BOCOM INTL: Raises SF INTRA-CITY (09699) target price to HK$15.4, maintains "buy" rating.

BOCOM INTL released a research report stating that it has raised the target price of SF INTRA-CITY (09699) to 15.4 Hong Kong dollars and maintains a "buy" rating. The bank believes that SF INTRA-CITY is still one of the beneficiaries of the food delivery subsidy war, and as subsidies return to rational levels in the future, there is still ample room for business growth. Considering the deepening business synergy between SF INTRA-CITY and SF Express in the long term, the scale of unmanned vehicle delivery operations will continue to reduce costs. Based on the significantly better-than-expected revenue growth in the first half of the year and the accelerated increase in demand for instant delivery services in the third quarter, BOCOM INTL has raised SF INTRA-CITY's revenue estimates for 2025-2027 by 14%/12%/12% to RMB 22-30.4 billion, with annual growth rates of 40%/20%/15%. Additionally, aided by the increase in order density, effective management of quality riders, and the optimization of operating cost ratio with the help of AI, the bank has raised profit forecasts for 2025-2027 by 26%/23%/27% to RMB 0.34-0.76 billion, with Non-IFRS net profit margins of 1.5%/2%/2.6% respectively.