(Yicai Global) Aug. 23 -- SF Holding’s net profit dived 79.8 percent in the first half from the same period last year due to wafer-thin profit margins and surging expenses. This was in line with projections made by the Chinese express delivery giant at the end of the first quarter and its stock price held steady.

SF Holding logged net profit of CNY760 million (USD116.9 million) in the six months ended June 30, the Shenzhen-based company said in its latest earnings report released yesterday. Revenue was up 24.2 percent to CNY88.3 billion (USD13.6 billion).

The company’s economy express business is underpriced due to stiff competition in the sector, which has put a lot of pressure on the profit margin, SF Holding said. It has also invested heavily in new business spaces and automated equipment to speed up market expansion.

The company was able to turn a profit in the second quarter, after racking up a huge loss of CNY989 million (USD152 million) in the first quarter.

SF Holding’s share price [SHE:002352] was trading down 1.81 percent at 2:30 p.m. today at CNY57.01 (USD8.78). The stock has more than halved in value since February.

Its other new business sectors logged a 26.7 percent year-on-year jump in revenue for the period, accounting for almost a third of total earnings.

Editor: Kim Taylor