After the share price fell to half in one year, S.F.Holding Co.Ltd(002352) ( S.F.Holding Co.Ltd(002352) ) threw out a repurchase plan of 2 billion yuan for employee stock ownership plan or equity incentive. On the 4th, the company disclosed that it had repurchased 215000 shares.
share price performance “double drop”
On February 18, 2021, S.F.Holding Co.Ltd(002352) share price fell all the way after hitting a record high of 124.06 yuan / share. As of March 2, 2022, the share price fell by more than 50%.
The company’s performance in 2021 also fell along with the share price. On January 29, S.F.Holding Co.Ltd(002352) released the performance forecast. It is estimated that the net profit in 2021 will be 4.2-4.4 billion yuan, a year-on-year decrease of 40% – 43%; Deduct non net profit of RMB 1.78 billion to RMB 1.93 billion, a year-on-year decrease of 69% – 71%.
The company said that the decline in performance was mainly due to the company’s increased investment in network resources such as site, equipment and transportation capacity in order to expand market share and alleviate capacity bottlenecks; At the beginning of the year, the epidemic responded to the call for the Chinese New Year in situ, resulting in an increase in labor costs; The rapid growth of economic express products has put some pressure on the overall profit margin; In 2021, the national anti epidemic related tax reduction and exemption preferential policies will end one after another, which is caused by four factors.
In the fourth quarter of 2021, after completing the acquisition of 51% equity of Kerry Logistics, realizing financial consolidation, and optimizing the operation measures and management, the company’s performance increased greatly. It is expected to realize a net profit of 2.4 billion yuan to 2.6 billion yuan, with a year-on-year increase of 39% to 50%; Deduct non net profit of RMB 1.45 billion to RMB 1.6 billion, with a year-on-year increase of 41% to 56% and a month on month increase of 79% to 98%.
However, the company’s share price still failed to stop the downward trend. Since 2022, the company’s share price has fallen by nearly 15% in three months.
throw away 2 billion yuan repurchase plan
On March 2, S.F.Holding Co.Ltd(002352) announced that based on the confidence in the future development prospects and the high recognition of the company’s value, improve the company’s long-term incentive mechanism, mobilize the enthusiasm of the company’s core backbone and excellent employees, and plan to buy back some social public shares through the secondary market for ESOP or equity incentive. The total repurchase funds shall be no less than 1 billion yuan and no more than 2 billion yuan.
On March 3, the day after the disclosure of the repurchase plan, S.F.Holding Co.Ltd(002352) repurchased a total of 215000 shares at a total price of 125833 million yuan. However, the market did not give a big response to this repurchase. On March 3 and 4, the company’s share price closed at 58.52 yuan / share and 58.74 yuan / share respectively, up 0.76% and 0.38%. Some investors said: “what’s the use of buying back without writing off?”
In fact, except for S.F.Holding Co.Ltd(002352) , the profits of the express industry, including “four links and one Da” and deppon, were squeezed in the fierce competition in 2021. The performance forecast shows that Sto Express Co.Ltd(002468) has suffered its first loss since its listing, and the net profit is expected to decline by 271511% Deppon Logistics Co.Ltd(603056) net profit pre reduced by 87% Yto Express Group Co.Ltd(600233) performance is expected to be reduced by 24.52% Yunda Holding Co.Ltd(002120) although the performance forecast has not been disclosed, the net profit in the first three quarters of 2021 decreased by 23.41%.
In addition to seizing the market through price means, the above express industry giants have also improved their competitiveness through business integration such as mergers and acquisitions Sto Express Co.Ltd(002468) after successively acquiring transit centers in Xinjiang, Jinan, Chongqing, Xi’an and other core cities, the self operating rate has increased to 95.59% by August 2021; Jitu announced in 2021 that it would acquire Baishi with 6.8 billion yuan Deppon Logistics Co.Ltd(603056) announced at the beginning of this month that the controlling shareholders are planning major matters related to the change of ownership structure, and it is rumored that they will cooperate with JD.
In the face of the “encirclement and suppression” of many express giants, SF began to test hydropower commercial parts in 2021, challenging the low-cost market, but dragging down its performance. Can the company achieve performance growth in 2022? Can we find a way to boost performance in the encirclement and suppression of industry giants? Why not cancel the repurchased shares to boost the share price? In this regard, the reporter of Dazhong Securities News called S.F.Holding Co.Ltd(002352) , but the company’s phone was not answered.
