Commemorative
Buffett Apprentice[New Stock Analysis] SF Holding Subscription Strategy
SF Holding (06936.HK), founded in 1993 and headquartered in Shenzhen, is a global leader in the logistics industry. SF Holding's business covers various logistics sectors including time-definite express, economy express, freight, cold chain and pharmaceutical services, same-city instant delivery, international express, international freight forwarding and agency, and supply chain. In terms of 2023 revenue, SF Holding is the largest comprehensive logistics service provider in China and Asia, and the fourth largest in the world. Its market share in China's time-definite express sector is as high as 63.9%, demonstrating a strong market-leading position.
1. IPO Overview
SF Holding officially launched its IPO on November 19, 2024, planning to issue 170 million shares globally, including 153.85 million shares for international offering and 16.15 million shares for Hong Kong public offering. The indicative price range for each share is between HKD 32.30 and HKD 36.30, with an expected maximum fundraising of HKD 6.171 billion. SF Holding's IPO will be the largest in the Hong Kong stock market this year, attracting significant market attention.
2. Use of Proceeds
SF Holding plans to use the net proceeds from the global offering for the following purposes:
• Approximately 45% to strengthen international and cross-border logistics capabilities
• Approximately 35% to enhance and optimize logistics networks and services in China
• Approximately 10% for R&D of advanced technologies and digital solutions, upgrading supply chain and logistics services, and implementing ESG-related initiatives
• Approximately 10% for working capital and general corporate purposes
3. Market Environment and Performance
In recent years, SF Holding's operating performance has been affected by the global macroeconomic and trade slowdown, with overall international logistics demand weakening. In 2023, SF Holding's revenue declined by 3.4% to RMB 258.409 billion, but net profit attributable to the parent company was RMB 8.234 billion, with a growth rate of 32.2%. In the first half of 2024, SF Holding's revenue increased by 8.1% year-on-year to RMB 134.41 billion, and net profit attributable to the parent company grew by 15.1% year-on-year to RMB 4.81 billion. Despite sluggish revenue growth, net profit attributable to the parent company showed strong performance.
4. Data Analysis
• Market Share: SF Holding's market share in China's time-definite express sector is as high as 63.9%, far exceeding other competitors.
• Revenue Growth: SF Holding's revenue growth trend in recent years shows a decline in 2023, with some recovery in growth in the first half of 2024.
• Net Profit Growth: SF Holding's net profit attributable to the parent company has maintained steady growth, demonstrating strong profitability.
5. IPO Subscription Strategy
Based on the above analysis, the following recommendations are proposed for SF Holding's IPO subscription strategy:
1. Focus on the company's fundamentals: As a global leader in the logistics industry, SF Holding has a strong market position and profitability. Despite the impact of the global economic environment, the company has maintained stable growth in net profit attributable to the parent company, demonstrating strong risk resilience.
2. Evaluate the use of proceeds: SF Holding's fundraising will mainly be used to strengthen international and cross-border logistics capabilities, enhance domestic logistics networks and services, and develop advanced technologies and digital solutions, which will help further improve the company's market competitiveness.
3. Consider market sentiment: As the largest IPO in the Hong Kong stock market this year, SF Holding has attracted significant market attention. Investors should monitor changes in market sentiment and market reactions during the IPO period.
4. Subscribe cautiously: Given that SF Holding's valuation and issue price have not yet been determined, investors should carefully assess their risk tolerance and investment objectives when subscribing. It is recommended that investors allocate subscription funds reasonably based on their individual circumstances.
In summary, as a global leader in the logistics industry, SF Holding has a strong market position and profitability. When subscribing to the IPO, investors should focus on the company's fundamentals, use of proceeds, and market sentiment, and carefully assess their risk tolerance and investment objectives.$SF HOLDING(06936.HK)
Disclaimer: The views expressed herein are solely personal opinions and do not constitute investment advice. Investors should evaluate risks independently and seek professional advice when making investment decisions. The market carries risks, and investments should be made with caution.
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