Core Viewpoint - Meituan is launching a "Rider Grievance Care Program" on November 5 to support delivery riders facing unjust criticism and conflicts, aiming to enhance the delivery ecosystem and industry health [1] Group 1 - The program addresses issues such as unwarranted accusations and malicious harassment that riders frequently encounter in the instant delivery sector [1] - Meituan's initiative includes proactive support, quick response, and substantial compensation to help riders feel supported during difficult times [1] - Full details of the "Rider Grievance Care Program" will be revealed on November 5 [1]

Core Insights - The company Shansong has been recognized as the "Leading Brand in One-to-One Urgent Delivery" for eleven consecutive years, highlighting its sustained leadership in the instant delivery sector and its unique business model [1][2] Group 1: Service Model and Efficiency - Shansong operates on a "one order at a time" service philosophy, ensuring direct point-to-point delivery, which guarantees speed and maximizes item safety. The average delivery time is 7 minutes for pickup and 26 minutes for city-wide delivery [1] - The company utilizes an intelligent big data system that can accurately identify user needs and match them with the best delivery personnel within one second. For high-value items, the system prioritizes couriers with the highest safety ratings [1] Group 2: Brand Image and Market Position - Shansong has established a strong brand image over eleven years, becoming synonymous with instant delivery services. The term "Shansong" is now a preferred choice for consumers seeking urgent delivery [2] - The company has built a large team of nearly 3 million couriers, which is crucial for maintaining high service quality. Couriers focus on one customer at a time, allowing for more attentive and personalized service [2] - Shansong holds approximately 33.9% market share in China's independent one-to-one delivery service market, operating in 297 cities nationwide [2]

Core Insights - The company Shansong has been recognized as the "Leading Brand in One-to-One Urgent Delivery" for eleven consecutive years, highlighting its sustained leadership in the instant delivery sector and its unique business model [1][3] Group 1: Service Model and Competitive Advantage - Shansong adheres to a "one order at a time" service philosophy, ensuring point-to-point delivery that guarantees speed and maximizes item safety [3] - The average delivery time for Shansong is 7 minutes for pickup and 26 minutes for citywide delivery, showcasing its speed advantage [3] - The company utilizes an intelligent big data system that can accurately identify user needs and match the best delivery personnel within one second [3] - Specialized delivery solutions, such as "cake delivery" and equipment for high-value items, cater to diverse customer needs [3] Group 2: Brand Image and Market Position - Shansong has built a strong brand image over eleven years, establishing user loyalty through high-quality service, making "Shansong" synonymous with instant delivery services [3] - The company operates in 297 cities across China and has nearly 3 million delivery personnel, indicating a vast operational scale [4] - Shansong holds approximately 33.9% market share in China's independent one-to-one delivery service sector, reflecting its significant presence in the industry [4] Group 3: Service Quality and Customer Retention - The large pool of delivery personnel ensures high-quality service, as they are more skilled and flexible, focusing on one customer at a time [3] - The unique competitive barrier created by Shansong makes it a preferred choice for users who prioritize service quality, reducing the risk of trial and error with lesser-known platforms [3]

Core Insights - The third "Zhengzhou Entrepreneur Day" event focuses on how AI can empower industrial ecosystems, highlighting its importance for business survival and competitiveness [1][4] - AI is seen as a key driver for the transformation of production models and technological frameworks in enterprises, with significant implications for the next 10 to 20 years [1][3] Group 1: AI Empowerment in Industry - AI is recognized as an essential choice for upgrading industrial chains and optimizing ecosystems, with many entrepreneurs emphasizing its transformative potential [1] - Companies like Super Fusion Digital Technology Co. and Zhengzhou Henda Intelligent Control Technology Co. are leveraging AI to redefine manufacturing standards and enhance production efficiency [1][3] - The use of generative AI is reshaping the instant delivery industry, significantly improving operational efficiency and user experience [1] Group 2: Automation and Competitiveness - The Shanghai Automotive Group's Zhengzhou branch has achieved a 99% automation rate in its body shop, showcasing the integration of automation, digitalization, and intelligence across operations [3] - The establishment of advanced technology projects, such as new energy battery factories and global cloud computing data centers, is enhancing Zhengzhou's position in the new energy vehicle parts industry [4] - Zhengzhou has developed a complete ecosystem that includes independent research and development of core components, vehicle manufacturing, and intelligent empowerment [4]

Core Insights - The "Double Eleven" shopping festival has entered its 17th year, featuring the longest promotional period ever at one month, highlighting intensified competition among platforms [1] - Instant retail has evolved from a supplementary option in e-commerce to a critical battleground, driven by the need to tap into near-field consumption as traditional traffic growth plateaus [2][6] - The demand for third-party delivery services is increasing, with companies that can coordinate both far-field and near-field delivery capabilities expected to play a significant role [3][5] Industry Trends - Instant retail is becoming a core growth driver for "Double Eleven," with platforms like Taobao and JD.com implementing "hourly delivery" and "instant delivery" to engage existing users [2] - Data shows significant growth in instant retail orders, with Taobao Flash Sales seeing coffee and convenience store orders increase by 800% and 670% respectively on the first day of sales [2] - The importance of third-party delivery services is underscored by the need for efficient logistics solutions, especially for e-commerce platforms that lack their own delivery systems [5][9] Company Developments - SF Express's Same City service has established itself as a key player in the third-party delivery sector, providing integrated supply chain services and supporting major brands like McDonald's and Starbucks [3][8] - The company has developed a one-stop access solution for merchants, enhancing operational efficiency by unifying delivery across multiple platforms [3][5] - SF Express's Same City service has reported a 150% year-on-year increase in service order volume during the first half of 2025, demonstrating its effectiveness in meeting rising demand [9] Competitive Landscape - The competition in instant retail is shifting from merely speed to a focus on differentiated customer experiences, with various stakeholders having unique delivery requirements [6] - Third-party delivery services are becoming essential for accommodating customized demands, with SF Express offering tailored solutions for different product categories [6][11] - The integration of traditional logistics with instant retail is crucial, as the expectation for "minute-level" delivery times extends to traditional logistics operations [9][11]

Core Insights - The "Double Eleven" shopping festival has entered its 17th year, featuring the longest promotional period ever at one month, highlighting intensified competition among platforms [2] - Instant retail has evolved from a supplementary option in e-commerce to a critical battleground, driven by the need to tap into near-field consumption value as traffic growth plateaus [3][4] - Third-party delivery services are becoming essential infrastructure for instant retail, with companies like SF Express playing a pivotal role in supporting major brands and platforms during peak shopping periods [4][10] Group 1: Instant Retail and Market Dynamics - Instant retail is now a core growth area for "Double Eleven," with significant increases in order volumes for various categories, such as coffee and convenience store items, which saw year-on-year growth of 800% and 670% respectively [3] - The demand for instant delivery services is rising, with companies that can coordinate both far-field and near-field delivery capabilities expected to play a larger role in the market [4][7] - The competition in instant retail has shifted from merely speed to a focus on differentiated user experiences, with varying requirements based on product categories and platforms [8] Group 2: Role of Third-Party Delivery Services - SF Express has established itself as a key player in the third-party delivery sector, providing integrated supply chain services that enhance operational efficiency for merchants [5][10] - The company has formed deep partnerships with major brands across various sectors, including fast food and retail, to offer comprehensive delivery solutions [5][10] - The integration of third-party delivery services is crucial for traditional logistics, especially in enhancing last-mile delivery efficiency during peak periods [11][13] Group 3: Future Trends and Implications - The trend towards collaborative logistics, as encouraged by government initiatives, is expected to drive the growth of instant retail and third-party delivery services [7] - As instant retail penetration increases, the value of third-party delivery infrastructure is anticipated to expand, with companies like SF Express positioned to meet customized delivery demands across multiple platforms [13] - The emphasis on delivery capabilities will ultimately influence user experience and conversion rates during major shopping events like "Double Eleven" [13]

Core Viewpoint - The company is positioned to benefit from the rapid growth of the instant delivery industry, driven by multiple factors including the diversification of demand, expansion of food delivery services, and the digital retail boom in lower-tier markets [1][2]. Industry Summary - The instant delivery industry is expected to experience a CAGR of 18.9% from 2023 to 2028, with order volume projected to grow at a CAGR of 14.5% during the same period [1]. - The demand for high-quality instant delivery services is increasing as merchants seek better logistics solutions amid the rapid growth of the instant retail sector [3]. Company Summary - The company, as the largest independent third-party instant delivery service platform in China, has achieved comprehensive coverage of four main consumption scenarios: food delivery, local retail, near-field e-commerce, and near-field services [2]. - The company reported a net profit of 0.51 billion yuan in 2023, marking its first profit after losses, and is projected to achieve a net profit of 1.3 billion yuan in 2024, representing a year-on-year growth of 159% [2]. - The company is leveraging its independent third-party status and collaboration with SF Group to expand its customer base and enhance profitability through scale effects [3]. - The company is investing in smart delivery solutions, including unmanned delivery and AI technologies, to improve delivery efficiency and service quality, which is expected to optimize cost structures and enhance profitability [3]. Financial Projections - The company is expected to achieve net profits of 3.09 billion yuan, 5.85 billion yuan, and 8.91 billion yuan from 2025 to 2027, with year-on-year growth rates of 133%, 89.4%, and 52.4% respectively [4]. - The company's PE valuation for 2025-2027 is projected to be below the average of comparable companies, indicating potential for investment [4].

Core Insights - The rapid development of the digital economy has led to the flourishing of various instant delivery platforms, reshaping the operational logic of businesses while intensifying competition through aggressive promotional tactics [1] Delivery Fee International Differences - In many countries like the US, UK, and India, delivery fees are typically paid directly by consumers at the time of order settlement, often supported by membership systems that enhance consumer perception of delivery costs [2] - In China, however, the burden of delivery fees often falls on merchants, especially small and medium-sized businesses, as platforms encourage them to absorb these costs to boost sales [2][3] Theoretical Origins of Delivery Fees - Delivery fees have evolved from being a basic logistics cost to a critical tool for market competition and profit distribution in the platform economy [4] - Initially, consumers bore the delivery costs, but over time, platforms began to subsidize these costs to attract users, leading to a shift in who pays [5] Shift in Delivery Fee Responsibility - The responsibility for delivery fees has increasingly shifted from consumers to merchants, particularly in competitive sectors where small businesses feel pressured to absorb these costs to remain visible [6][7] Long-term Implications of Delivery Fee Strategies - Relying on delivery fee absorption as a competitive strategy can lead to a "path dependency trap," where businesses neglect product quality and brand building, ultimately increasing customer acquisition costs [8] - Larger brands with established supply chains and brand recognition can better manage delivery costs and maintain order volumes without resorting to price wars [8] Recommendations for Industry Improvement - To address the over-competition in delivery fees, a multi-faceted approach involving platform governance, regulatory oversight, merchant upgrades, and consumer education is necessary [10] - Platforms should shift towards a value-oriented algorithm that prioritizes quality and service over immediate sales metrics, thereby reducing the reliance on price competition [10][11] Consumer and Regulatory Perspectives - Consumers should be educated to value quality and service over the lowest price, fostering a culture of rational consumption [12] - Regulators need to enhance competition rules and transparency in cost allocation, ensuring fair practices in the delivery fee structure [13][14]

Core Viewpoint - The report from Shanxi Securities projects that SF Express (09699) will see significant growth in net profit from 2025 to 2027, with estimates of 309 million, 585 million, and 891 million yuan respectively, reflecting year-on-year growth rates of 133%, 89.4%, and 52.4% [1] Company Summary - SF Express is positioned as a leading independent third-party instant delivery service platform in China, benefiting from the booming instant delivery industry and the decentralization of online traffic [1][2] - The company is expected to leverage its collaboration with SF Group in traditional express delivery and supply chain sectors to expand its customer base and enhance business scale, thereby improving profitability through economies of scale and advancements in unmanned delivery and AI [1] Industry Summary - The instant delivery industry is anticipated to experience rapid growth driven by multiple factors, including the acceleration of traffic diversification, the coexistence of various instant retail businesses, the expanding supply of food delivery services, and the fast development of digital retail in lower-tier markets [2] - According to iResearch, the CAGR for the instant delivery industry from 2023 to 2028 is projected to be 18.9%, while the order volume CAGR is expected to be 14.5% according to Sullivan [2] - Companies with independent third-party attributes and comprehensive business coverage in the instant delivery sector are rare, positioning SF Express favorably to capitalize on industry trends and achieve rapid growth [2]

Core Viewpoint - Shanxi Securities forecasts that SF Express City (09699) will achieve net profits attributable to the parent company of 309 million, 585 million, and 891 million yuan for the years 2025-2027, representing year-on-year growth of 133%, 89.4%, and 52.4% respectively. The company is given an "Overweight-A" rating for its first coverage [1]. Group 1: Company Performance - The projected net profits for SF Express City from 2025 to 2027 are 3.09 billion, 5.85 billion, and 8.91 billion yuan, with significant year-on-year growth rates [1]. - The company's price-to-earnings (PE) valuation for 2025-2027 is below the average of comparable companies [1]. - SF Express City benefits from being a leading independent third-party instant delivery service platform, with a unique combination of "third-party + full-scenario coverage + multi-channel compatibility" [1]. Group 2: Industry Outlook - The instant delivery industry is expected to experience rapid growth, driven by the acceleration of traffic decentralization, the coexistence of diverse instant retail businesses, and the expansion of food delivery supply [2]. - According to iResearch, the compound annual growth rate (CAGR) of the instant delivery industry from 2023 to 2028 is projected to be 18.9% [2]. - The order volume CAGR for the instant delivery industry from 2023 to 2028 is forecasted to be 14.5% according to Sullivan [2]. - Companies with independent third-party attributes and full-scenario business coverage in the instant delivery sector are rare, positioning SF Express City favorably for rapid growth [2].