Company Reports

SF Holding's second-quarter revenue rose 6% year on year, but recurring net profit increased only 3%. Revenue from time definite delivery, which is only reported every six months, was flat. SF's shares fell 6% after earnings.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

SF Holding's first-quarter net margin was 20 basis points higher year on year but flat sequentially at 3.4%. Revenue rose 6.1% year on year to CNY 74 billion, higher than parcel volume growth of 4.9%. International and supply chain revenue rose 8.2%.

SF Holding’s fourth-quarter net income rose 10% year on year, exceeding its guidance of flat growth. Net margin rose 10 basis points to 3.4%. Management expects revenue growth in time definite express services (excluding return parcels) to outpace China's GDP growth in 2026.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

Among the A‑share express operators that have released fourth‑quarter data, year‑on‑year revenue growth ranged from 0% to 24%. Average selling price improvement was partially offset by a slowdown in industry parcel volume growth to 5.0% year on year, from 13.3% in the prior quarter.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

SF Holding and J&T Express have entered into a reciprocal share subscription agreement valued at HKD 8.3 billion each. Upon completion, SF will raise its stake in J&T to 10% from 1.55%, while J&T will acquire a 4.86% interest in SF if approved by its shareholders.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

SF Holding’s parcel volume grew a robust 33% year on year in the third quarter, driven by expansion in its low-margin e-commerce parcel business segment. EBIT fell 18%, affected by a 160-basis-point drop in gross margin and higher sales and marketing expenses.

SF Holding’s core EBIT fell 1% year on year in the quarter despite an 11% increase in revenue. Management guided for 2025 capital expenditure to be similar to or lower than 2024. The peak of capex has passed. Capex as a percentage of revenue fell to 2.9% in the first half from 4.1% a year ago.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

SF Holding's first-quarter core EBIT grew 28% year on year, above the 7% growth in revenue, thanks to operating leverage and, to a lesser extent, the 10-basis-point increase in gross margin.

SF Holding, or SF's, revenue and recurring EBIT grew 10% and 32% year on year in 2024, respectively. Net margin rose to 3.6% in 2024 from 3.1% in 2023. SF plans to gradually raise the dividend payout ratio over 2025-28 from 40% in 2024. Including special dividend, 2024 payout ratio was 87%.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

The Israel-Hamas ceasefire brought hope for the resumption of Red Sea shipping. Meanwhile, President Trump intends to raise tariffs on the EU, Canada, Mexico, and China, which could reduce global trade volume.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

Through organic growth and acquisitions, SF Holding has become the largest integrated logistics services provider in China and Asia and the fourth largest globally.

We initiate coverage on wide-moat SF Holding’s, or SF’s, Hong Kong-listed shares with a fair value estimate of HKD 61.80 per share. We maintained the A-shares’ fair value estimate at CNY 57.60 as the dilution from the H-shares listing is limited, amounting to only 3.4% of the total issued shares upon listing before over-allotment. We retain our revenue and net profit forecasts on SF, and view both A-shares and H-shares as undervalued. We believe SF’s margin expansion potential has not been fully reflected in current share prices.