China Post Securities: Grit Rabbit (01519) and SF Express (06936) plan to cross-shareholdings to jointly promote the development of overseas businesses.

China Post Securities released a research report stating that they are optimistic about the business collaboration between SF and J&T Express after their cross-shareholding, helping Chinese companies in logistics to go global and capture global value. With Chinese logistics companies continuously increasing their overseas resource investments and growing in a sustained competitive environment, there will eventually be strong competitors in the global logistics industry. They recommend S.F. Holding (06936) and focus on J&T EXPRESS-W (01519). The main points of China Post Securities are as follows: SF and J&T plan to cross-shareholding S.F. Holding and J&T Express announced on January 15, 2026 that S.F. Holding plans to issue 226 million H-shares to J&T Express or its designated entities at HK$36.74 per share, accounting for approximately 4.29% of S.F. Holding's total post-issuance share capital. J&T Express plans to issue 822 million Class B shares to S.F. Holding at HK$10.10 per share, accounting for approximately 8.45% of J&T Express's total post-issuance share capital. Taking into account the Class B shares of J&T Express held by S.F. Holding earlier, it is expected that S.F. Holding will collectively hold approximately 10.00% of J&T Express's total share capital after the issuance. Each side has its own strengths in cross-border resources, and there is a basis for cooperation between the two parties S.F. Holding is the largest in Asia and the fourth largest in the world in comprehensive logistics services. In addition to leading domestic express delivery services, it has a wide range of business layouts overseas, particularly in areas such as cross-border trunk resources and overseas warehouses. In the first 11 months of 2025, S.F. Holding's international and supply chain business revenue reached 65.79 billion yuan, a year-on-year increase of 3.5%. J&T Express has particularly expanded its presence in overseas markets, especially in Southeast Asia. Its network coverage is deep and its last-mile delivery services are widely available. Taking advantage of the rising penetration rate of e-commerce in Southeast Asia, it has achieved rapid growth in the Middle East, Latin America, and other new markets. In 2025, J&T Express handled 7.66 billion packages in the Southeast Asian market and 404 million packages in new markets, with year-on-year growth rates of 67.8% and 43.6% respectively. In the first half of 2025, J&T Express's market share in the Southeast Asian market exceeded 30%. S.F. Holding already held shares in J&T Express before its listing. Before J&T Express went public, it acquired SF's convenience store network business, and the two parties had a history of cooperation. In the process of expanding their cross-border logistics footprint, substantial upfront investments are required for self-built trunklines or last-mile networks. Moreover, repeated investments by multiple companies could lead to unnecessary competitive pressures. Therefore, there is a practical basis for the two parties to deepen cooperation based on their respective areas of expertise. The cooperation between the two parties is expected to be further advanced, helping logistics to expand abroad If the cross-shareholding between the two parties progresses smoothly, they may collaborate more deeply in the future, complementing each other in the cross-border logistics market and expanding their cooperation. By leveraging SF's trunk resource advantages and J&T's last-mile network advantages, they can improve the quality of logistics products and services, enhance timeliness and stability, and explore cooperation in areas such as logistics infrastructure and network construction in more regions globally. They can provide high-quality integrated comprehensive logistics services and enhance the value of the industrial chain. This also aligns with one of the core goals of China's postal service during the "15th Five-Year Plan" period - enhancing the international parcel delivery service capability and key strengthening in the construction of "trunk-transfer-warehouse-delivery" capabilities. Risk warning: Macroeconomic downturn, competition in the express delivery industry exceeding expectations, express delivery companies' overseas expansion falling short of expectations, regulatory risks.