SF is a fast delivery giant, but more strings likely to be added to its bow
The financing business SF founder Wang Wei controls was spun off ahead of its IPO and has huge growth potential, industry analysts say
SF is already enjoying being dubbed as China’s Fedex, while analysts note besides its core business in fast delivery, it has plenty of potential to expand to the lucrative financial service business, by leveraging its vast client base and their credit information.
In fact, Wang Wei, founder of SF Holdings, spun off the financing business from the group company last August, before the company went public in Shenzhen last Friday.
Zhao Xiaomin, an angel investor and independent researcher in China’s logistics sector, said the company’s financial affiliate has huge potential to tap as its financial services could eventually encompass online payment, financing, wealth management, investment fund and leasing.
“The SF brand has struck a chord with millions of clients and they will believe in its financial services,” he said. “It may not be able to eventually secure a banking licence, but the scale of its financial services offered to vendors and clients could be large.”
Zhao added SF’s move to separate its finance business from the listed assets was a sign that it intended to launch a floating of the independent unit in future.
After going public, the company must be loaded with cash, which could in turn help it quickly ramp up the financing business through strategic acquisitions
According to disclosure filed by SF Holdings last August, the group company’s financing business already includes small loans, factoring (trading of receivables), financial leasing, and online payments.