Investment Rating - The report assigns an "Accumulate-A" rating to the company for the first time [2][7]. Core Insights - The company is positioned to benefit from the rapid growth of the instant delivery industry, with a projected CAGR of 18.9% from 2023 to 2028 [2][45]. - The company has achieved profitability for the first time in 2023, with a net profit of 0.51 billion yuan, and is expected to continue growing significantly in the coming years [3][5]. - The company leverages its unique position as an independent third-party instant delivery service provider, which is rare in the market, to capture growth opportunities [4][50]. Summary by Sections Market Data - The closing price as of October 20, 2025, is HKD 12.910, with a market capitalization of HKD 118.43 billion [2]. Investment Highlights - The company is benefiting from the demand for instant retail, with multiple growth drivers including the expansion of food delivery services and the rapid development of digital retail in lower-tier markets [2][4]. - The instant delivery industry is expected to see a significant increase in order volume, with a CAGR of 14.5% from 2023 to 2028 [2][45]. Company Analysis - The company is the largest independent third-party instant delivery service platform in China, covering major consumption scenarios such as food delivery, local retail, and near-field e-commerce [3][52]. - The company has achieved a net profit of 1.3 billion yuan in 2024, representing a year-on-year growth of 159% [3][5]. Financial Data and Valuation - Revenue is projected to grow from 12.39 billion yuan in 2023 to 41.47 billion yuan in 2027, with a CAGR of 52% from 2024 to 2025 [8]. - The company’s net profit is expected to reach 8.91 billion yuan by 2027, with a year-on-year growth of 52.4% [5][8]. Strategic Positioning - The company aims to become the "first brand in new consumption delivery," supported by its integration with SF Group and its independent third-party logistics capabilities [3][52]. - The company is expanding its service offerings through technological advancements such as AI and autonomous delivery solutions [4][50].

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 among them [2] - Many businesses are resorting to aggressive promotional tactics, such as discounts and free delivery, to attract customers and increase order volumes [2] Delivery Fee International Differences - In many countries, delivery fees are typically paid directly by consumers at the time of order settlement, with membership systems used to attract consumers to purchase delivery service exemptions [3] - 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 [3][4] Theoretical Origins of Delivery Fees - Delivery fees have evolved from being a straightforward cost to a complex variable in market competition, influenced by various factors including logistics, labor costs, and platform algorithms [6][7] - The shift in responsibility for delivery fees from consumers to merchants reflects a broader trend in the competitive landscape of the Chinese market [7][8] Merchant Responsibility for Delivery Fees - The transfer of delivery fee responsibility to merchants is often a result of competitive pressures, where businesses must absorb these costs to improve visibility and conversion rates on platforms [8][9] - This behavior can lead to a "path dependency trap," where merchants focus on short-term gains through discounts rather than long-term brand and quality development [9][10] Long-term Strategies for Merchants - To break free from the cycle of relying on delivery fee absorption, businesses must prioritize brand building and product quality, moving away from price-based competition [10][12] - Large chain brands tend to have more flexibility in managing delivery fees due to their established brand recognition and supply chain efficiencies [9][10] Recommendations for Industry Improvement - Platforms should shift towards a value-oriented algorithm governance model that prioritizes quality and long-term growth over immediate transaction metrics [11][12] - Merchants should enhance their product and service quality to create differentiation and reduce reliance on delivery fee absorption as a competitive strategy [12][13] - Consumers should be educated to recognize the value of quality and service, moving away from a solely price-sensitive mindset [13][14] - Regulatory bodies should enforce fair competition rules and transparency in cost allocation to prevent the exploitation of merchants by dominant platforms [14]

Core Insights - The announcement of the "2025 Zhejiang Province Top 100 Enterprises" lists highlights the inclusion of SF Express City in both the "Top 100 Service Enterprises" and "Fastest Growing Top 100 Enterprises" categories, ranking 38th and 39th respectively, with a 3-position improvement in the service sector compared to last year [1][3] Group 1: Company Performance - SF Express City achieved a total revenue of 15.75 billion yuan in 2024, representing a year-on-year growth of 27% [3] - The company reported a gross profit of 1.07 billion yuan, up 35% year-on-year, and a net profit of 130 million yuan, which is a significant increase of 162% [3] - It is noted as the only company in the third-party delivery industry to have continuous high revenue growth and profitability for two consecutive years [3] Group 2: Business Model and Technology - SF Express City operates as the largest independent third-party instant delivery platform in China, providing comprehensive services across four main scenarios: food delivery, local retail, near-field e-commerce, and near-field services [3][4] - The company is enhancing operational efficiency through technology, utilizing an AI-integrated "CLS" city logistics system for optimal order and capacity matching, and has over 300 autonomous delivery vehicles operating in more than 60 cities [4] Group 3: Workforce and Community Support - SF Express City has invested 30 million yuan in a "Dream Fund" to support the development and welfare of its delivery personnel, helping nearly 3,800 riders advance to higher positions within the company [5] - The company has also allocated 12 million yuan to address riders' clothing needs and established over 4,000 rider stations, along with initiatives for housing subsidies and a "grievance fund" to assist riders [5] Group 4: Industry Outlook - Industry experts view SF Express City's inclusion in the dual top 100 lists as a significant recognition of its business value, especially as instant retail evolves into a new norm of "flash purchase at home" [6] - The company is positioned to benefit from the ongoing growth in instant retail and the diversification of traffic, with expectations for accelerated profit release due to its customized solutions and operational efficiencies [7]

Core Insights - The article highlights the recognition of SF Express's subsidiary, SF Same City, as one of the top companies in Zhejiang Province, reflecting its strong performance in both revenue and growth metrics [1][2]. Group 1: Rankings and Achievements - SF Same City was listed in both the "Top 100 Service Enterprises in Zhejiang" and the "Fastest Growing Top 100 Enterprises in Zhejiang," ranking 38th and 39th respectively, with a 3-position improvement in the service sector compared to the previous year [1]. - The rankings are based on the companies' revenue for the 2024 fiscal year and criteria such as a revenue growth rate exceeding 10% and R&D expenditure accounting for more than 3% of revenue [1]. Group 2: Financial Performance - In 2024, SF Same City achieved a revenue of 15.75 billion yuan, representing a year-on-year growth of 27%, with a gross profit of 1.07 billion yuan (up 35%) and a net profit of 130 million yuan (up 162%) [2]. - The company is noted as the only entity in the third-party delivery industry to have achieved continuous high revenue growth and profitability for two consecutive years [2]. Group 3: Community and Employee Initiatives - SF Same City invested 30 million yuan in a "Dream Fund" to support the development and welfare of its delivery riders, enhancing their skills and promoting internal career advancement [2]. - The company has established over 4,000 rider stations and provided various support measures, including a clothing fund and housing subsidies, to improve the living conditions of its riders [2].

Core Insights - SF Express City (09699) saw a nearly 4% increase in stock price, reaching HKD 13.38, with a trading volume of HKD 13.11 million [1] Delivery Performance - During the "Eleventh" holiday period, SF Express City reported a 63% year-on-year increase in average daily city delivery orders, with beverage orders surging by 168% [1] - Fast food, supermarket, and jewelry delivery orders also experienced significant double-digit growth [1] Tourism and Delivery Synergy - The "Cultural Tourism + Instant Delivery" model provided new experiences for tourists, with average daily order volumes in popular destinations like Harbin, Shanwei, Jingdezhen, and Hohhot showing multiple-fold increases [1] Service Demand - The "1-to-1 urgent delivery" service gained popularity during the holiday, with "exclusive delivery" orders on the Mid-Autumn Festival increasing over five times compared to last year [1] Strategic Advantages - According to Changjiang Securities, SF Express City leverages the SF brand advantage to offer customized solutions for vertical industries, outperforming other third-party logistics platforms in service quality and order volume [1] - The company collaborates with SF Group to reduce costs in the last-mile delivery, enhancing order scale and rider efficiency [1] Growth Outlook - The rapid growth of instant retail and the ongoing trend of diversified traffic are expected to accelerate the company's profit release [1]

Core Viewpoint - SF Express City (09699) has seen a nearly 4% increase in stock price, attributed to significant growth in delivery volumes during the "Eleventh" holiday period, indicating strong demand for its services [1] Group 1: Delivery Volume Growth - During the "Eleventh" holiday, SF Express City reported a 63% year-on-year increase in average daily city delivery orders, with beverage orders surging by 168% [1] - Fast food, supermarket, and jewelry delivery orders also experienced high double-digit growth in average daily volumes [1] - The "Cultural Tourism + Instant Delivery" model has led to multiple-fold increases in daily order volumes in popular tourist destinations such as Harbin, Shanwei, Jingdezhen, and Hohhot [1] Group 2: Service Demand and Performance - The "1-to-1 urgent delivery" service saw a more than fivefold increase in order volume on the day of the Mid-Autumn Festival compared to last year, reflecting high demand for timely delivery services [1] - Longjiang Securities noted that SF Express City leverages the SF brand advantage to provide customized solutions for vertical industries, outperforming other third-party logistics platforms in service quality and order scale [1] Group 3: Strategic Collaboration and Profitability - The company collaborates with SF Group to reduce costs in the last-mile delivery segment, enhancing order accumulation and improving rider efficiency [1] - The ongoing rapid growth of instant retail and the trend of diversified traffic are expected to accelerate the company's profitability release [1]

Core Insights - The average daily delivery volume of the third-party delivery platform Shunfeng Tongcheng during the recent National Day and Mid-Autumn Festival holiday increased by 63% compared to the same period last year [1] - The beverage segment saw a remarkable average daily order volume growth of 168% year-on-year, while fast food, supermarket goods, and jewelry also experienced significant double-digit growth [1] - Popular tourist cities such as Harbin, Shanwei, Jingdezhen, and Hohhot saw several-fold increases in average daily delivery volumes due to the "cultural tourism + instant delivery" model [1] - The "1-to-1 urgent delivery" high-efficiency gift service from Shunfeng Tongcheng gained consumer popularity, with the "exclusive delivery" orders on Mid-Autumn Day increasing over five times compared to last year [1] - Shunfeng Tongcheng plans to expand instant delivery services into a wider range of scenarios and areas as major consumption events like "Double Eleven" approach, aiming to showcase more service value [1]

Core Insights - The combination of the National Day and Mid-Autumn Festival resulted in an 8-day "Golden Week," significantly boosting consumer activity across the country [1][2] - During this holiday period, domestic travel reached 888 million trips, an increase of 123 million trips compared to the 7-day National Day holiday in 2024 [2] - Total domestic travel expenditure amounted to 809 billion yuan, up by 108.19 billion yuan from the previous year [2] Travel and Tourism - The Ministry of Culture and Tourism reported a stable overall performance in the cultural and tourism market, with diverse cultural and tourism products and services being offered [2] - Popular tourist destinations saw a surge in visitors, with innovative exhibitions and activities enhancing the experience [2] - The "cultural tourism + instant delivery" model has revitalized travel experiences, with significant increases in delivery volumes in popular cities [6] Instant Delivery Services - The average daily delivery volume for beverages increased by 168% during the holiday, reflecting heightened demand for shopping and dining [3][5] - Instant delivery services, particularly through platforms like SF Express, have become essential for meeting consumer needs during the holiday, with significant growth in delivery volumes for various categories [5][6] - The "1-to-1 urgent delivery" service saw a more than fivefold increase in volume, catering to the demand for holiday gifts and food items [7][8] Market Trends - The integration of instant delivery with cultural tourism is expected to enhance consumer experiences and drive further growth in the sector [10] - The holiday period demonstrated the diverse value of instant delivery services, from popular attractions to niche destinations, contributing to the holiday economy [10]

Core Insights - The combination of the National Day and Mid-Autumn Festival created an 8-day "Golden Week," leading to a significant boost in domestic travel and consumption, with 888 million domestic trips and total spending of 809 billion yuan, marking an increase of 1.23 billion trips and 108.2 billion yuan compared to the previous year [1] Group 1: Travel and Tourism - During the "Golden Week," there were 888 million domestic trips, an increase of 1.23 billion trips compared to the previous year [1] - Total domestic travel expenditure reached 809 billion yuan, up by 108.2 billion yuan from the previous year [1] - The "cultural tourism + instant delivery" model enhanced travel experiences, with significant increases in delivery volumes in popular tourist destinations like Harbin and Jingdezhen [8] Group 2: Instant Delivery Services - SF Express's same-city delivery service saw a 63% year-on-year increase in daily delivery volume during the holiday, with beverage deliveries increasing by 168% [4] - The "1-to-1 urgent delivery" service experienced over a 5-fold increase in volume on Mid-Autumn Day, catering to high-demand gift deliveries [10] - The integration of instant delivery with various retail sectors, including fast food and luxury goods, resulted in substantial growth in delivery volumes, indicating a shift towards a "buy anything at home" consumption model [7] Group 3: Consumer Behavior - The holiday period saw a surge in demand for beverages, with daily delivery volumes increasing by 168%, highlighting the popularity of new tea drinks as essential holiday items [5] - The rise of the "flash purchase" model has established instant delivery as a new norm for holiday consumption, with diverse shopping experiences being offered to consumers [7] - The demand for personalized delivery services, such as gift-giving and urgent deliveries, reflects changing consumer preferences during festive seasons [10]

Core Viewpoint - JD Logistics announced the acquisition of a wholly-owned subsidiary engaged in local instant delivery business from JD Group for $270 million, leading to a more than 4% increase in its stock price on the same day [2]. Group 1: Acquisition Details - The target business for acquisition is the instant delivery segment previously operated by Dada Group, which includes local instant retail and delivery services [2]. - JD Logistics believes the target business has commercial potential and opportunities for further expansion, aiming to enhance its service offerings and product matrix [2]. - The acquisition is expected to strengthen JD Logistics' competitive edge, open new business opportunities, and improve its last-mile delivery capabilities [2]. Group 2: Financial Performance - Dada's instant delivery business shows significant potential, with a projected net profit of 7.52 million yuan for the first half of 2025, indicating a shift to profitability [3]. - Dada's total net revenue for 2024 is reported at 9.664 billion yuan, a year-on-year decline of 8%, while the revenue from Dada's instant delivery service grew by 44.6% from 4.015 billion yuan in 2023 to 5.805 billion yuan in 2024 [3]. - The decline in overall performance is attributed to a 40.6% drop in revenue from JD's instant delivery service, primarily due to reduced online advertising and marketing service income [3]. Group 3: Industry Trends - JD has been actively expanding its instant delivery business alongside its food delivery services, with plans to provide full-time riders with social insurance starting March 1, 2025 [4]. - As of the second quarter of 2025, JD's full-time rider count has exceeded 150,000 [4]. - The instant retail sector is projected to have substantial growth potential, with the market expected to surpass 5 trillion yuan by 2027, driven by advancements in big data and AI technologies [4].