HK Stock Market Move | SF INTRA-CITY (09699) rose nearly 7% in early trading, intensifying competition in the food delivery industry. Daiwa Securities said it is expected to drive the group's order volume.

SF INTRA-CITY (09699) rose nearly 7% in early trading. As of the time of reporting, it has risen by 5.59% to 18.12 Hong Kong dollars, with a trading volume of 46.5773 million Hong Kong dollars. On the news front, on the evening of July 5th, the battle between Alibaba and Meituan's delivery services heated up. Taobao Flash Sale, under Alibaba, distributed a large number of delivery vouchers last Saturday (5th). Taobao Flash Sale, in partnership with Ele.me, announced that the daily orders on Taobao Flash Sale exceeded 80 million, with non-food orders surpassing 13 million, and daily active users on Taobao Flash Sale exceeding 200 million. In addition, as of 10:54 pm on July 5th, Meituan's instant retail orders for the day had exceeded 120 million, with food orders surpassing 100 million. Daiwa has previously pointed out that as consumers increasingly focus on convenience and user experience, SF INTRA-CITY's delivery service has expanded from food delivery to different products and services. With the recent intensification of competition among food delivery platforms and increased promotion to boost market share, it will indirectly drive the group's order volume. Bank of America Securities notes that during the May Labor Day holiday, SF INTRA-CITY's transaction volume accelerated by 87% year-on-year, and during the 618 shopping festival, daily transaction volume increased by 50%, offsetting the impact of declining average selling prices. The bank predicts that the company's on-demand logistics transaction volume in the first half of the year will grow by over 40% year-on-year, exceeding the preliminary growth guidance of 30%.