Jinwu Financial News | Shen Wan Hongyuan (Hong Kong) Research Report shows that SF Tongcheng (09699) is a leader in third-party instant delivery, and profitability continues to improve. SF Express Tongcheng adopts a full-scenario business model, covering all delivery scenarios for all kinds of products and services. The scope of services includes food and beverage takeout, retail in the same city, near-field e-commerce and near-field services. The service targets include merchants, consumers, and last-mile businesses. With the strengthening of the company's economy of scale and network effects, the cost ratio gradually declined, and the company's net profit turned loss into profit in 2023, achieving the first profit since the company went public.
The bank expects the company's revenue from 2024 to 2026 to reach 149.44, 17.573, and 20.304 billion yuan. Based on revenue forecasts, the current market capitalization corresponds to PS 0.57x, 0.48x, and 0.42x, respectively. From an industry perspective, the following three similar listed companies were selected as comparable companies, including Meituan, Dada, and Dingdong Grocery Shopping. From the perspective of the main business of the above three companies, they are all instant delivery industry companies, similar to SF Express in the same city. The average PS of the three comparable companies in 2024E-2026E was 0.66X/0.57X/0.51X, respectively. Based on the average valuation level of the instant delivery industry at home and abroad, the bank believes that the company's reasonable PS valuation ratio in 2024 is 0.66X, and there is still 17% room to rise from the current market value. Covered for the first time, it currently has an “gain” rating.