SF Holdings 4000-word in-depth research report

$SF HOLDING(06936.HK)$ZTO Express(ZTO.US) $YTO(600233.SH) Recently researched SF Holding, whose core logic lies in the "efficiency + trust" barrier built by its direct operation model, transitioning from express delivery to integrated logistics, with finances entering the harvest period.
🎯 Core logic: Mainly focuses on time-sensitive express and integrated logistics in mainland China, with domestic revenue accounting for over 90%; time-sensitive express CR3 (SF, JD Logistics, EMS) exceeds 80%, forming an oligopoly. Direct operation network ensures 24-48 hour delivery certainty, with single-ticket revenue 2-3 times that of Tongda peers; transitioning to an integrated logistics solution provider, with supply chain revenue growing over 30% YoY in 2023.
📈 Financial highlights: 2024 ROE 11% (excellent in logistics industry where >10% is considered good), gross margin 13.9% (stable at 12%-16% over the past five years), net margin 3.58% (up from 2.31% in 2022); free cash flow 22.8B in 2024 (significantly positive for two consecutive years), operating cash flow 32.2B, net profit cash ratio over 3.1 (profits are real and cash-convertible); double-digit net profit growth in 2023-2024 (2024: +23.6%); debt-to-asset ratio 52% (moderate), current ratio 1.23 (no short-term debt concerns).
🔍 Growth drivers: Technology investment (R&D over 5B in 2023) reduces costs and improves efficiency; acquisition of Kerry Logistics integrates international network; B2B businesses like cold chain and pharmaceutical logistics enhance revenue stability, reducing reliance on e-commerce cycles.