On January 28, S.F.Holding Co.Ltd(002352) released the performance forecast for 2021. According to the data, the net profit of the company in 2021 is expected to be 4.2-4.4 billion yuan, down 40% – 43% from 7.326 billion yuan last year. The net profit after deducting non recurring profits and losses is expected to be between 1.78 billion and 1.93 billion yuan, a year-on-year decrease of 69% – 71%.
However, the decline of S.F.Holding Co.Ltd(002352) was reversed to some extent in the fourth quarter. The announcement shows that the net profit of S.F.Holding Co.Ltd(002352) in the fourth quarter was between 2.4 billion yuan and 2.6 billion yuan, an increase of 39% – 50% over the same period last year. The net profit after deduction is expected to be 1.45-1.6 billion yuan, 41% – 56% year-on-year. According to this calculation, S.F.Holding Co.Ltd(002352) the profit in the fourth quarter accounted for more than half of the annual profit.
S.F.Holding Co.Ltd(002352) has completely different performance in the whole year of 2021 and the fourth quarter of 2021, which is closely related to the huge loss of S.F.Holding Co.Ltd(002352) in the first quarter of 2021.
In the first quarter of 2021, S.F.Holding Co.Ltd(002352) suffered a huge loss of 989 million yuan, and S.F.Holding Co.Ltd(002352) which has always been known as “white horse stock” also fell by the limit. The stock market remained depressed for several months. Wang Wei, chairman and general manager of S.F.Holding Co.Ltd(002352) , apologized to investors and said, “I don’t think this problem will happen again in the future.” After the first quarter, S.F.Holding Co.Ltd(002352) the businesses in the second and third quarters began to realize profits, which were 1.746 billion yuan and 1.038 billion yuan respectively.
S.F.Holding Co.Ltd(002352) also pointed out in its performance forecast that the decline in the performance of S.F.Holding Co.Ltd(002352) in the whole year is mainly due to the increased investment in network resources such as venues, equipment and transportation capacity, the rise of labor costs caused by “not closing in the Spring Festival”, the pressure on profit margins caused by being involved in the price war, and the fact that the same national anti epidemic related tax relief and exemption as that in 2020 will no longer be obtained in 2021.
It is worth noting that the first two factors have a particularly obvious impact on the performance of the first quarter. This year, S.F.Holding Co.Ltd(002352) still continued the policy of “no closing during the Spring Festival”, and announced that an exclusive incentive of 300 million yuan was set for employees in Hong Kong during the Spring Festival. Wang Wei also continued to pay out of his own pocket and prepared 25 million warm-hearted red envelopes.
After the first quarter of last year, S.F.Holding Co.Ltd(002352) has repeatedly stated that with the further promotion of the integration of four networks, the economies of scale will further appear. In the performance forecast for 2021, S.F.Holding Co.Ltd(002352) pointed out that the company focused more on the core strategy. At the same time, on the revenue side, the single ticket income of economic express products increased year-on-year. On the cost side, the four networks of express, express, warehouse network and Fengwang continued to promote, and the overall benefit was improved.
In addition to the changes of its own business line, S.F.Holding Co.Ltd(002352) acquired Kerry Logistics has also contributed a lot of profits to it. At the end of September this year, S.F.Holding Co.Ltd(002352) completed the acquisition of Kerry Logistics, which will officially become the International Department of S.F.Holding Co.Ltd(002352) .
Affected by this, the revenue of S.F.Holding Co.Ltd(002352) in October last year increased by 73.19% year-on-year to 22.007 billion yuan, which is also the first time that the revenue of S.F.Holding Co.Ltd(002352) in a single month exceeded 20 billion yuan. With the support of Kerry Logistics, S.F.Holding Co.Ltd(002352) supply chain and international business increased by 779.1% year-on-year. A previous analysis report of China Galaxy Securities Co.Ltd(601881) securities also pointed out that S.F.Holding Co.Ltd(002352) is expected to benefit about 500 million yuan a year after being included in the performance of Kerry Logistics.
Therefore, some analysts pointed out that the fourth quarter may be the business inflection point of S.F.Holding Co.Ltd(002352) . In fact, in addition to Kerry Logistics and business restoration, improvement of operation efficiency, easing of price war and other factors, S.F.Holding Co.Ltd(002352) is also actively laying out its long-term strategy, including the Shunfeng Ezhou airport project, which is being promoted and will be an important focus for S.F.Holding Co.Ltd(002352) business development in the future. The financing of 20 billion yuan also provides a stronger capital support for S.F.Holding Co.Ltd(002352) .
