J.P. Morgan believes that S.F. Holding still has the opportunity to increase shareholder returns, capital expenditure will peak, and there may be an increase in dividends and Share Buyback.
According to the Zhito Finance APP, JPMorgan has released a research report stating that S.F. Holding (06936) plays an advantage in the vibrant logistics market, giving its Listed in Hong Kong shares a "Shareholding" rating. Based on discounted cash flow valuation, the Target Price is set at 46 HKD, which implies an EV/EBITDA of 6.5 times for 2025. In comparison, some logistics companies in China and the three major Global logistics companies have valuation trading ranges from 6.5 times to 9 times.
JPMorgan expects that from 2025 to 2026, S.F. Holding's revenue will see a compound annual growth rate of approximately 10%, with profits growing at a compound annual growth rate of approximately 20%. The supply chain management and international divisions will achieve significant growth through the global expansion of Chinese enterprises. In 2025, the PE of S.F. Holding's Listed in Hong Kong shares will be 14 times, with an EV/EBITDA of 4.3 times, and a dividend yield of 2.9% for 2025. The bank believes there are still opportunities for the stock to increase shareholder returns, capital expenditures will peak, and there may be potential for dividend increases and Share Buyback.
