We raised wide-moat SF Holding’s, or SF’s, fair value estimate by 6% to CNY 54.30 per share after the company reported stronger-than-expected earnings and revised up 2024 earnings guidance. The shares remain undervalued, underpinned by our 11% net income CAGR forecast in the coming decade.
SF would see better-than-expected efficiency improvement and revenue growth following the deployment of Asia’s first cargo hub airport, Ezhou Huahu airport.
A sharp increase in compensation and labor shortage against the backdrop of significantly more stringent regulations protecting delivery personnel and falling population dividend in China could materially increase costs and disrupt SF’s operations.
|
Metric
|
002352
|
FDX
|
ZTO
|
|---|---|---|---|
Price/Earnings (Normalized) | 27.02 | 15.87 | 15.12 |
Price/Book Value | 2.32 | 2.41 | 2.34 |
Price/Sales | 0.77 | 0.76 | 3.60 |
Price/Cash Flow | 7.20 | 5.76 | 11.76 |
|
Metric
|
002352
|
FDX
|
ZTO
|
|---|---|---|---|
Quick Ratio | 1.08 | 1.15 | 1.01 |
Current Ratio | 1.21 | 1.28 | 1.26 |
Interest Coverage | 8.54 | 15.86 | 29.26 |
|
Metric
|
002352
|
FDX
|
ZTO
|
|---|---|---|---|
Return on Assets (Normalized) | 3.45% | 4.84% | 10.87% |
Return on Equity (Normalized) | 8.38% | 15.67% | 16.34% |
Return on Invested Capital (Normalized) | 4.81% | 6.92% | 12.02% |
|
1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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