Fedex of China, SF profit surges nearly 113% but share price decreases

CHINA’S biggest parcel delivery firm SF Holding’s annual profit soared nearly 113 percent in 2016, the company said yesterday in its first annual report since listing, but that did not boost its share price.

The company’s annual profit jumped about 113 percent year on year to 4.2 billion yuan (US$608 million) last year while its operating revenue rose 22 percent to 57 billion yuan. It delivered 2.58 billion parcels last year, up 31 percent from 2015, SF said in a notice filed to the Shenzhen Stock Exchange.

The financial results, however, didn’t buoy its shares, which shed 3.21 percent to 60.89 yuan yesterday.

The company’s market valuation hit 254.7 billion yuan by the end of yesterday, overtaking the country’s biggest developer Vanke Co and electronics giant Midea Group as the most valuable company listed in the Shenzhen market.

Caixin magazine said earlier the China Securities Regulatory Commission was closely observing SF’s trading amid concerns that the company aimed to capitalize on the huge share price gain to issue additional shares at a higher price.

SF listed on February 24 via a backdoor listing by injecting assets into Maanshan Dingtai Rare Earth & New Materials.

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