Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Capital Markets

<ul>
<li>SF Holding's HKEX listing launched on Tuesday, November 19th; deal to be priced by 26th</li>
<li>SF hopes to raise about US$800 mn, less than originally anticipated in financial media</li>
<li>About one quarter of the offering will be taken up by ten cornerstone investors</li>
</ul>


SF Holding's HKEX listing launched on Tuesday, November 19th; deal to be priced by 26th
SF hopes to raise about US$800 mn, less than originally anticipated in financial media
About one quarter of the offering will be taken up by ten cornerstone investors


SF Holding Pre-IPO: Deal Goes Live in HK, Company Hopes to Raise ~US$800 Mn, Less Than Anticipated

<ul>
<li>We believe SF's core express margins are higher than most of its peers' margins</li>
<li>But on 2023 EV / EBITDA SF trades at multiples below most Chinese, US peers</li>
<li>One objective of SF listing in HK is to attract global investors, lift valuation</li>
</ul>


We believe SF's core express margins are higher than most of its peers' margins
But on 2023 EV / EBITDA SF trades at multiples below most Chinese, US peers
One objective of SF listing in HK is to attract global investors, lift valuation


SF Holding Pre-IPO: Core EBITDA Margins Compare Favorably to Most Express Peers in China and US

<ul>
<li>SF Holding's time-definite express service differentiates it from Chinese rivals</li>
<li>We believe SF dominates China's domestic inter-city air express segment</li>
<li>High exposure to air service mostly beneficial, with few risks, in our view</li>
</ul>


SF Holding's time-definite express service differentiates it from Chinese rivals
We believe SF dominates China's domestic inter-city air express segment
High exposure to air service mostly beneficial, with few risks, in our view


SF Holding Pre-IPO: Dominance in Domestic Time-Definite (Air) Express Is a Durable Differentiator

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>, the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.</li>
<li>In <strong><em><a href="https://www.smartkarma.com/insights/sf-holding-h-share-listing-updates-point-to-improving-fundamentals" target="_blank" data-smartkarma-citation="insights:166296" rel="noopener">SF Holding H Share Listing: Updates Point to Improving Fundamentals</a></em></strong>, we noted that SF is in good health, with a return to growth, rising margins, and strong cash generation.</li>
<li>In this note, we examine the likely discount SF Holding will offer its H Shares compared to the A Shares.</li>
</ul>



S.F. Holding (002352 CH), the largest Asian integrated logistics service provider, is premarketing an H Share listing to raise US$1.0-1.5 billion, according to press reports.
In SF Holding H Share Listing: Updates Point to Improving Fundamentals, we noted that SF is in good health, with a return to growth, rising margins, and strong cash generation.
In this note, we examine the likely discount SF Holding will offer its H Shares compared to the A Shares.


SF Holding H Share Listing: AH Discount Views

<ul>
<li>SF Holding's domestic parcel volumes have grown slower than overall market volumes recently; is this strategic, or simply a loss of share?</li>
<li>SF Holding is not closely aligned with any of the large online retail platforms in China; ultimately, is this independence an advantage or a disadvantage?</li>
<li>When will SF Holdings' varied international operations -- and there are a few of them -- begin to pull their own weight, in terms of profitability and growth?</li>
</ul>


SF Holding's domestic parcel volumes have grown slower than overall market volumes recently; is this strategic, or simply a loss of share?
SF Holding is not closely aligned with any of the large online retail platforms in China; ultimately, is this independence an advantage or a disadvantage?
When will SF Holdings' varied international operations -- and there are a few of them -- begin to pull their own weight, in terms of profitability and growth?


SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

United States

FedEx Corp. delivers packages and freight to multiple countries and territories through an integrated global network.  The Company provides worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery, supply chain management services, customs brokerage services, and trade facilitation and electronic commerce solutions.

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FedEx Corp (FDX US)

SF Holding Pre-IPO: Deal Goes Live in HK, Company Hopes to Raise ~US$800 Mn, Less Than Anticipated

SF Holding's long-anticipated secondary offering in Hong Kong has gone live. This quick update provides basic information about the offering....

Tracking Traffic

SF Holding Pre-IPO: Core EBITDA Margins Compare Favorably to Most Express Peers in China and US

In the run up to SF Holding's secondary listing in Hong Kong, we're "boomerang"-ing some recent Smartkarma insights covering the company and...

Tracking Traffic

SF Holding Pre-IPO: Dominance in Domestic Time-Definite (Air) Express Is a Durable Differentiator

In the run up to SF Holding's secondary listing in Hong Kong, we're "boomerang"-ing some recent Smartkarma insights covering the company and...

Tracking Traffic

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

Investors evaluating SF Holding's upcoming Hong Kong listing need to get comfortable with three important long-term issues currently facing the...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SF Holding Pre-IPO: Deal Goes Live in HK, Company Hopes to Raise ~US$800 Mn, Less Than Anticipated

SF Holding's long-anticipated secondary offering in Hong Kong has gone live. This quick update provides basic information about the offering....

Tracking Traffic

SF Holding Pre-IPO: Core EBITDA Margins Compare Favorably to Most Express Peers in China and US

In the run up to SF Holding's secondary listing in Hong Kong, we're "boomerang"-ing some recent Smartkarma insights covering the company and...

Tracking Traffic

SF Holding Pre-IPO: Dominance in Domestic Time-Definite (Air) Express Is a Durable Differentiator

In the run up to SF Holding's secondary listing in Hong Kong, we're "boomerang"-ing some recent Smartkarma insights covering the company and...

Tracking Traffic

SF Holding H Share Listing: AH Discount Views

SF Holding is premarketing an H Share listing to raise US$1.0-1.5 billion. In this note, we examine the likely discount SF Holding will offer its H...

Arun George

SF Holding Pre-IPO: Three Important Issues for Long-Term Investors to Consider

Investors evaluating SF Holding's upcoming Hong Kong listing need to get comfortable with three important long-term issues currently facing the...

Tracking Traffic