Core Viewpoint - SF Holding reported strong performance in the first half of 2025, with significant growth in multiple business metrics and plans for a mid-term dividend of 2.32 billion RMB, reflecting a commitment to sustainable development and shareholder returns [2][5]. Financial Performance - In H1 2025, the company achieved a business volume of 7.85 billion parcels, a year-on-year increase of 25.7%, significantly outpacing the industry average growth rate [2]. - Revenue reached 146.9 billion RMB, up 9.3% year-on-year, with express logistics revenue at 109.3 billion RMB, growing 10.4% [2]. - Net profit attributable to shareholders was 5.74 billion RMB, a 19.4% increase year-on-year, with a net profit margin of 3.9%, up 0.3 percentage points [2]. Business Segment Growth - The express delivery segment saw a revenue growth rate of 6.8%, with a 19% increase in the volume of time-sensitive parcels [3]. - Economic express revenue grew by 14.4%, with a business volume increase of 30%, driven by differentiated product strategies [3][4]. - The company's supply chain and international business revenue increased by 9.7%, despite short-term disruptions from trade policies [5]. Operational Efficiency - The company is focused on cost reduction and efficiency improvement through lean management and structural innovations [6]. - A new employee stock ownership plan was introduced to align employee interests with long-term company growth, covering up to 200 million A-shares, approximately 4% of the total share capital [7]. Strategic Outlook - The company anticipates continued growth in the second half of 2025, leveraging resource collaboration to enhance customer experience [8]. - The international business showed resilience with nearly 10% revenue growth, and the company plans to deepen service coverage in key Asian markets [9].

Summary of the Express Delivery Industry Conference Call Industry Overview - The express delivery industry experienced a growth rate of 21.6% in Q1, but dropped below 20% in April due to ongoing price wars. The competition is primarily concentrated in the central and northern regions of China, while traditional grain-producing areas maintain stable prices [1][3][5]. - Major companies like Shentong (申通) and YTO Express (圆通) have shown strong performance, with Shentong achieving a 19% increase in single ticket revenue in April, surpassing the industry average [1][7]. Key Insights and Arguments - **Price Stability and Competition**: Shentong has demonstrated remarkable price stability, with its franchisees showing resilience and actively capturing market share without excessive support from headquarters. This contrasts with other companies where franchisees lack motivation to seize market share [1][7]. - **Cost Control Strategies**: Companies are optimizing core costs such as transit and trunk transportation to cope with price competition. Yunda (运达) has achieved a historical low cost of 0.62 yuan per ticket, which is the lowest in the industry [1][8]. - **Single Ticket Delivery Fees**: Delivery fees have gradually decreased with the growth in business volume, but the extent of decline varies among companies. Shentong's delivery fees remained stable in Q1, validating its strategy of balancing profit and growth [1][9]. - **Capital Expenditure Disparities**: There is a divergence in capital expenditures among express delivery companies, with Zhongtong (中通) and YTO maintaining strong investments, indicating potential shifts in market share post-2025 [1][10]. Additional Important Points - **Market Sentiment and Stock Performance**: The overall market sentiment remains low, with stock prices of major companies declining despite Shentong's positive performance in Q1. SF Express (顺丰) has shown relative resilience due to its franchise model [2][13]. - **Regional Price Variations**: Prices in traditional grain-producing areas have not decreased significantly, while central and northern regions have seen substantial price drops, with some provinces experiencing growth rates of 30%-40% [6]. - **Future Industry Trends**: The express delivery industry is expected to face challenges in the upcoming months, with potential growth rates dropping to around 15% during the peak season. Companies may resort to price policies to enhance capacity utilization [14][15]. - **Impact of New Regulations**: New regulations are expected to influence the logistics industry significantly, promoting high-quality development and potentially providing government subsidies to leading companies [19][21]. Conclusion The express delivery industry is navigating a complex landscape characterized by price wars, varying performance among companies, and significant regional differences. Companies that effectively manage costs and maintain price stability, like Shentong and YTO, are likely to emerge stronger in the evolving market. The anticipated changes in capital expenditure and regulatory environment will also play a crucial role in shaping the industry's future dynamics.

Investment Rating - The investment rating for the company is "Outperform the Market" [6][18]. Core Views - The company achieved a significant milestone with its annual net profit exceeding 10 billion yuan, indicating strong potential for continued improvement in profitability [1][4]. - The company's revenue for 2024 is projected to be 284.42 billion yuan, reflecting a year-on-year growth of 10.1%, while the net profit is expected to reach 10.17 billion yuan, up 23.5% year-on-year [1][5]. - The company has successfully focused on high-margin express delivery services after divesting from unprofitable segments, leading to improved profitability metrics [2][15]. Revenue and Profitability - The express delivery segment generated revenue of 122.21 billion yuan in 2024, growing 5.8% year-on-year, despite macroeconomic pressures [2][15]. - The company has implemented cost control measures and operational efficiency improvements, resulting in a net profit margin increase to 3.58% for the year [2][16]. - The fourth quarter of 2024 saw a revenue of 77.56 billion yuan, with a net profit of 2.55 billion yuan, marking a year-on-year increase of 29.6% [1][10]. Capital Expenditure and Financial Health - The company reduced its capital expenditure to 9.9 billion yuan in 2024, a decrease of 27% year-on-year, which is expected to further enhance profitability [3][16]. - The company is well-positioned to navigate economic cycles due to its robust operational framework and resource management strategies [3][16]. Long-term Outlook - The company’s net profit forecasts for 2024-2026 are 11.77 billion yuan, 13.73 billion yuan, and 15.60 billion yuan, respectively, indicating a strong growth trajectory [4][18]. - The company plans to increase its dividend payout ratio to 40% in 2024, up by 5 percentage points from the previous year, reflecting its commitment to shareholder returns [3][16].

业绩 2025 年 3 月 28 日，顺丰控股发布 2024 年年度报告。2024 年公司 实现收入 2844 亿元，同比上升 10%；归母净利为 102 亿元，同比 增长 23.5%；其中 Q4 公司实现收入 776 亿元，同比上升 12%；归 母净利为 26 亿元，同比增长 30%。 经营分析 时效件增速具备韧性，经济件增速超行业平均。2024 年公司收入 同比上升 10%，完成件量 133 亿票，同比增长 11.3%，分业务看： （1）时效快递：2024 年收入增速 5.8%，高于国内 GDP 增速， 件量同比增长 12%；（2）经济快递：2024 年收入（不含丰网）同 比增长 11.8%，件量同比增长 18%。（3）快运板块：2024 年收入 同比增长 13.8%，其中货量同比增长超 20%。（4）同城板块：收 入实现超 22% 的突破性增长，净利润同比增长 162%。（5）供应链 及国际板块：2024 年收入同比增长 17.5%，国际快递收入同比增 速超过 20%。 坚持精益化管控提升管理效益，全年盈利能力同比改善。2024 年 公司不含 KLN 人工成本占比占收入比同比上升 0.8pct，运力成本 ...