Core Viewpoint - SF Express City (9699.HK) experienced a significant stock increase of over 9.4%, reaching a peak of HKD 15.69 following the announcement of its interim results, which exceeded market expectations [1] Financial Performance - The company reported a revenue of CNY 10.236 billion, representing a year-on-year growth of 48.8% [1] - Net profit reached CNY 137 million, marking a substantial increase of 120.4% year-on-year [1] - Adjusted net profit was CNY 160 million, reflecting a growth of 139% compared to the previous year [1] Business Segments - Revenue from merchant-oriented same-city delivery services amounted to CNY 4.47 billion, up 55% year-on-year, with the platform's active merchant count reaching 850,000, also a 55% increase [1] - Consumer-oriented same-city delivery services generated revenue of CNY 1.31 billion, showing a year-on-year growth of 13%, with active consumer count at 24.77 million [1] - Last-mile delivery services achieved revenue of CNY 4.46 billion, representing a 57% increase year-on-year [1] Analyst Ratings - CICC's research report indicated that SF Express City's interim performance was above expectations, maintaining an "outperforming the industry" rating and raising the target price by 38% to HKD 18.7 [1] - The company is expected to benefit from the ongoing growth in instant delivery demand, with net profit estimates for 2025 and 2026 increased by 18.5% and 42.6% to CNY 296 million and CNY 579 million, respectively [1]

消息面上，顺丰同城公布中期业绩，上半年收入约102.36亿元，同比增长48.8%；毛利约6.81亿元，同 比增长43.8%；经调整净利润约1.6亿元，同比增长139.0%；净利约1.37亿元，同比增长120.43%。中金 指出，公司业绩超出预期，主因即时零售需求超预期增长。 智通财经APP获悉，顺丰同城(09699)绩后涨超6%，截至发稿，涨5.23%，报15.9港元，成交额3061.77万 港元。 该行认为，在平台补贴以及消费政策刺激影响下，外卖行业业务量增长强劲，其中KA餐饮商家或受益 更多。叠加商超、医药等多元KA商流的即配需求或仍在增长期，在行业高增的背景下，公司凭借第三 方的中立性、精细化的商圈网络运营能力以及运力网络的灵活性，有望持续获取KA商家中的订单增 量。我们预计25年公司面向商户收入增速或超50%，其中KA业务同比增速或将更高。 ...

该行认为，在平台补贴以及消费政策刺激影响下，外卖行业业务量增长强劲，其中KA餐饮商家或受益 更多。叠加商超、医药等多元KA商流的即配需求或仍在增长期，在行业高增的背景下，公司凭借第三 方的中立性、精细化的商圈网络运营能力以及运力网络的灵活性，有望持续获取KA商家中的订单增 量。我们预计25年公司面向商户收入增速或超50%，其中KA业务同比增速或将更高。 顺丰同城(09699)绩后涨超6%，截至发稿，涨5.23%，报15.9港元，成交额3061.77万港元。 消息面上，顺丰同城公布中期业绩，上半年收入约102.36亿元，同比增长48.8%；毛利约6.81亿元，同 比增长43.8%；经调整净利润约1.6亿元，同比增长139.0%；净利约1.37亿元，同比增长120.43%。中金 指出，公司业绩超出预期，主因即时零售需求超预期增长。 ...

Core Viewpoint - The takeaway from the news is that SF Express City has emerged as a leading player in the instant delivery industry, showcasing significant revenue and profit growth amidst fierce competition in the takeaway market, driven by a robust business model and technological advancements [2][7]. Group 1: Financial Performance - In the first half of 2025, SF Express City reported a revenue of 10.24 billion yuan, a year-on-year increase of 49%, and a net profit of 140 million yuan, up 120% [2]. - The adjusted net profit reached 160 million yuan, reflecting a 139% year-on-year growth [2]. - The growth is attributed to the rapid expansion of the food delivery and instant retail sectors, leading to a more than 50% increase in order volume for same-city delivery services [2]. Group 2: Business Structure and Segments - SF Express City operates three main business segments: same-city delivery services for merchants, same-city delivery services for consumers, and last-mile delivery services [3]. - Revenue from merchant-focused same-city delivery services reached 4.47 billion yuan, a 55% increase year-on-year, with significant growth in various categories such as tea delivery, which saw a 105% increase [3]. - Consumer-focused same-city delivery services generated 1.31 billion yuan, a 13% increase, while last-mile delivery services achieved 4.46 billion yuan, up 57% [4]. Group 3: Market Strategy and Positioning - The company emphasizes a differentiated positioning and meticulous operation across its full-scenario business matrix, focusing on both food and non-food delivery to drive revenue growth [5]. - SF Express City has actively expanded into lower-tier markets and integrated resources from the SF Group to enhance service capabilities across all areas [5]. - The company has established a healthy business operation model, positioning itself for broader growth opportunities in the competitive landscape of instant delivery [7]. Group 4: Technological Advancements - SF Express City has implemented AI applications and scaled up its unmanned delivery models, significantly improving operational efficiency [6]. - The company has over 300 unmanned vehicles in operation across more than 60 cities, with an average of 20,000 active trips per month [6]. - The rider efficiency improved by 38% year-on-year in June, contributing to increased earnings for riders, with a 65% rise in the number of high-income riders [6].

Major Events - Sihuan Pharmaceutical Holdings Group Ltd. successfully administered the first human dose of the new radiopharmaceutical conjugate drug 3D1015 [1] - Shenzhen International's joint venture Shenzhen Airlines plans to raise a total of 16 billion yuan in a phased capital increase [1] - Kangzheng Pharmaceutical received clinical trial approval for its innovative oral small molecule JAK1 inhibitor Povorcitinib for indications of vitiligo and suppurative hidradenitis [1] - Ruihe Digital signed a framework agreement with Tielin Superlight Technology to jointly advance the business of real-world asset tokenization [1] - Zhongxu Future will operate and launch a new mobile game "Miracle MU" titled "New Moon Continent" [1] Financial Performance - Noah Holdings reported a net profit attributable to shareholders of 179 million yuan for Q2, a year-on-year increase of 79% driven by strong growth in investment product distribution [1] - Trip.com Group reported a net profit of 4.846 billion yuan for Q2, an increase of 26.43% year-on-year [1] - Shijiazhuang Pharmaceutical Group announced a mid-year profit attributable to equity holders of approximately 283.5 million HKD, a year-on-year decrease of about 58.7% [1] - Zhongsheng Holdings reported a mid-year profit attributable to shareholders of 1.011 billion yuan, a decrease of 36% year-on-year [1] - SF Express City reported an adjusted net profit of approximately 160 million yuan, a year-on-year increase of 139% [1] - Baidu's subsidiary reported a mid-year profit attributable to shareholders of 47.999 million yuan, returning to profitability [1] - Li Auto reported a net profit of 1.093 billion yuan for Q2, a decrease of 0.91% year-on-year [1] - Shanghai Industrial Holdings reported a mid-year profit attributable to shareholders of 1.042 billion HKD, with an interim dividend of 0.42 HKD per share [1] - Beijing Holdings reported a mid-year profit attributable to shareholders of 3.404 billion yuan, an increase of 8.07% year-on-year [1] - Qingdao Port reported a net profit of 2.842 billion yuan, a year-on-year increase of 7.58% [1] - New China Life Insurance reported a net profit of 14.799 billion yuan, a year-on-year increase of 33.5% [1] - China Galaxy Securities reported a net profit of 6.488 billion yuan, a year-on-year increase of 47.86% [1] - China Taiping reported a 12.2% increase in shareholder profit, with a nearly 23% high growth in life insurance new business value [1] - China Resources Gas reported a mid-year profit attributable to shareholders of 2.403 billion HKD, a year-on-year decrease of 30.5% [1] - SF Holding reported a net profit of 5.738 billion yuan, a year-on-year increase of 19.37%, with volume growth exceeding the overall express delivery industry [1] - SMIC reported a net profit of approximately 320 million USD, a year-on-year increase of 35.6% [1] - SenseTime reported a revenue growth of 35.6% year-on-year, reaching 2.358 billion yuan [1] - BeiGene reported a net profit of 95.59 million USD, returning to profitability [1] - Fubo Group reported a mid-year net profit exceeding 100 million, driven by AI [1] - CITIC Securities reported a net profit of 13.719 billion yuan, a year-on-year increase of 29.79% [1] - Huadian International Power reported a net profit of 3.904 billion yuan, a year-on-year increase of 13.15% [1] Additional Financial Performance - Zhou Hei Ya reported a mid-year profit attributable to shareholders of 108 million yuan, a year-on-year increase of 228% [2] - Haitian Flavoring reported a net profit of 3.91 billion yuan, a year-on-year increase of 13.3% [2] - Dasheng Holdings reported a mid-year adjusted net profit growth of 79.6% driven by store expansion and membership growth [2] - CITIC Securities reported a net profit of 4.509 billion yuan, a year-on-year increase of 57.77% [2] - Huitongda reported a mid-year profit attributable to shareholders of 13.9 million yuan, a year-on-year increase of 10.81% [2] - Yunfeng Financial reported a mid-year profit attributable to shareholders of 486 million HKD, a year-on-year increase of 142.04% [2] - Jiufang Zhitu reported a mid-year profit attributable to shareholders of 865 million yuan, returning to profitability [2] - Air China reported a net loss of approximately 1.806 billion yuan, a year-on-year narrowing of 35.11% [2] - ZTE reported a net profit of approximately 5.058 billion yuan, a year-on-year decrease of 11.77% [2] - China Merchants Securities reported a net profit of 5.186 billion yuan, a year-on-year increase of 9.23% [2] - Datang Power reported a net profit of approximately 4.874 billion yuan, a year-on-year increase of 50.3% [2] - China Pacific Insurance reported a net profit of 27.885 billion yuan, a year-on-year increase of 11% [2] - Beijing Capital International Airport reported a post-tax loss of 164 million yuan, a year-on-year narrowing of 56.48% [2] - Dongguan Rural Commercial Bank reported a mid-year net profit of 2.629 billion yuan [2] - Shenzhen Holdings reported a mid-year loss attributable to shareholders of 2.618 billion HKD, a year-on-year increase of 137.76% [2] - China Southern Airlines reported a net loss of 1.534 billion yuan, a year-on-year increase of 45.54% [2] - COSCO Shipping Holdings reported a profit attributable to shareholders of 17.528 billion yuan, a year-on-year increase of 3.9% [2] - Guofu Hydrogen Energy reported revenue of 10.9 million yuan, actively expanding overseas cooperation and business layout [2] - Kangsheng Global reported a mid-year gross profit of 197 million yuan, with stable progress across all businesses [2] - Dongfang Electric reported a net profit of 1.91 billion yuan, a year-on-year increase of 12.91%, maintaining the industry's leading market share in nuclear and gas power [2] - Eagle Eye Technology reported a profit of 443,000 yuan, returning to profitability [2] - Haier Smart Home reported a profit attributable to shareholders of 12.033 billion yuan, a year-on-year increase of 15.6% [2] - EDA Group Holdings reached a partnership agreement with UTCPAY to collaborate in digital asset trading, Web3 technology, and blockchain applications [2] - Gilead Sciences reported that ASC30 oral tablets showed good and differentiated pharmacokinetic characteristics in the U.S. Phase Ib multi-dose escalation study [2]

Summary of SF Express City Conference Call Company Overview - **Company**: SF Express City - **Period**: First half of 2025 Key Financial Metrics - **Revenue**: Exceeded 10.24 billion yuan, a year-on-year increase of 49% [3] - **Gross Profit**: 680 million yuan, up 44% year-on-year, with a gross margin of 6.7% [3] - **Net Profit**: 140 million yuan, net profit margin of 1.3%, a 100% increase year-on-year [3] - **Adjusted Net Profit**: 160 million yuan, exceeding expectations [16] Business Performance Revenue Breakdown - **Same-City Delivery Revenue**: 5.4 billion yuan, a 55% increase year-on-year [7] - **Last-Mile Delivery Revenue**: 4.4 billion yuan, a 57% increase year-on-year [9] - **Consumer Delivery Revenue**: 1.3 billion yuan, a 13% increase year-on-year [8] Active Users and Merchants - **Active Merchants**: Over 850,000, a growth of over 50% [4] - **Annual Active Consumers**: 24.77 million, with an increasing repurchase rate [4] - **Active Couriers**: Approximately 1.14 million, with productivity up 38% [4][12] Strategic Initiatives Market Expansion - **Focus on Lower-Tier Markets**: Rapid revenue growth in lower-tier markets, exceeding overall market growth by 1.5 times [19] - **Partnerships**: Strengthened collaborations with major clients in the food and retail sectors, leading to significant revenue increases [7][27] Technology and Innovation - **AI Integration**: Implementation of AI models in courier management and customer service, with over 300 autonomous vehicles deployed by mid-2025 [11][32] - **Cost Efficiency**: Aiming to reduce service fees from 5.4% to 4% through improved order density and AI efficiency [18] Competitive Landscape - **Market Position**: The company sees a long-term growth potential in the instant delivery sector, despite increased competition [21] - **Brand Partnerships**: Established strong relationships with major brands, enhancing competitive advantages [21][27] Challenges and Responses - **Market Competition**: The company faced challenges from increased competition in the food delivery sector but managed to stabilize operations and expand key service areas [19][24] - **Cost Management**: Despite rising costs due to increased service demands, the company maintained stable gross margins through effective resource allocation [14][15] Future Outlook - **Growth Projections**: Anticipates continued high growth in instant logistics, with expectations for Q3 performance to surpass Q2 [13][28] - **Investment Plans**: Plans to increase R&D spending by over 30% to enhance AI and autonomous vehicle technologies [19][33] Additional Insights - **Rider Management**: Unique direct management model for couriers, providing social security and career advancement opportunities, resulting in a 65% increase in high-income riders [5][26] - **Consumer Behavior**: The company is adapting to consumer preferences for convenience and cost-effectiveness, particularly in lower-tier markets [8][19] This summary encapsulates the key points from the conference call, highlighting the financial performance, strategic initiatives, market challenges, and future outlook of SF Express City.

Core Insights - SF Express City achieved a significant revenue growth of 48.8% year-on-year, reaching approximately 10.236 billion RMB, marking its first half-year revenue exceeding 10 billion RMB [2] - The company reported a net profit attributable to shareholders of approximately 137 million RMB, a remarkable increase of 120.4% year-on-year, setting a new record [2] - The company anticipates a higher order volume in the third quarter compared to the first half and the second quarter of the year [2] Revenue Growth Drivers - The growth in revenue is attributed to the rapid expansion of the food delivery and instant retail sectors, which increased demand for instant delivery services, with same-city delivery service orders growing over 50% year-on-year [3] - The revenue from same-city delivery services increased by 43.1% to approximately 5.779 billion RMB, with merchant-facing same-city delivery services contributing about 4.467 billion RMB, a 55.4% increase [3] - Tea beverage delivery revenue saw a remarkable growth of 105% year-on-year, driven by frequent marketing activities from food delivery merchants [3][4] Market Dynamics - The tea beverage category has benefited the most from the "food delivery war," due to high standardization and production capacity, as well as high consumption frequency [4] - The company is focusing on enhancing operational efficiency in lower-tier cities, with daily average order numbers in these areas doubling during the reporting period [4] - SF Express City is exploring innovative business increments, including partnerships with major tea beverage clients in Hong Kong and utilizing autonomous vehicles for delivery solutions [4][6] Operational Efficiency - The company achieved a 56.9% year-on-year increase in revenue from last-mile delivery services, amounting to approximately 4.457 billion RMB [6] - The number of active merchants on the platform reached 850,000, a 55% increase, while active consumers grew to 24.77 million, a 13% increase [6] - The company is implementing digital operations and AI decision-making to enhance efficiency, with over 300 autonomous vehicles already in operation across more than 60 cities [6][7] Future Outlook - SF Express City aims to strengthen its "rider + autonomous delivery" network capabilities, integrating autonomous delivery with the existing rider network to improve efficiency [7] - The company plans to invest thousands of autonomous vehicles by 2028, with expectations of significant cost savings as technology matures [7]

Core Viewpoint - SF Express City achieved significant growth in its mid-term performance, with revenue surpassing 10.236 billion RMB for the first time, driven by the rapid expansion of the food delivery and instant retail sectors [1][2]. Financial Performance - Revenue increased by 48.8% year-on-year to approximately 10.236 billion RMB, with gross profit rising by 43.8% to about 681 million RMB [1]. - Net profit attributable to shareholders surged by 120.4% to around 137 million RMB, marking a record high [1]. - Adjusted net profit reached approximately 160 million RMB, reflecting a year-on-year growth of 139.0% [1]. Market Dynamics - The "food delivery war" is a focal point for investors, with the CEO highlighting the high growth rate of near-field retail in China and the increasing penetration of the industry [1]. - The company anticipates a higher order volume in Q3 compared to the first half of the year [1]. Business Segments - Instant delivery service orders grew by over 50% year-on-year, significantly boosting revenue [2]. - Revenue from same-city delivery services rose by 43.1% to approximately 5.779 billion RMB, with merchant-facing delivery services contributing about 4.467 billion RMB, a 55.4% increase [2]. - Tea beverage delivery revenue saw a remarkable growth of 105% year-on-year [2]. Operational Efficiency - The company is enhancing operational efficiency in lower-tier cities, with daily order numbers in these areas doubling during the reporting period [3]. - SF Express City is exploring innovative business models, including partnerships with major tea brands and the use of autonomous vehicles for delivery [3][5]. Consumer Engagement - The number of active merchants on the platform reached 850,000, a 55% increase, while active consumers grew to 24.77 million, up 13% [6]. - The company reported a 56.9% increase in revenue from last-mile delivery services, amounting to approximately 4.457 billion RMB [5]. Technological Advancements - The company is investing in digital operations and AI decision-making to enhance efficiency, with over 300 autonomous vehicles already in operation across more than 60 cities [6][8]. - The goal is to deploy thousands of autonomous vehicles by 2028, with expectations of significant cost savings as technology matures [8].

Investment Rating - The investment rating for the company is "Outperform" (maintained) [3][7]. Core Insights - The company reported significant revenue and profit growth in H1 2025, with revenue reaching 10.24 billion yuan, a year-on-year increase of 49%, and adjusted net profit of 160 million yuan, up 139% [7]. - The company's diversified growth is driven by the demand spillover from the food delivery battle, with revenue from merchant same-city delivery services increasing by 55% to 4.47 billion yuan [7]. - The last-mile delivery service revenue also saw a 57% increase, reaching 4.46 billion yuan, attributed to high growth in group e-commerce orders and efficient rider management [7]. - Consumer-facing same-city delivery services grew steadily, with revenue of 1.31 billion yuan, a 13% increase, indicating significant future growth potential [7]. - The company is experiencing continuous scale effects, with a gross margin of 6.7% and an adjusted net profit margin of 1.6%, and is expected to further improve net profit margins through increased order density and AI optimization [7]. - The profit forecasts for 2025-2027 have been raised, with expected net profits of 302 million yuan, 501 million yuan, and 920 million yuan respectively, reflecting year-on-year growth rates of 127.87%, 66.02%, and 83.68% [7]. Financial Data and Profit Forecast - Revenue projections for the company are as follows: - 2023: 12.4 billion yuan - 2024: 15.746 billion yuan - 2025E: 21.008 billion yuan - 2026E: 28.087 billion yuan - 2027E: 36.778 billion yuan - The corresponding year-on-year growth rates are 20.80%, 26.98%, 33.42%, 33.69%, and 30.95% [4]. - Net profit forecasts are as follows: - 2023: 51 million yuan - 2024: 132 million yuan - 2025E: 302 million yuan - 2026E: 501 million yuan - 2027E: 920 million yuan - The projected price-to-earnings ratios for 2025-2027 are 39.78x, 23.96x, and 13.04x respectively [4][8].

Core Insights - SF Express City achieved a significant revenue growth of 48.8% year-on-year, reaching approximately 10.236 billion RMB, marking the first time the company surpassed the 10 billion RMB threshold in half-year revenue [1] - The company reported a net profit attributable to shareholders of approximately 137 million RMB, a remarkable increase of 120.4% year-on-year, setting a new record [1] - The growth was driven by the rapid expansion of the food delivery and instant retail sectors, leading to a more than 50% increase in order volume for same-city delivery services [1][2] Revenue Breakdown - Same-city delivery service revenue grew by 43.1% year-on-year, amounting to approximately 5.779 billion RMB, with food delivery demand significantly contributing to this growth [1] - Revenue from non-food scenarios maintained a steady growth trend, increasing by 28.6% year-on-year to 2.142 billion RMB, with merchant-facing non-food scenario revenue rising by 35.3% [1] Business Partnerships and Market Position - The company achieved a revenue of approximately 4.467 billion RMB from merchant-facing same-city delivery services, reflecting a year-on-year growth of 55.4% [2] - SF Express City maintained a leading market share through long-term collaborations with major clients, leveraging its comprehensive service capabilities across various industries [2] Service Capabilities and Innovations - The company enhanced its service offerings by providing multi-channel order management and delivery services for chain restaurants, resulting in significant revenue growth for several major brands [3] - In the retail sector, SF Express City deepened partnerships with national chain supermarkets, offering customized services such as warehouse-to-store delivery and direct-to-home services [3] Consumer-Focused Services - Revenue from consumer-facing same-city delivery services reached approximately 1.312 billion RMB, a year-on-year increase of 12.7%, with strong growth in business scenario revenue [4] - The last-mile delivery service saw a robust growth of 56.9% year-on-year, totaling approximately 4.457 billion RMB, driven by increased demand for flexible collection services [4] Technological Advancements - The company is advancing operational digitization and AI decision-making to enhance efficiency, with applications in rider management, customer service, and merchant operations [5] - Over 300 autonomous vehicles have been deployed in daily operations across more than 60 cities, contributing to a more efficient delivery ecosystem [5] Strategic Vision - SF Express City continues to embrace market opportunities driven by the diversification of traffic, increasing penetration of food delivery and instant retail, and the acceleration of same-city logistics [6] - The company is establishing a solid foundation for its leadership position in the third-party instant delivery industry through technological innovations and strategic partnerships [6]