S.F. Holding Co. (002352) H2 2024 earnings summary

Executive summary

• Achieved record profits and strong revenue growth in 2024, driven by both domestic and international business expansion.

• Listed on the Hong Kong stock market, becoming the first A-class H-share in the express logistics sector.

• Focused on organizational vitality, incentive upgrades, and deepened industry penetration.

• Basic EPS rose 24.1% to RMB2.11; ROE improved by 2.0ppts to 11.2%.

• Dividend payout ratio (excluding one-off) at 40%, with RMB4.1bn in dividends and RMB4.8bn one-off special dividend.

Financial highlights

• Total revenue reached RMB 284.4 billion, up 10.1% year-on-year; express and logistics revenue was RMB 205.8 billion, up 7.7%.

• Supply chain and international revenue grew 17.5% to RMB 70.5 billion.

• EBITDA rose 11% to RMB 32.7 billion, with an 11.5% margin.

• Net profit attributable to owners hit RMB 10.2 billion, up 23.5%, with a net margin of 3.6%.

• Gross profit was RMB 39.6 billion, up 19.5%, with a margin of 13.9%.

• Operating cash flow reached RMB 32.2 billion, up 21%.

• Free cash flow surged 70% to RMB 22.3 billion.

• CapEx declined 26.6% to RMB 9.9 billion, 3.5% of revenue.

• Debt-to-asset ratio reduced to 26.8%.

Outlook and guidance

• Aims for high single-digit revenue growth in premium time-definite products, outpacing GDP.

• Economy segment targets above-industry volume growth and better economies of scale.

• CapEx expected to remain stable or slightly decrease as a percentage of revenue in 2025.

• Dividend payout ratio to be steadily increased, with interim dividends becoming the norm.

• Focus on technological innovation, lean operations, and network integration for cost reduction.

• Continued investment in technology, automation, and ESG initiatives.