I didn’t expect the white horse stock Shunfeng also “burst”. 8 evening of a paper performance loss announcement, shocked the whole market.
Shunfeng Holdings (80.80-0.19%, diagnosis): 2021 first quarter net profit
Expected loss of 900 million yuan – 1.1 billion yuan
On April 8, SF Holdings announced that it expects a net loss of 900 million to 1.1 billion yuan in the first quarter! When the news came out, the whole world was shocked to know that Shunfeng made a profit of 907 million yuan in the same period of the previous year!
Exactly what happened, can make the first quarter profit directly down so much, Shunfeng in the announcement gave five reasons.
1, the company has basically completed the forward-looking layout of each diversified logistics track, and the logistics market space is large enough and is in the key period of concentration to improve. After just a few years of development, the company’s new business segments have been ranked in the first echelon of the segment.
The company is in a critical period of new business expansion, and in order to expand market share and build long-term core competitiveness, the company continues to increase front-end investment in new business. A more complete track and product matrix will bring the company a wider user base, a larger market space and better scale synergy. With the high growth of new business, it will gradually release the pattern dividend and scale dividend.
- Last year’s epidemic slowed down the rhythm of the company’s capital expenditure investment to a certain extent, and the upward trend of customer demand was obvious, resulting in rapid growth of the company’s business volume, which led to capacity bottlenecks in many aspects of express transportation.
In order to ensure the timeliness and service stability, the company started to increase temporary resources from the fourth quarter of last year to undertake the incremental volume, resulting in cost pressure in the fourth quarter of last year and the first quarter of this year.
At the same time, the company started to increase capital expenditure in the fourth quarter of last year to upgrade the automation capacity of transit yards to improve the efficiency of resources, which is expected to further relieve the pressure of capacity bottlenecks in the second quarter of this year and start to release scale benefits in the second half of this year.
- Based on the massive business volume of land transportation products, the company re-examined the resource allocation of each business line, and comprehensively integrated the resources of speed transportation network, express transportation network, storage network and franchise network yards and lines, aiming to build a more professional and larger scale operation network, build service competitiveness and enhance customer experience. In the initial stage of integration, there will be overlapping resources, and it is expected that the first results will be seen in the third quarter of this year to achieve differentiated service experience, complementary resources and better network efficiency; at the same time, it will help the company to build a land transportation network with ultimate timeliness and improve the timeliness and service experience of large products.
- In order to meet the arrangements of e-commerce platforms and customers not to close for the Spring Festival, and in response to the advocacy of reducing staff turnover, the company gave a record high allowance to first and second line staff on duty in the first quarter.
Although the operating cost climbed in the short term, it effectively guaranteed the efficient operation of customers’ express shipments during the Spring Festival, practiced corporate social responsibility, and enhanced the centripetal force and cohesion of employees. The ultimate customer experience and warm employee care will be transformed into productivity and help the company continue to achieve its medium- and long-term business goals.
- During the outbreak of epidemic last year, the company held fast to its services, and the delivery of epidemic prevention materials and online consumer goods further drove the high growth of time-sensitive pieces, and the growth rate in the first quarter of this year was affected by this high base; at the same time, due to the arrangement that peers do not close for Chinese New Year in some regions, it divided part of the bulk business, and the growth of bulk business in time-sensitive pieces was lower than expected; the company launched the special express and new standard express products in April this year, and this upgrade is expected to bring the growth of time-sensitive pieces. It is expected that this upgrade will bring new momentum to the growth of time-sensitive items.
In addition, the rapid growth in the volume of special special distribution business and the strong demand for e-commerce in the sinking market have led to the rapid growth of economic business in the stock of customers, which has put pressure on the gross profit of the company’s e-commerce pieces, and the company will consider gradually taking over this kind of economic business with a more cost-adapted network and continue to expand the synergistic reuse of resources to optimize cost efficiency.
Comprehensive down is probably these several meanings: 1, last year because of the epidemic many expansion growth needs are postponed to this year, the first quarter of this year generated a lot of capital expenditure, and to the second half of the year to be effective; 2, in the New Year period, the company gave employees a record high overtime allowance. 3, peers this year is also grabbing business, while the price war under pressure on gross profit.
Share price has fallen 30% since the high
As of the close of business on the 8th, the share price of Shunfeng Holdings was 80.8 yuan, with a market value of 368.16 billion yuan. Since the February 18 high of 124.7 blocks so far, the company’s share price has fallen 35%. No wonder some investors said, looking at this share price, maybe the agency expected this bad performance in advance?
As of the latest data, the number of shareholders of Shunfeng accounts up to 160,000
Previously, the transport analysts at Anxin Securities published a research report, saying that the short-term profitability of SF would be under pressure due to 1) a high base in the same period last year (epidemic dividend + peers failed to resume work in time), 2) the impact of the New Year staggered period this year on demand, 3) the Tongda system does not close to divert some of the company’s bulk single business. It is expected that the growth rate of time-sensitive pieces will fall sharply in Q1, while the company increased resources from 2020Q4, the impact on costs or continue to Q1, taking into account the same period last year the company enjoys toll reductions, VAT concessions, etc., short-term profitability will be under pressure.
Anxin securities analysis, the same period last year, the cost of more dividends, 2021 express cost under pressure, mainly three points: 2021 tolls normalized levy. 2021 fuel prices continue to rise. The New Year does not close to bring additional costs.
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