Zhītōng Cáijīng APP learned that BOCOM International released a research report stating that it is expected that SF Express (09699) will have a revenue growth rate of 22% / 19% for the whole year of 2021 and 2022 respectively, and the profit margin will also continue to improve, expected to be 0.9% / 1.9%. The bank raised the target price of SF Express to HKD 13.5 with a P/S of 0.6 times and a P/E of 33 times, and maintained a 'buy' rating.

The bank stated that BOCOM International expects SF Express's revenue to increase by 22% YoY to RMB 7.1 billion in the first half of this year, while net income doubled to RMB 67 million. Benefiting from the increase in order density and the fine management of rider efficiency, the bank expects the group's gross margin to increase by 0.7 percentage points to 7.1% for the full year of 2021, driven by the decrease in average cost and the improvement in efficiency.