S.F. Holding (06936.HK) sponsor Goldman Sachs released a Research Report stating that S.F. Holding, as Asia's largest comprehensive logistics service provider, is well-positioned to seize the growing opportunities in the Asian express and comprehensive logistics market, and its valuation is not high.

Goldman Sachs indicated that S.F. Holding's industry-leading products are supported by strong infrastructure, and the impact of reverse e-commerce package competition is manageable. The firm also mentioned that S.F. Holding's cost optimization benefits will continue to be realized, gradually increasing the group's adjusted net profit from 8 billion yuan in 2023 to a forecast of 14 billion yuan in 2026, while driving the total dividend forecast to reach 12 billion yuan from 2024 to 2026 and additional buybacks.

Goldman Sachs also noted that S.F. Holding may expand its Total Addressable Market (TAM) from China to Southeast Asia, or even globally. The firm initiated coverage of S.F. Holding's H shares with a target price of HKD 51, assigning a Buy rating.

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