The report from HSBC Research indicates that the revenue growth of SF Express (09699.HK) may accelerate again due to recent stimulus measures, but the earnings forecast has been lowered due to recent cost pressures. The bank states that overseas and service expansion should further consolidate its long-term growth, projecting a 23% year-on-year revenue increase for the entire year, with an attractive current valuation.

The bank believes that the company's revenue growth in the second half of the year will reach 26%, compared to a 20% increase in the first half, primarily driven by the consumer recovery that boosts order volumes from major users, further penetration into SF (06936.HK) last-mile orders, and improved market share due to its strong brand and competitiveness. However, due to rising administrative costs and tax pressures, the net profit forecasts for the company for this year through 2026 have been reduced by 26%, 8%, and 2%, and the target price has been lowered from 15 yuan to 14.3 yuan, maintaining a "buy" rating. (vc/u)

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