On the 27th of November, SF Express is poised for listing on the Hong Kong Stock Exchange, aiming to raise an approximate sum of $1 billion, potentially ranking as the second-largest IPO globally this year, following the United States. The impending listing of SF Express in Hong Kong represents a significant reinforcement of the company's standing in the international capital market, furnishing substantial financial backing for its forthcoming growth and advancement.

Company Overview

Established in 1993 in Shunde, Guangdong, SF Express has undergone a transformation over more than three decades to emerge as the largest integrated logistics service provider in Asia and the fourth-largest globally. The company's strategic evolution involved an early transition through a direct-operated model to secure a prominent position in the mid- to high-end time-sensitive sector. Furthermore, mid-term strategies have entailed diversification beyond the core time-sensitive operations.

The business framework of SF Express is marked by diversity, boasting a wide-ranging product portfolio. The company's principal offerings encompass time-sensitive express delivery, cost-effective express delivery, real-time local logistics, warehousing services, international express delivery, and a variety of courier services. Notably, the core freight services include refrigerated transportation for perishable goods, food items, and pharmaceuticals, complemented by value-added services like insured shipments, cash on delivery, packaging, and refrigeration services.

Financial Performance

From a financial standpoint, SF Express has witnessed consistent revenue growth in recent years, escalating from ¥71.09 billion in 2017 to ¥258.41 billion in 2023, yielding a compound annual growth rate of 24.0%. The company has sustained profitability since its IPO, culminating in a net profit attributable to shareholders of ¥8.23 billion in 2023, showcasing a 33.4% year-on-year increment and reaching a pinnacle in net profits. The international segment of SF Express has exhibited rapid progress, with a robust compound annual growth rate of 67.3% from 2020 to 2023 in the supply chain and international divisions, outpacing other segments significantly.

Subsequent to the acquisition of Kerry Logistics, SF Express's international operations have expanded, offering a spectrum of products encompassing international express delivery, international freight, agency, and supply chain services. Through the integration of multimodal transport resources and enhancements to overseas hubs, ground networks, and overseas warehouse layouts, SF Express has fortified its international freight capabilities, fostering connectivity between Asia and the global sphere.

In accordance with the prospectus, the capital raised from this listing will primarily be directed towards fortifying its international and cross-border logistics capacities, optimizing and enhancing China's logistics infrastructure and services, and pioneering advanced technologies and digital solutions. Moreover, the residual funds will be allocated for operational working capital and general corporate objectives. These strategic investments not only bolster SF Express's position in the fiercely competitive logistics arena but also underpin its global expansion strategy, further cementing its stature in the Asian and global logistics landscapes.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " 002352 " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.