HK Stock Market Move | SF INTRA-CITY(09699)rose more than 8% during trading hours, unmanned vehicle logistics accelerating landing, institutions say the company is still benefiting from the takeout subsidy war.

SF INTRA-CITY (09699) rose by over 8% during trading hours, and at the time of publication, it had risen by 6.09% to 14.29 Hong Kong dollars, with a turnover of 135 million Hong Kong dollars. On the news front, according to information from the official website of China Post, in early September, China Post Express Logistics Co., Ltd. issued a tender announcement for the centralized procurement project of 7,000 unmanned vehicles by 2025, setting a new industry record. It is worth noting that on June 3, SF INTRA-CITY announced that the scale of unmanned vehicle operation had increased to 200 units, with service network coverage in 38 major cities nationwide. In May, the national monthly active route has exceeded ten thousand, and profitability has been achieved in cross-city public domain and private domain logistics. BOCOM INTL released a research report stating that SF INTRA-CITY's revenue in the first half of the year was 10.2 billion Chinese yuan, a year-on-year increase of 49%, exceeding the institution's expectations by 16%. Among them, the intra-city/last-mile delivery business increased by 43%/57%, exceeding expectations due to the rapid growth in the food delivery and instant retail industries, leading to an increase in delivery demand. The bank believes that SF INTRA-CITY is still one of the beneficiaries of the food delivery subsidy war, and the future business space is still large. Considering the continuous deepening of its business synergy with SF, the scale landing of unmanned vehicle delivery continues to reduce costs. The institution maintains a "buy" rating on the company and raises the target price to 15.4 Hong Kong dollars.