Significant growth in revenue and net profit, SF Express demonstrates business resilience

time:2022-09-29 09:35:48 source:clevelanddrifters.com author:Aerospace stock
Significant growth in revenue and net profit, SF Express demonstrates business resilience

After the "price war" died down, the inflection point of the express delivery industry came quietly. SF Express, which has been operating steadily for many years, has shown full resilience in the face of industry changes. On the evening of August 30, SF Holding (002352.SZ) released its 2022 semi-annual report. According to the announcement, in the first half of 2022, SF Holding achieved operating income of 130.064 billion yuan, a year-on-year increase of 47.22%; net profit attributable to shareholders of listed companies was 2.512 billion yuan, a year-on-year increase of 230.61%; net profit after deduction of non-deductibles was 2.148 billion yuan, a year-on-year increase 550.20%; realized earnings per share of 0.51 yuan, a year-on-year increase of 200%. In the first half of 2022, the express delivery industry was significantly affected by the epidemic. From March to May, some cities in China were blocked due to the closure and control of the epidemic, and the sharp rise in fuel prices led to a sharp increase in cost pressure. Under the pressure of the industry, the head effect of SF Express gradually emerged. On the one hand, SF Express actively adjusts its product structure and expands the use of time-sensitive express delivery; on the other hand, SF Express’s international business has risen, and its revenue has increased significantly year-on-year, with sufficient resilience to confront uncertainty. Significant increase in cash flow and improved anti-risk capabilities In the first half of 2022, the repeated epidemics in first-tier cities such as Shanghai and Beijing brought certain difficulties to the express logistics industry. From an industry perspective, the national express delivery business volume was under pressure in March and April. Among them, the national express delivery service business volume completed 7.48 billion pieces in April, a year-on-year decrease of 11.9%, and the month-on-month growth rate (-3.1%) The decline expanded. In the first half of this year, SF Express adjusted its product structure and lean management in a timely manner. Against the background of overall business pressure from March to April, SF Express made quick repairs. In June, the growth rate of express delivery revenue increased and gradually recovered. With the gradual lifting of the lockdown, SF Express fully assisted the social resumption of work and production and the 618 e-commerce promotion. The business recovered rapidly. In June, revenue achieved a double-digit growth of 11.2%, which was higher than the overall level of the express delivery industry. The degree of influence affects the growth rate of SF Express's business volume, but it promotes the overall average ticket revenue of the express logistics segment to increase by 3.3%, and the quality of revenue continues to be optimized. In addition, SF Express continued to deepen the end-to-end operation model reform on the cost side, and promoted lean resource planning and cost control, which led to a recovery in the profitability of various segments and continued reduction of losses in new businesses. Among them, in terms of multi-network integration, SF Express has further strengthened the integration of network points, transit yards, warehousing, trunk and branch line transportation resources, and flexible resource coordination between business segments during the off-peak season, so as to ensure the quality of products and services, while improving the efficiency of resource use and investment. At the same time, the use of science and technology to further enhance the in-depth digital operation capability under the background of the reform of the operation model, realize the pre-data model decision-making of resource input in each link, the intelligent control and scheduling during the event, and the post-event review benefit analysis, etc., to help improve Refinement of cost control level. According to the financial report, as of the end of the reporting period, SF Express had total assets of 212.47 billion yuan, net assets attributable to shareholders of listed companies of 81.72 billion yuan, and an asset-liability ratio of about 55.6%. At the end of the reporting period, SF Express's daily operating cash flow and financial structure remained stable as a whole. In the first half of this year, the net cash flow from operating activities improved significantly, from 4.33 billion yuan in the same period last year to 16.71 billion yuan, a year-on-year increase of 285.8%. Expansion of time-sensitive express categories to expand profitability SF’s steady growth in cash flow is closely related to its profitability. During the reporting period, the main revenue of SF Express still came from express delivery products. The financial report shows that in the first half of 2022, SF Express’s express delivery business achieved a tax-free operating income of 49.26 billion yuan, a year-on-year increase of 5.1%; the economic express business achieved a tax-free operating income of 11.81 billion yuan, a year-on-year decrease of 7.3%; Tax operating income was 13.15 billion yuan, a year-on-year increase of 1.6%; cold transportation and pharmaceutical business achieved tax-exclusive operating income of 4.07 billion yuan, a year-on-year increase of 9.3%; intra-city express delivery business achieved tax-exclusive operating income of 2.87 billion yuan, a year-on-year increase of 28.2%, etc. . Judging from the performance of SF Express in the first half of the year, it has basically changed the "restraint" of business items, and has turned to high-consumption products, industrial manufacturing, and C-end multi-frequency consumption. The "Exclusive Express" launched by SF Express has achieved the fastest inter-provincial delivery in 7 hours nationwide, and has reached 73 cities so far, satisfying customers' rapid response to bulk and large-scale air transportation under the mid-to-high-end industrial chain and JIT production and circulation mode. need. At the same time, SF Express has already appeared in the return and exchange application scenarios of Taobao and other e-commerce platforms. According to SF Express, its return delivery business has grown rapidly, and the stickiness of scattered orders has increased. Under the epidemic, the penetration rate of high-end consumption online has increased, which has also brought new drivers to SF Express. While low-margin products are gradually withdrawing from the market, SF Express still maintains an express business volume of around 5.13 billion pieces, which is the same as the same period last year. Some brokerage analysts believe that high-value brands, high-value categories, and high-end platforms will drive consumer demand for timeliness. SF Express’s absolute leading position in the field of timeliness products has the foundation to promote revenue management and promote price upgrades in the future. The international supply chain has gradually grown into the "second growth curve". In the financial report, in addition to the stable growth of the express delivery business of SF Express, the performance of the supply chain and international business exceeded market expectations. In the first half of 2022, after the merger of Kerry Logistics, the scale of SF's supply chain and international business segment increased from 8.57 billion yuan to 46.53 billion yuan, an increase of 442.7%. At present, SF Express's international express business covers 84 countries and regions around the world, and its cross-border e-commerce services cover more than 200 countries and regions around the world. SF Express's international express business in Southeast Asia has been able to achieve 24-hour customs clearance services at 7 Southeast Asian ports. With the blessing of 72 self-owned all-cargo aircraft, 5-7 flights per week can be flown between Singapore, Malaysia, Thailand and Vietnam, realizing core cities across the country. To major cities in Southeast Asia to achieve D+2 Dingri delivery. The operation of Ezhou Huahu Airport brings more possibilities to SF International and its supply chain business. According to the financial report, the first phase of airport cargo will open two routes from Ezhou to Shenzhen and Shanghai, and the international routes to Osaka and Frankfurt will be opened within the year. In terms of domestic business, Ezhou Huahu Airport, as a core air cargo hub, can cover 90% of the country's economic population with a 1.5-2 hour flight. Combined with SF Express's all-cargo routes covering the whole country and radiating the world, it can further consolidate the competition of express delivery within a short period of time. Advantage. In terms of international business, the synergy between SF Express and Kerry Logistics is more reflected. Huachuang Securities analysts believe that the advantages of Kerry Logistics in terms of cargo volume and the air transportation capacity of SF Express, Ezhou Airport as an international cargo hub will help SF Express Expand the layout of the international aviation network; at the same time, sufficient round-trip cargo volume will effectively increase the loading rate of international routes, and enhance the efficiency and competitiveness of the aviation network. "We believe that SF Express may be the first to focus on establishing an absolute leading position in the China-Southeast Asia market. With the help of Kerry Logistics' ground layout in Southeast Asia, as well as SF Express's fleet of all-cargo aircraft and the ability to dispatch shipments in mainland China, it will create a one-stop terminal. end-to-end capability.”

(Responsible editor:Technology stocks)

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