BOCOM International released a research report raising the target price for SF INTRA-CITY (09699) to HK$15.4 while maintaining a "Buy" rating. The firm believes SF INTRA-CITY remains one of the beneficiaries in the delivery subsidy competition, with substantial business opportunities ahead as subsidies return to rational levels. The bank anticipates continued deepening business synergies with SF Group in the long term, while scaled deployment of unmanned delivery vehicles will continue to reduce costs.
Based on significantly better-than-expected revenue growth in the first half of the year and accelerating quarter-over-quarter growth in instant delivery business demand in the third quarter, BOCOM International has revised SF INTRA-CITY's revenue forecasts for 2025-2027 upward by 14%/12%/12% to RMB 22.0-30.4 billion, representing year-over-year growth of 40%/20%/15%. Simultaneously, driven by the company's improving order density, excellent courier management capabilities, and AI-enhanced continuous optimization of operating expense ratios, the firm has upgraded its profit forecasts for 2025-2027 by 26%/23%/27% to RMB 340 million-760 million, with Non-IFRS net profit margins of 1.5%/2%/2.6% respectively.
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