NewSF Express delivers 10pc rise in share price on trading debut in Shenzhen under new identity
SF says it expects to report 57.5 billion yuan of sales for 2016, up 19.5pc from a year earlier. Profits for last year were expected to jump 280pc to 4.2bn yuan
Shares in SF Express, mainland China’s largest express delivery company, soared by their daily 10 per cent limit in Shenzhen on Friday when they traded for the first time after taking over and renaming a rare earth trader.
The stock, under its previous name of Maanshan Dingtai Rare Earth & New Material Co, had jumped for the fourth day this week, then on Friday surged 10 per cent under its new identity to a 17-week high of 55.21 yuan (HK$62.33) on the Shenzhen exchange.
The company’s capitalisation was valued at 231 billion yuan (US$33.4 billion) based on the closing price Friday.
Wang Wei, chairman and founder of SF, who holds about 65 per cent of the firm, saw his personal net worth swell to nearly 150 billion yuan.
“It was no surprise because the investing public was convinced of its earnings and growth potential,” said He Yan, a hedge fund manager with Shanghai Shiva Investment. “The delivery service sector is still a market where fierce competition will continue.”
SF engineered a backdoor listing via buying out Maanshan before injecting its assets into the listed vehicle.