Professional Interpretation: Analysis of SF Holding's Mid-Year Report Performance in 2025 and Outlook on the Express Delivery Industry Trends

SF Holding: Revenue and profit both rise, but stock price has significantly pulled back

SF Holding released its semi-annual report for 2025 on August 28. In the context of intensified competition in the express logistics industry, the company achieved impressive performance with both revenue and profit rising. The specific data is as follows:

• Operating income: 146.86 billion RMB, a year-on-year rise of 9.26%
• Net profit attributable to shareholders: 5.74 billion RMB, a year-on-year rise of 19.37%
• Gross margin: 12.98%, a year-on-year decrease of 0.65 percentage points

It is worth noting that despite the strong performance and the company's announcement of an interim dividend of 0.46 RMB per share (with an expected total dividend of about 2.32 billion RMB, accounting for 40% of the net profit attributable to the parent company in the first half of the year), SF Holding's stock price still experienced a significant decline. On August 29, at market close, SF Holding's H-shares fell by 11.62%, closing at 40 HKD per share; A-shares dropped by 7.91%, closing at 44.57 RMB per share.

Business Segment Performance Analysis

1. Express Delivery and Large Items Division

As the core business segment of SF Holdings, the express and large parcel division performed as follows in the first half of 2025:

• Revenue: 104.77 billion yuan, a year-on-year rise of 8.21%, accounting for 71.34% of total revenue.
• Net Profit: 5.38 billion yuan, a year-on-year rise of 12.28%

2. Same-city Instant Delivery Division

The same-city instant delivery business has become the highlight of this financial report:

• Revenue: 5.49 billion yuan, a year-on-year rise of 38.9%
• Net profit: 140 million yuan, a rise of 120.43% year-on-year
• Order volume: year-on-year rise over 50%

3. Supply Chain and International Division

The international business is rapidly expanding, but is still in a state of loss:

• Revenue: 34.23 billion yuan, up 9.7% year-on-year
• Net loss: approximately 300 million yuan, a year-on-year reduction in loss of 48.47%

Industry Trends: Price Wars and “Anti-Involution”

In the first half of 2025, the order volume growth rate of SF Holding's domestic business significantly exceeded the revenue growth rate, reflecting the intense “price war” in the express delivery market. As of June, the unit price of SF Holding's express logistics business fell to 13.67 yuan, a year-on-year decline of 13.32%.

Since July, the “anti-involution” in the express delivery industry has become a focal point. The State Post Bureau has repeatedly emphasized strengthening regulation and industry self-discipline, and the market expects that industry prices are likely to be restored during the peak season.

Professional Comments

1. Performance rise and valuation adjustment: SF Holding's performance rise in the first half of the year is in line with the overall industry trend, but the significant drop in share price may reflect market concerns about its slowing growth rate. Investors need to pay attention to the company's future growth potential and changes in market share.

2. Gross Margin Pressure: The decline in gross margin reflects a fierce competitive market environment. The company needs to find a balance between maintaining market share and enhancing profitability.

3. Diversification Strategy: The strong rise of the same-city instant delivery business demonstrates the effectiveness of the company's diversification strategy. This could become an important growth point in the future.

4. International Business Development: Although the international business is still in a loss state, the loss has significantly narrowed, indicating that the company is seeking new opportunities in the reshaping of the global supply chain.

5. Industry Policy Impact: The regulators' attention to “anti-involution” may help improve the price environment in the industry. However, the specific implementation effects and sustainability still need to be observed.

6. Market Competition Landscape: The competitive situation in the express delivery industry remains fierce. As the industry leader, how SF Express can maintain its market position while improving profitability will be a key focus for investors.