(Yicai Global) March 24 -- SF Holding said it does not expect the coronavirus pandemic to majorly impact its business this year after the Chinese express delivery giant's earnings rose more than a fifth in 2019.
SF made stable progress in January, with supply chain revenue surging over five-fold and business volume jumping 40.5 percent from a year earlier, the Shenzhen-based company said yesterday.
Other large companies such as e-commerce leader Alibaba Group Holding and internet search provider Baidu have warned of weaker earnings because of the disruption the virus wreaked in the world's second-largest economy. In the early stages of the Covid-19 outbreak, SF's cargo airline could still fly amid road and railroad blocks in central China. SF Airlines has the country's biggest cargo fleet.
The pandemic is expected to have a limited short-term impact on SF's operations this year, the firm said.
The company's stock price [SHE:002352] rose 0.7 percent today to close at CNY44.86 (USD6.34). The benchmark Shenzhen Component Index gained 2.4 percent.
For the year ended Dec. 31, net profit rose 27 percent to CNY5.8 billion (USD819.6 million) from a year earlier as new business expanded rapidly and efficiency improved, the company said in its earnings report released yesterday. Revenue rose 23 percent to CNY112.2 billion, making it the first mainland listed courier to post over CNY100 billion in income.
Over last year, SF acquired foreign companies' supply chain operators in China, including that of DHL and McDonalds, which resulted in a massive revenue boost. The second half of the year was particularly strong, driven by the fields of express, cold chain, and international deliveries.
From Jan. 24 to March 11, SF Airlines made 190 flights while delivering more than 4,600 tons of epidemic prevention equipment in China. Its International arm brought 1,200 tons of such gear to China from Japan, Singapore, South Korea, Malaysia, the US, and Australia. By the end of last year, the company operated more than 70 air cargo routes.
Editor: Emmi Laine