL, a local brokerage firm said on Aug. 1. 

“CJ Korea Express is likely to enter China’s consumer-oriented delivery service market after acquiring Speedex,” said Ha Joon-young, an analyst at HI Investment & Securities.

On July 29, CJ Korea Express announced that its Chinese holding company CJ Korea Express Investment would acquire 50 percent stake of Speedex for 81.1 billion won (US$72.09 million). This amounts to 3.42 percent of its equity capital.

“The company‘s stock will maintain its price-to-earnings ratio as it is speeding up expansion in China,” Ha said.

With the takeover of Speedex, CJ Korea Express expects to secure the global shipment order of TCL, the world’s third-largest TV manufacturer, the analyst added.

HI Investment & Securities retained its price target for CJ Korea Express at 255,000 won while keeping a buy rating.

The shares fell 0.5 percent to 199.500 won as of 9:30 a.m., underperforming a 0.63 percent gain in the broader market.

By Park Han-na (hnpark@heraldcorp.com)