SF Intra-city: A High-Growth Play in China’s On-Demand Delivery Sector

The on-demand delivery sector in China has emerged as a cornerstone of the digital economy, driven by urbanization, e-commerce, and shifting consumer preferences. At the forefront of this transformation is SF Intra-city (09699.HK), a third-party logistics platform that has demonstrated exceptional scalability and profitability. For investors, the company’s ability to balance high-margin growth with technological reinvestment makes it a compelling case study in sustainable infrastructure development.

Financial Performance: Profitability on a Surge

SF Intra-city’s financial results in 2024 and 2025 underscore its dominance. In the first half of 2024, revenue rose 19.6% year-on-year to RMB6,878.5 million, while net profit more than doubled to RMB62.2 million, setting a historical record [1]. For the full year, revenue grew 27.1% to RMB15,746.1 million, with net profit surging to RMB132.5 million [1]. By H1 2025, the company’s revenue had climbed 48.8% year-on-year to RMB10,236 million, and net profit jumped 120.4% to RMB137.05 million [2]. These figures reflect not just volume growth—order volumes increased 30% in 2024—but also margin improvements. Gross profit margin hit 6.9% in H1 2024, up 0.2 percentage points from the prior year [1], while operating cash flow surged 189% YoY to RMB99.2 million [1].

Scalability: Expanding Beyond Tier-1 Cities

SF Intra-city’s network scalability is a critical differentiator. By 2024, it had expanded its on-demand delivery network to 1,200 counties, achieving a 68% coverage rate and driving a 51% year-on-year revenue increase in county-level areas [1]. This expansion taps into China’s “new consumption” infrastructure, where lower-tier cities account for 40% of the company’s active consumers (23.4 million) and 650,000 active merchants [3]. The company’s focus on non-food delivery scenarios—such as pharmaceuticals, clothing, and cultural tourism services—has also paid off, with revenue from these sectors rising 32.4% in 2024 [1].

The broader market supports this strategy. The global intra-city logistics market is projected to grow at 8.5% CAGR, reaching USD300 billion by 2033 [3]. SF Intra-city’s partnerships with platforms like Douyin and WeChat enable seamless integration into China’s fragmented e-commerce ecosystem, enhancing its ability to capture incremental demand [4].

Technological Reinforcement and Long-Term Sustainability

SF Intra-city’s profitability is underpinned by its tech-driven logistics model. AI-powered route optimization, real-time tracking, and electric delivery vehicles have reduced operational costs while improving delivery speeds [3]. The company’s lean management approach has kept operating margins stable at 0.9% in H1 2024 [1], despite rising labor and fuel costs. Analysts highlight its reinvestment in digital infrastructure as a key strength, with the parent company, S.F. Holdings, allocating capital to expand into Southeast Asia’s high-growth e-commerce markets [3].

However, challenges remain. High operational costs and regulatory scrutiny in China’s logistics sector could pressure margins. Yet, SF Intra-city’s focus on automation and its strategic alignment with government-backed infrastructure projects—such as the Southern SF Logistics REIT’s HK$3.29 billion raise in 2024 [3]—position it to outpace competitors in a capital-intensive industry.

Analyst Confidence and Investment Thesis

Analysts have assigned a “Buy” rating to SF Intra-city, with a price target of HK$20.00 [2]. The company’s earnings per share have grown 108% year-on-year, and insiders hold a CN¥147 million stake, signaling alignment with shareholders [2]. While the operating margin dipped to 0.55% as of August 2025 [1], this reflects strategic reinvestment in lower-tier cities and new delivery categories, which are expected to compound growth in the long term.

For investors, SF Intra-city represents a high-conviction play in a sector poised for structural growth. Its ability to scale profitably, leverage technology, and adapt to regulatory and market dynamics makes it a standout in China’s on-demand delivery landscape.

Source:
[1] SF Intra-city (09699.HK) Achieved High-Quality Revenue Growth of Around 20% in the First Half of 2024, Net Profit Doubled [https://www.prnewswire.com/apac/news-releases/sf-intra-city-09699hk-achieved-high-quality-revenue-growth-of-around-20-in-the-first-half-of-2024-net-profit-doubled-302233862.html]
[2] Hangzhou SF Intra-city Reports Strong H1 2025 Financial Performance [https://www.tipranks.com/news/company-announcements/hangzhou-sf-intra-city-reports-strong-h1-2025-financial-performance]
[3] Intra-city Logistics Market Size And Forecast [https://www.verifiedmarketreports.com/product/intra-city-logistics-market/]
[4] SF Intra-city (9699.HK) Delivery Orders of Comprehensive ... [https://finance.yahoo.com/news/sf-intra-city-9699-hk-100200020.html]