Consumer Discretionary Author:Jiawei Wu Editor:Yiru Qian Sep 20, 2022 03:46 PM (GMT+8)

S.F. Holding (Chinese: 顺丰控股,SZ: 002352) released its August operating briefing, and Fengwang was officially unveiled in early September.

Shunfeng

Chinese logistics giant SF Holding released its August operating briefs on the evening of September 19, showing that in last month, the company achieved a total revenue of CNY 21.89 billion (USD 3.12 billion), up 46.23% year-on-year.

Among them, the express business revenue was of CNY 14.7 billion, up 10.47% year-on-year, maintaining double-digit growth; business volume was of CNY 942 million, up 9.15%; single order revenue reached CNY 15.61 , up 1.23%; international and supply chain business revenue was of CNY 7.19 billion, up 332.75% year-on-year.

SF Express business segment volume pieces and revenue growth exceeded the industry average. According to the official statistics, the national express service enterprises completed 9.43 billion pieces of business in August, up 4.9% year-on-year; business revenue completed 88.39 billion yuan, up 5.2% year-on-year.

Xingye Securities denoted that SF's high-end express business remained solid, despite the impact of multiple factors such as the epidemic and off-season. As the epidemic gradually recedes and the company continues to promote cost reduction and efficiency enhancement, Xingye Securities expected the company's performance future growth to be of "a strong certainty".

Since the second half of last year, under the change of various factors such as decentralization of e-commerce, downward capital investment cycle, slowdown of trunk cost curve, change of end manpower elements and policy-led high-quality development, the operation orientation and investment orientation of express industry have undergone a major shift, with business operation from seeking big to seeking strong, profit margin from bottoming out to rebounding significantly, and investment logic from share-oriented to profit-oriented. With the improvement of the industry environment as well as e-commerce and capital cycle shift, the head express advantage business is expected to strengthen. 

It is worth noting that while strengthening the main business, much attention was paid to the official unveiling of Fengwang (Chinese: 丰网, meaning a network with wide coverage) in early September. As an all-network courier company with "independent license" and operating qualification, Fengwang has completed coverage of 19 provinces, 229 cities and 2 municipalities directly under the central government, operating 1,671 franchised outlets.

As of press time, SF Holdings closed at CNY 49.03 apeice, with a market cap of CNY 238.3 billion.