JP Morgan: "Overweight" rating on S.F. Holding (06936) with a target price of HK$46.

JP Morgan released a research report stating that S.F. Holding (06936) has advantages in the dynamic logistics market. They gave it a "buy" rating for its H-shares, with a target price of HK$46, based on discounted cash flow valuation. The target price implies an EV/EBITDA of 6.5 times in 2025, while the valuation trading range of some Chinese logistics companies and the world's top three logistics companies is between 6.5 times and 9 times. Morgan Stanley predicts that from 2025 to 2026, SF's revenue will grow at a compound annual growth rate of about 10%, and its profit will grow at a compound annual growth rate of about 20%. The supply chain management and international division will achieve significant growth through the global expansion of Chinese enterprises. In 2025, SF's H-shares will have a P/E ratio of 14 times, an EV/EBITDA ratio of 4.3 times, and a dividend yield of 2.9% in 2025. The bank believes that the stock still has the potential to increase shareholder returns, capital expenditure will peak, and there may be opportunities to increase dividends and stock buybacks.