SF Intra-city: Riding the Wave of Instant Delivery Demand

SF Intra-city (09699.HK), China's largest third-party on-demand delivery service provider, is projected to achieve strong annual revenue and profit growth amid surging demand for instant delivery. The company's net profit attributable to the owners of the Company is expected to increase by not less than 100% year-on-year, while revenue is expected to grow by not less than 25% year-on-year, with the second half of the year expected to grow by not less than 30% year-on-year.

The steady growth in SF Intra-city's net profit and revenue can be attributed to several factors:

1. Increasing consumption in catering and retail industries: The growth in consumption in the catering and retail industries in China has led to a higher demand for on-demand delivery services. This trend is expected to continue, as the development of the consumption and service sectors is likely to sustain the demand for such services in the long term.
2. Rapidly developing on-demand delivery industry: The on-demand delivery industry is growing rapidly, with SF Intra-city experiencing rapid growth in the order volume of intra-city on-demand delivery services and last-mile delivery services. This growth is expected to be sustainable, as the industry is still in its early stages and has significant room for expansion.
3. Technological innovation and digital intelligence capabilities: SF Intra-city's technological innovation and continuous enhancement of digital intelligence capabilities have driven an increase in market share and penetration rates. This trend is likely to continue, as the company's independent third-party positioning, branding, and products and services are increasingly recognized by customers.
4. Improvement in operational efficiency: The company has continuously improved the quality and efficiency of its operational base, further leveraging economies of scale and network effects. This has enhanced lean management capabilities and efficiency in resource utilization, leading to continuous improvements in gross profit margin and expense ratio.

SF Intra-city's commitment to large-scale expansion and covering various scenarios is expected to have a positive impact on its medium- to long-term revenue and profit potential. By covering various scenarios and providing excellent services, the company aims to establish a solid network and enhance its market position. This expansion strategy can lead to increased market share, higher customer satisfaction, and improved operational efficiency, ultimately driving revenue and profit growth.

However, investors should be aware of potential risks and challenges associated with SF Intra-city's strategic plans, such as market competition, regulatory risks, technological challenges, dependence on key partners, operational risks, and financial risks. By staying informed about these risks and monitoring the company's progress closely, investors can make informed investment decisions.

In conclusion, SF Intra-city's projected strong annual revenue and profit growth amid surging demand for instant delivery is supported by underlying trends in the market, such as increasing consumption, technological advancements, and the growing demand for on-demand delivery services. The company's commitment to large-scale expansion and covering various scenarios is expected to drive medium- to long-term revenue and profit growth, provided that it successfully navigates the potential risks and challenges associated with its strategic plans.